Electric Power:

Rate Impacts of Utah Power and Light Lawsuit To Obtain Federal Hydropower

RCED-87-192: Published: Sep 11, 1987. Publicly Released: Sep 11, 1987.

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GAO reviewed: (1) a consulting firm's study of the potential rate impacts of an electric utility's lawsuit to obtain low-cost federal hydropower from the Western Area Power Administration; and (2) the utility's comments regarding the study.

GAO found that: (1) the study highlighted potential increased costs to current federal power users; (2) the utility's comments highlighted potential benefits, specifically reduced rates, to certain customers; (3) the study and the utility's comments were based on assumptions about the pending decision and future market conditions; and (4) since the extent to which the lawsuit may affect electricity rates depends on the specifics of the court's decision, estimates produced by the study and company comments are speculative, but useful for indicating a range of possible outcomes.

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