Changes in BPA Billing Practices Could Reduce Interest Costs and Improve Cash Flow
RCED-83-64
Published: Feb 28, 1983. Publicly Released: Feb 28, 1983.
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Highlights
GAO reviewed the electricity billing practices of the Bonneville Power Administration (BPA) to ascertain the actions planned to improve the timeliness of billings.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should direct BPA to place a higher priority on the billing function and complete the first phase of the automated billing system by February 1984, as planned, and expedite efforts to have the automated billing process fully operational before July 1987. However, if the automated billing system is not expedited, the Secretary of Energy should direct BPA, to the extent practicable, to estimate and bill those customers whose bills cannot be processed on an actual basis within 7 days. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct BPA to review existing contracts with the California utilities and, at the first identified opportunity, require the four California utilities to pay monthly or pay an interest charge similar to that now being paid by the Western Area Power Administration. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct BPA to use the Department of the Treasury's Simplified Inter-Governmental Billings and Collections System in order to receive payments promptly, or charge the Wholesale Power Rate Schedule during the next rate-setting process and bill the Federal agencies interest for late payments in the same manner that BPA charges other utilities interest. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Billing proceduresCash managementCost controlElectric utilitiesEnergy marketingInformation systemsInterest ratesLate paymentsFederal agenciesContract modifications