Policies governing Bonneville Power Administration's repayment of federal investment still need revision

Technical Report · Wed Oct 26 04:00:00 EDT 1983

OSTI ID:5443477

The federal government, through the Bonneville Power Administration, has invested over $7 billion in hydroelectric facilities in the Federal Columbia River Power System. Through 1964, Bonneville repaid the federal investment using fixed annual repayments. However, in 1965, Bonneville dropped fixed annual repayments and adopted the repayment study method for determining revenue requirements. The repayment study is designed to produce revenues to pay costs, including repayment of the federal investment. The only requirement is that the projects be repaid within their scheduled life. The federal investment, however, is the lowest category of expense; therefore, if revenues are insufficient to cover all expenses, the federal investment is deferred. In the past 6 years Bonneville has experienced operating losses, resulting in nonpayment of the federal investment. As in 1981, GAO reports that Bonneville's repayment study method is inadequate and recommends a fixed/mortgage basis with required annual repayments. (PSB)

• Research Organization: General Accounting Office, Washington, DC (USA). Resources, Community and Economic Development Div.
• OSTI ID: 5443477
• Report Number(s): GAO/RCED-84-25; ON: DE84900551
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290000* -- Energy Planning & Policy
BONNEVILLE POWER ADMINISTRATION
COST
ECONOMIC POLICY
ECONOMICS
ELECTRIC POWER
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCING
GOVERNMENT POLICIES
HYDROELECTRIC POWER PLANTS
INVESTMENT
NATIONAL GOVERNMENT
NATIONAL ORGANIZATIONS
OPERATING COST
PAYBACK PERIOD
POWER
POWER PLANTS
US DOE
US ORGANIZATIONS