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EMD-82-129 1 (1982-09-30)

handle is hein.gao/gaobabmro0001 and id is 1 raw text is: 


                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548


WNARGY AND MINi.ALS  -e-eeb......1982
    DIVIBION                                  gpim~r 0'18


    B-209052                          RLAS&II ll.



    The Honorable Robert Walker                                  119811
    House of Representatives

    The Honorable John Heinz
    United States Senate

    Subject: Analysis of the Feasibility of Tennessee Valley Authority
              Power Being Made Available through Power Exchange Arrange-
              ments to General Public Utilities (GAO/EMD-82-129)

         An issue discussed at March 1982 hearings before the House
    Science and Technology Committee was the current excess power
    generation capacity of the Tennessee Valley Authority (TVA).
    The question arose as to the viability of wheeling 1/ excess
    TVA power to General Public Utilities (GPU). You asked that we
    make an independent investigation into the feasibility of a sale
    of TVA power to GPU and any problems that might be involved.

         W.a found that any arrangement involving TVA power that would
    benefit GPU is unlikely at this time. Economics is the primary
    reason such arrangements have not occurred and probably will not
    occur unless TVA makes power available at prices lower than pre-
    viously discussed with GPU. Even if the TVA power was economic-
    ally competitive, there are some technical, legal, and institu-
    tional constraints which-would be involved. For example, the TVA
    Act precludes a sale of power from TVA to GPU. TVA would have to
    sell power to systems with whom they had exchange arrangements in
    1957. In turn, these systems could make power available to GPU.

    OBJECTIVES, SCOPE, AND METHODOLOGY

         Our objectives were to identify the feasibility and practi-
    cality of selling power from TVA to GPU. Early in our review, it
    became apparent that there were economic, technical, legal, and
    institutional constraints which may impede arrangements whereby
    GPU could benefit from surplus capacity on the TVA system. There-
    fore, our review focused on these constraints. Our review was



    I/The use of the transmission facilities of one system to trans-
      mit power to another system.


(005286)

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