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EMD-77-7 1 (1976-12-02)

handle is hein.gao/gaobaabsj0001 and id is 1 raw text is: 




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                       1 -7   Not to b released outside the Ixo-rn



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     * - ..     REPORT OF THE

          * - - COMPTROLLER GENERAL

                OF THE UNITED STATES






                An Evaluation Of The Federal Power

                Commission's Rulemaking On Utilities'

                Construction Work In Progress


                GAO was asked to review a proposed Federal
                Power Commission rule to allow natural gas
                and electric utility companies to include con-
                struction work in progress in their bases for
                computing rates.

                The rulemaking order does not appear to
                serve adequately 3ither of the purposes the
                Commission originally envisioned. The im-
                mediate financial impact appears to be mini-
                rmnl, and little change will result in the utili-
                ties' a!lowances for funds used during con-
                struction account.
                Of more importance, the rulemaking sem a
                precedent for the Commission to depart from
                its historic used and useful- policy and pro.
                vides an opening for utilities to submit future
                -at- increase filings with cost of construction
                work in progress in the rate base.


DEC. 2.1 7


EMD-77-7

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