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PSAD-79-49 1 (1979-03-22)

handle is hein.gao/gaobaayvl0001 and id is 1 raw text is: 




REPORT BY THE U.S.



General Accounting Office


Tennessee Valley Authority Can

Improve Estimates And Should

Reassess Reserve Requirements

For Nuclear Power Plants




Cost estimates for Hartsville, Phipps Bend,
and Yellow Creek nuclear powerplants are
understated several hundred million dollars
each, because of excluded costs and opti-
mistic and probably unachievable construc-
tion schedules. GAO recommends that cost
and schedule estimates for the plants be
adjusted to reflect the best assessment of
what actual results will be.


Since 1974, forecasts of demands for elec-
tricity  during the  1980s have decreased
steadily and significantly. Generating capac-
ity requirements which are based on the
demand forecasts include a reserve factor of
about 30 percent, which is equal to about
one-third to one-half of the generating
capacity to be provided by the Tennessee
Valley Authority's seven nuclear plants. In
view of the trend of demand forecasts, we
recommend that the Board of Directors reas-
sess the reserve requirements.


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J   PSAD-79-49
MARCH 22, 1979

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