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EMD-80-25 1 (1979-11-20)

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REPORT BY THE                                    .IIO1(,



Comptroller General


OF THE UNITED STATES





Montana's Libby Dam Project:

More Study Needed Before Adding

Generators And A Reregulating Dam



The U.S. Army Corps of Engineers has not
shown that its proposed project to add more
generators to the Libby Dam and a reregula-
ting dam downstream is economically justi-
fied or the best alternative for meeting
Pacific Northwest electricity peaking needs.

GAO questions the Corps method of calcula-
ting the project's benefits. The Corps plans to
reassess the benefit-cost ratio using a better
method and submit the results to the Con-
gress by early 1980.

Neither the Corps nor the Bonneville Power
Administration has adequately studied other
ways of meeting forecasted peak power short-
ages. Combustion turbines, cogeneration,
power exchanges, load management, and peak
pricing options should be evaluated before the
proposed project proceeds.
This report responds to a request from
Senator Baucus.





        S2                                                   110949





                                                                    EMD-80-25
                                                            NOVEMBER 20, 1979

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