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EMD-81-95 1 (1981-06-12)

handle is hein.gao/gaobabcal0001 and id is 1 raw text is: 'UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 XCGY AND MINSMfLS June 12, 1981 DIVION B-200659 The Honorable Gerald P. Carmen Administrator of General Services Dear Mr. Carmen: Subject: fieview of the General Services Administration's Electric Utility Intervention Activities (EMD-81-95) Under the Federal Property and Administrative Services Act of 1949, the General Services Administration (GSA) has management responsibility for ensuring that the Government makes economical purchases of public utility services. To ensure that utility rates are reasonable, GSA intervenes or authorizes other Federal agencies to intervene in State regulatory hearings on retail rate increases proposed by utility companies. This report discusses problems in GSA's intervention procedures and controls and recommends actions that are needed to help GSA meet its intervention responsi- bilities. We made our review at GSA's Regulatory Intervention Division, Office of Public Utilities, Transportation and Public Utilities Service. We reviewed laws, regulations, policies, and other documentation related to intervention, interviewed officials responsible for program planning and implementation, and reviewed audit reports that GSA's internal auditors prepared on intervention management. In reviewing GSA's procedures and controls, we evaluated the adequacy of the methods being used to identify signifi- cant rate cases, provide guidance to GSA's technical staff assigned to the cases, coordinate GSA and other Federal agency intervention activities, and report on intervention results. In summary, we identified four areas in which GSA's management procedures or controls for its intervention efforts could be improved. These improvements are needed to ensure that: --All significant rate increase proposals are identi- fied and reviewed. --GSA provides its staff adequate guidance to make intervention effective. (309334) C/Itt/V

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