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B-163310 1 (1980-01-29)

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COMPTROLLER GNERAL OF THE UNITED STh T
         WAS INIiGTOg D.C. ZOS0I


B-163310


The Honorable Robert Byrd
Majority Leader


January 29,


1980


United  States Senate                               Po e' , I, &'! r( ,. ,\

Dear Senator Byrd:

     We recently received a copy of a letter sent to you
by Mr. Earl D, McCartney which makes observations end
comments on the '#ay the General Accounting Office (GAO)
functions and mkes comments on a recent study requested
by Senator Max *aucus and the resulting report, Montana's
Libby Dam Projf:ct:   ore Study Needed Before Adding
Generators and A Reregulat.ng Dam (copy enclosed). In
addition, the letter raises-a question on the use of
combustion turbines as a generating alternative to the
expanded Libby Dam project for supplying peaking power in
the Pacific'Northwest. We offer the following information
to address fir. McCartney's concern,

     With respect to our operations in general, #tr. McCartney
argues GAO reporte are biased and disclose only those facts
supporting the position of the Congressman requesting the
assignment. Wle disagree and believe GAO's greatest single
asset is the competence, dedication, and enthusiasrmi of our
staff.  lie emphasize to our staff the great responsibility
with which they are entrusted, Our staff has maintained
a long-standing and hard-earned reputation for objectivity,
accuracy, and high professional standards. However, we
realize we cannot avoid the situation where certain portions
of our reports will be considered controversial in the eyes
of' those who may disagree with our conclusions.

     Concerning the Libby Dam study, we were reouested to (1)
assess the Corps of Engineers benefit/cost study for adding
geneiators at the existing dam and building a reregulating
dam downstream and (2) determine if there are other options
for meeting peaking power needs in the Pacific Northwest in
lieu of the Libby expansion. We found that the Corps' originil
benefit/cost methods used to justify the project are inappro-
priate an) the, overstate project benefits. We did not
recomend that the project be stopped out instetl rcom.mended
that t;:,e Corp;s of En'; IN:UCS rcconpu t, t'e ost ' di b.etCit -
of the Libby project usina a more appropriate method. The


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