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RCED-83-28 1 (1982-11-10)

handle is hein.gao/gaobabmrs0001 and id is 1 raw text is:                                                                       97

                   UNITED STATES GENERAL ACCOUNTING OFFICE
                              WASHINGTON, D.C. 20648


 RESOURCES. COMMUNITY.
AND ECONOMIC DEVELOPMENT
     DIVISION

     B-204494                                           NOVEMBER 10,1O2



     The Honorable Charles M. Butler, III
     Chairman, Federal Energy Regulatory
        Commission         ,

      Dear Mr. Butlerz                                         119907

           Subject: The Termination of the Common
                     Support Agreement (GAO/RCED-83-28)

           We have reviewed the efforts of the Federal Energy Regulatory
      Commission (FERC) to terminate the Common Support Agreement between
      FERC and the Department of Energy (DOE). This termination would
      transfer from DOE to FERC the responsibility for performing certain
      administrative functions in support of FERC. We found that FERC's
      estimates of the resources needed to perform the support functions
      were not based on a complete evaluation, and that FERC is not yet
      prepared for an orderly, economical transfer of the administrative
      support functions from DOE. We, therefore, believe that FERC needs
      to make complete evaluations of the resources it needs to assume
      responsibility for the functions and to prepare a transition plan
      for making the transfer.

           We undertook this review as part of our basic legislative re-
      sponsibilities because the House Appropriations Committee, in its
      report accompanying the bill for the fiscal year 1982 appropria-
      tions, directed DOE and FERC to work out the support problems and
      report the changes made in the Common Support Agreement.

           Our objectives were to determine whether

           --reasonable progress was being made in the negotiations be-
             tween FERC and DOE to terminate the Common Support Agree-
             ment and

           --resource estimates in the fiscal year 1983 budget for the
             administrative functions are adequately supported.

           Our review was based on interviews with FERC and DOE offi-
      cials involved in negotiating the termination of the Common Support
      Agreement and making the transfer of functions. We also examined

                                                             (308533)


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