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UNITED STATES GENERAL ACCOUNTING OFFICE
\\N f WASHINGTON, D.C, 20548
May 15, 1984
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B-200490
The Honorable Richard L. Ottinger
Chairman, Subcommittee on Energy RELEASED
Conservation and Power
Committee on Energy and Commerce
House of Representatives
Dear Mr. Chairman:
Subject: Information on Relicensing Cases at the Federal
Energy Regulatory Commission (GAO/RCED-84-116)
Your April 13, 1984, letter requested that we provide infor-
mation on whether the public benefits when competing applications
are filed for relicensing existing nonfederal hydroelectric facil-
ities. You also asked that we provide information on whether the
Federal Energy Regulatory Commission (Commission), which reviews
applications and issues the licenses, can serve as a surrogate for
competition when no competing application is filed. You asked
that this information be provided in time to use for May 17, 1984,
hearings.
In regard to the first issue, we found that in five of the
nine competitive licensing cases we examined, the licensee
submitted an amendment to upgrade the project after a competitive
application was filed. In examining 10 noncompetitive licensing
cases with respect to the second issue, we noted that in some
cases the Commission has required licensees to make improvements
to facility operations. The following sections briefly describe
the Commission's licensing role; our ob]ectives, scope, and
methodology; and detailed results of our review.
COMMISSION'S LICENSING ROLE
The Commission is authorized, among other matters, to issue
licenses to nonfederal entities for building and operating hydro-
electric facilities for the development of the Nation's water re-
sources. The licenses, issued for a period up to 50 years,
require that any hydroelectric project be adapted-to a comprehen-
liive plan (prepared by the applicant) for developing and using
water resources, not only for power development, but also for
other purposes such as recreation, water quality, irrigation, fish
and wildlife enhancement, and overall environmental effect. The
Commission is required to give preference to states and
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