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RCED-85-169 1 (1985-09-16)

handle is hein.gao/gaobabntp0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION September 16, 1985 B-220261 The Honorable Edward J. Markey Chairman, Subcommittee on Energy Conservation and Power Committee on Eneray and Commerce House of Representatives Dear Mr. Chairman: Subject: Evaluation of Cost Estimates Related to the Relicensing of Hydroelectric Projects (GAO/RCED-85-169) Your letter of July 11, 1985, requested that we review widely varying cost estimates associated with relicensinq hydroelectric projects. These cost estimates were presented to your Subcommittee during its consideration of legislation to reform the process used by the Federal Energy Regulatory Commission to relicense hydroelectric projects. After providing your staff with a briefing on our work on August 20, 1985, they asked us to summarize the results in a report to you by September 16, 1985. The enclosed report evaluates the cost estimates for transferring (1) the licenses of three projects in California from a private utility to municipalities and (2) all investor-owned hydroelectric projects nationwide. For the California projects we discuss the methodology, data, and assumptions used in the studies, and recalculate the estimates to reflect other assumptions which we believe may be at least as valid and could have a substantial effect on the costs. We did not recalculate the estimates for the nationwide cost of transferring all licenses because we believe that numerous uncertainties preclude an accurate estimate of the nationwide cost impact at the present time. We do, however, discuss the methodologies, data, and assumptions of the estimates that were presented to the Subcommittee. 111111111111111111111 (007062) 127945

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