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118201 1 (1982-04-23)

handle is hein.gao/gaobacsve0001 and id is 1 raw text is: 

                                                          / /U0  I
            UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C.

                                            FOR RELEASE ON DELIVERY
                                            EXPECTED AT 10:00 A.M.
                                            APRIL 23, 1982
       118201

                           STATEMENT OF
                         F. KEVIN BOLAND
     SENIOR ASSOCIATE DIRECTOR, ENERGY AND MINERALS DIVISION
                            BEFORE THE
           SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER
                 COMMITTEE ON ENERGY AND COMMERCE
              UNITED STATES HOUSE OF REPRESENTATIVES

Mr. Chairman:

     We appreciate this opportunity to discuss the Federal Energy

Regulatory Commission's (FERC) authority to affect least cost

investment strategies by utilities, the degree to which it has

exercised such authority, and the limitations--especially legal--

which may hinder FERC from serving as a model least cost regulator

for the Nation.  As you know, FERC is responsible for regulating

the transmission and wholesale sales of electricity in interstate

commerce, and for licensing non-Federal hydroelectric projects.

     At your request, we reviewed six areas of FERC's jurisdiction

relating to least cost investment: (1) rate structure and revenue

requirements, (2) hydroelectric permits and licenses, (3) wheeling,

(4) pooling, (5) rate approval for Federal power marketing adminis-

trations (PMA), and (6) cogeneration and small power production.

Further, we looked at part of the Department of Energy's (DOE)

mandated reliability study.  The attachment to this testimony con-

tains our response to specific questions you asked in your

January 29, 1982, letter regarding each of the above areas.  Time

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