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123637 1 (1984-03-12)

handle is hein.gao/gaobactgp0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE STATEMENT OF F. KEVIN BOLAND SENIOR ASSOCIATE DIRECTDR RESCURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION BEFORE THE SUBCOMMITTEE ON MINING, FOREST MANAGEMENT, AND THE BONNEVILLE POWER ADMINISTRATION OMMITTEE ON INTERIOR AND INSULAR AFFAIRS UNITED STATES HOUSE OF REPRESENTATIVES Mr. Chairman and Members of the Subcommittee: We appreciate this opportunity to discuss the Bonneville Power Administration's (Bon- neville) oversight activities related to Washington Public Power Supply Systom\(Supply System) nuclear power projects 1, 2, and 3. You requested that we follow up on our 1979 regart on this topic. Specifically, you asked that we examine the impact of project costs on 0onneville rates; Bonneville's contractual authorities for oversight; its oversight policies, procedures, organization, and staffing arrangements; and the adequacy of its audit efforts at the Supply System. Supply System-related costs have had a major impact on Bonneville rates. Ratepayers are now responsible for almost $1 billion annually in costs related to the three projects. Furthermore, Supply System costs are projected to represent about 30 percent of Bonneville's total projected revenue requirements for operating year 1985. As was the case in 1979, Bonneville's contractual authorities for oversight remain limited. However, some actions have occurred since 1979 to improve these linited authori- ties. These include a 1980 Memrandum of Understanding between Bonneville ard the Supply Sys:am to improve Bonneville's access to information related to the projects, a restructur- ing of the Supply System's Executive Board, installation of a board and proj ct management res onsive to Bonneville's taking an active oversight role, and efforts by Bnneville's current Administrator to improve the working relationship between the two agencies. With these actions, Bonneville's current approach to oversight calls fo: its involve- men early in Supply System management and decisionmaking-having input to tie Supply Sys em Executive Board and management before decisions are made. To most effectively im- pl nt this approach, Bonneville's management need accurate and comprehensive information on upply System activities and status early in the decisionmaking process. However, we fou that because of a continued need for defined organizational roles and versight pol- ici s and procedures for achieving Bonneville's oversight objectives, Bonney lle management can ot be assured they will receive the information needed to be effective prticipants in Supply System decisions. Our review found that the oversight staff and management were uncertain as to how Bon- nev lle would accamplish its oversight objectives and what staff responsibilities are. Consently, staff effectiveness in providing Bonneville management with th support they nee to participate in Supply System management is diminished. Our review also identified are where Bonneville could better utilize its existing contractual authorities for over- sig t. These include a need for more comprehensive audit efforts, budget review, and par icipation in project-related meetings. Recently, Bonneville has made some organizational and staffing changes .o establish a focal point for Bonneville oversight of the Supply System projects. Bonnevil.le's goal is to See the ocmpletion of the three nuclear projects in the most cost-effective manner. Whi e the recent organizational and staffing changes are good first steps to oversight, we bel eve their efforts would be more successful if Bonneville would define its overall over- sig t roles, policies, and procedures, and then review its oversight organiz tion and sta fing to assure full support of its objectives. O111111 12J637

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