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089083 1 (1976-12-15)

handle is hein.gao/gaobacvcg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON D C 20548 ENERGY AND MINERALS DIVISION DEC 1 51976 The Honorable Jack 0. Horton Assistant Secretary, Land and Water Resources Department of the Interior Dear Mr. Horton. Because the United States faces a shortage of domestic oil and natural gas, both the President and Congress have emphasized the national goal of reducing the consumption of these fuels in order to decrease the Nation's dependence on unreliable foreign supply sources. One method to reduce the consumption of oil and natural gas is to give priority in selling surplus hydroelectric power to displace electricity generated with these fuels. We reviewed the Bureau of Reclamation's Upper Missouri Region (UMR) and the Upper Colorado Region (UCR), and the Southwestern (SPA) and the Southeastern (SLPA) Power Admin- istrations' marketing activities to assess their procedures' for marketing surplus power and to determine the potential for Federal power operations to displace scarce fuel re- sources. We discussed the results of our review with SPA and SEPA officials. The Federal power marketing agencies place different priority on accomplishing oil and natural gas conservation. when selling surplus hydroelectric power, several of the Bureau's marketing regions actively attempt to choose customers who will displace oil and natural gas as opposed to coal in their generation Neither SPA nor SEPA, however, consider fuels being displaced when marketing surplus power. We found that surplus power sales by these agencies were often displacing coal-fired generation when concurrent oil and gas-fired generation was occurring and could possibly have been displaced. <1 O?

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