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RED-75-253 1 (1974-08-15)

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UNITED STATES GENERAL ACCOUNTING OFFICE


                        WASH[NGTON, D.C. 20W48




B-178205


The Honorable John C. Sawhill
Administrator, Federal Energy Administration


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Dear Mr. Sawhill:

     We have surveyed the energy conservation practices being encouraged
by State utility commissions and public utilities. Our objectives were
to ascertain whetner there were problems hampering the implementation of
conservation practices and, if so, whether Federal action could be taken
to alleviate such problems.

     Our work was performed primarily at the Federal Energy Administra-
tion (FEA) ana the Federal Power Commission (FPC) headquarters. In
addition, we comunicated with selectee nublic utility commissions and
public utilities in the District of Col lia, Michigan, and 1ashingtcn
and sent questionnaires to the State ut    - commissions of the
50 States, the District of Columbia, the ., gin Islands, and Puerto Rico.

     Because of the short time frame available for Federal agencies to
formulate and carry out long-range conservation practices, the rapid
changes in organizational arrangements for carrying out the Federal re-
sponsibilities, and the planned programs by Federal agencies, we de-
cided not to continue further with our survey at this time. We did,
however, identify several problems which should be brought to your at-
tention concerning the encouragement of energy conservation programs of
the utilities and State utility comissions.

     These problems involve the need for (1) evaluation of the effective-
ness of existing or planned energy conservation practices of utilities,
(2) additional authority for State utility cof-mlssiops to require or
pror.ote energy conservation practices, and (3) intensification and coor-
dination of the Federal effort.

NEED TO EVALUATE LXISTING
OR PLANNED _COSERVATICN PRACTICES
OF UTILITIES

     Although various energy conservation practices are being carried out
or planned by some public utilities and State utility commissions, not


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