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EMD-80-49 1 (1980-01-14)

handle is hein.gao/gaobabadb0001 and id is 1 raw text is: 
                  UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548        it~        m0

tKOY AND MINCRAIA                                JANUARY 14, 1980
    DIVISION

       B-197332


                                                          111325
       The Honorable James R. Sasser
       United States Sepate

       Dear Senator Sasser:/AC  00 / 0

             Subject: LTVA's Clean Air Settlement with EPA7
                       (EMD-80-49)

             On December 5, 1979, we briefed your staff on the
        Tennessee Valley Authority's (TVA's) clean air settlement
        with the Environmental Protection Agency (EPA). In that
        briefing your staff asked us to explain information per-
        taining to

             --our $6 billion estimate for the total cost of
               the Consent Decree,

             --the $19 million already spent on the Cumber-
               land steam plant, and

             --the amount of money obligated to carry out the
               capital cost of the clean air agreement.

        $6 BILLION ESTIMATE

             The $6.063 billion (see table 1) represents our
        estimate of the total cost of all Consent Decree compliance
        costs in 1982 present value dollars. These costs are a
        result of the clean air initiatives that*TVA agreed to
        undertake in order to comply with EPA's clean air standards.
        They represent the total individual costs of compliance
        for 10 steam plants through their expected life computed
        from 1982 forward.

             The capital costs were computed by using TVA's latest
        estimate of total capital outlay for scrubbers, electrostatic
        precipitators and coal washing facilities as of 1982 (see
        table 2). These costs represent about 14 percent of the
        $6.063 billion.


(008942)

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