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RCED-83-192 1 (1983-09-29)

handle is hein.gao/gaobabegq0001 and id is 1 raw text is: *4 nWIC.o tff lee ' r210aed Outside the IA; 0( .... fh , cx aA sj.... -,,za, or Specific approval o -OngreszLa) 1e2lations. REPORT BY THE U.S. RELEASED General Accounting Office Reasons For The Termination Of, And DOE Losses In, A Geothermal Demonstration Powerplant Project The 50-megawatt Baca geothermal demon- stration powerplant project, located in north- ern New Mexico, was the Department of Energy's (DOE's) initial effort to demon- strate geothermal powerplant technology. The project, started in 1978, was believed to have a high probability of success, and its cost was to be shared equally with the industry participants. GAO's review showed that the project was terminated in January 1982 because suffi- cient geothermal steam to operate the pow- erplant could not be obtained. The early termination resulted in DOE paying a dis- proportionate share--$45 million, or 64 per- cent--of the $70 million spent on the project because it had paid the majority of the powerplant-related costs at that time. How- ever, a portion of these costs may be recov- ered through the sale of powerplant equip- ment. DOE indicated that it learned lessons from this experience and will act to prevent these problems from occurring on other projects. r7: U S. GAO/RCED-83-192 0 '741 SEPTEMBER 29, 1983 1cOU 141

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