Actions for Office of Inspector General report on audit of the Western Area Power Administration`s contract with Basin Electric Power Cooperative [electronic resource].

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Office of Inspector General report on audit of the Western Area Power Administration`s contract with Basin Electric Power Cooperative [electronic resource].

Published
Washington, D.C. : United States. Dept. of Energy, 1997.
Oak Ridge, Tenn. : Distributed by the Office of Scientific and Technical Information, U.S. Dept. of Energy.
Physical Description
20 pages : digital, PDF file
Additional Creators
United States. Department of Energy and United States. Department of Energy. Office of Scientific and Technical Information
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Summary
At the request of the Western Area Power Administration (Western), an audit of 17 areas was conducted with respect to possible overcharges on a power contract between Western and Basin Electric Power Cooperative (Basin), Contract No. DE-MP65-82WP-19001. The contract for Western`s purchase of electric power from Basin was entered into on April 15, 1982, and was in effect from January 1, 1986, through October 31, 1990. During this 58-month period, Basin billed Western approximately $197.6 million. Overall, it was found that Basin overcharged Western approximately $23.8 million. These overcharges occurred because Basin: (1) did not recognize or amortize as gain its overestimate of completion and correction costs for Antelope Valley Station (AVS) Unit 2; (2) did not amortize the gain on the sale/leaseback of AVS Unit 2 as an offset to lease costs; (3) billed Western prematurely for lease and interest costs; (4) overcharged for the cost of coal by including administrative and general expenses and profit, as well as incorrectly calculating discounts, royalty payments, and imputed interest costs; (5) made faulty calculations of amortization rates for deferred costs; (6) used a shorter depreciation period for AVS common facilities than it had used for other power plants; (7) retained tax benefit transfers; and (8) charged Western for interest and depreciation that had been paid by others. In addition to the $23.8 million in overcharges, interest accrued on the overcharges through December 31, 1996 was estimated to be approximately $22.1 million, resulting in a total of $45.9 million due Western.
Report Numbers
E 1.99:doe/ig--0409
doe/ig--0409
Subject(s)
Other Subject(s)
Note
Published through SciTech Connect.
06/25/1997.
"doe/ig--0409"
"TI97006973"
"NONE"
USDOE Office of Inspector General, Albuquerque, NM (United States). Western Regional Audit Office
View MARC record | catkey: 14350611