Federal Energy Regulatory Commission: Charges for Hydropower Projects' Use of Federal Lands Need to Be Reassessed.

General Accounting Office Reports & Testimony, June, 2003

GAO-03-383 May 20, 2003

Hydropower projects generate power valued at billions of dollars. For projects located on federal lands, FERC is required to assess "reasonable annual charges" to use these lands. FERC agrees that fair market value is the most reasonable basis for assessing these charges. This report examines FERC's annual charge system and the extent to which it reflects the federal lands' contributions to hydropower. GAO described and assessed FERC's annual charge system, estimated the fair market value for the use of federal lands, and discussed the implications of higher charges on consumers and project owners.

Since 1987, FERC's charges for hydropower projects on federal lands have been based on a linear rights-of-way fee schedule that was...