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Federal Electricity: Retail Competition Could Create Government Savings

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Report Type Reports and Testimonies
Report Date Sept. 30, 1997
Report No. RCED-97-244
Subject
Summary:

The federal government--the largest consumer of electricity in the United States--could benefit by purchasing electricity in a competitive market. GAO estimated potential savings by referring to several published forecasts of the extent to which competition may reduce electricity prices. GAO found that the government could save anywhere from $1 billion to more than $8 billion over the 18-year period from 1998 to 2015 if it purchased electricity competitively. However, falling electricity prices would likely cause the government to buy more electricity than it would have bought at higher prices. After adjusting for that likelihood, GAO estimated that federal spending on electricity would decrease by $0.6 billion to $6.5 billion during the same period.

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