For example, from 1987 to 1995 the availability of the plants in the Corps’ South Atlantic Division dropped from 95.4 percent to 87.2 percent. Many of the Corps’ hydroelectric power plants in the Southeast are aging. Also, according to Corps officials, some units are poorly designed by the manufacturer and not properly installed by the contractor, and other units are adversely affected by the way in which they are operated. Extended outages, Southeastern officials estimate, have resulted in lost revenues of about $13 million to Southeastern since fiscal year 1986. The need to spend more to maintain and repair the Corps’ aging hydroelectric power plants will compete with the need to maintain and repair other Corps facilities, such as those related to commercial navigation, flood damage reduction, hurricane and storm damage reduction, and the restoration and protection of environmental resources (including fish and wildlife habitat). Given the emphasis on routine and ongoing maintenance and repair work and the lengthy justification processes that must be followed for extensive repairs when units break down unexpectedly, the Corps frequently performs repairs that are short-term and reactive. Specifically, we examined the extent to which (1) these power plants are experiencing outages and (2) the current planning and budgeting processes allow the Corps to perform timely and effective repairs and rehabilitations of its hydroelectric assets.
Why GAO Did This Study

GAO discussed the maintenance and repair of hydroelectric powerplants operated by the Army Corps of Engineers in the Southeast, focusing on the extent to which: (1) the power plants are experiencing outages; and (2) planning and budgeting processes allow the Corps to perform timely and effective repairs and rehabilitation of its hydroelectric assets.

What GAO Found

GAO noted that: (1) due to lengthy outages, the plants' availability to generate power dropped from 95.4 percent to 87.2 percent and have lost about $13 million since fiscal year (FY) 1986; (2) some of the plants' units are aging, need repair or replacement, were poorly designed, were not properly installed, and have been adversely affected by the way they have been operated; (3) the need to spend more to maintain and repair the aging hydroelectric power plants will compete with the need to maintain and repair other Corps facilities; (4) the Corps' emphasis on routine, ongoing maintenance and repair work and the lengthy justification process for extensive work delays long-term repairs; and (5) the Corps is addressing the plants' planning and budgeting needs.