Dive Summary:

• The U.S. Department of Energy's (DOE) top agency inspector has found that the agency failed to properly manage a $700 million program aimed at demonstrating the use of smart grid technology.
• The findings claim that about $12.3 million costs were "questionable;" specifically the inspector general found that the DOE had overpaid two recipients a total of $9.9 million and reimbursed a recipient $2.4 million for unmanufactured energy storage units.
• The initial $700 million in funding came under a 2009 American Recovery and Reinvestment Act and was meant to demonstrate innovative smart-grid technologies including advanced electricity meters, automated distribution systems, and grid-scale energy storage systems.

From the article:

Patricia Hoffman, DOE's assistant secretary for electricity delivery and energy reliability, defended the program, saying in a response included in the report that the agency has implemented a higher level of oversight for the program than for others at DOE. Hoffman said in response to an IG recommendation that DOE ensure "adequate" review of payments that the current review process is "significantly more than 'adequate.'"

Hoffman also said that the $2.4 million reimbursed for energy storage units that had not been manufactured was in line with the terms of the award agreement. ...