Lawmakers, DOE probe Western Area Power Administration spending

Dive Brief:

An investigation into spending at the Western Area Power Administration (WAPA) continues, and ABC 15 in Arizona reports the agency has not been cooperating and could be holding more than $1 billion in funds, a potential sign of overcharging.
According to a report by the local television station, federal lawmakers in November sent WAPA a letter criticizing the agency for failing to turn over requested documents.
There is also a criminal investigation, headed by the Department of Energy's Office of Inspector General, examining the possibility of fraud and waste at WAPA.

Dive Insight:

ABC 15 reports WAPA is facing a pair of investigations: the criminal inquiry into "outlandish" spending within the agency, particularly using government credit cards, and a second investigation, headed led by U.S. Senators John McCain (R-AZ) and Jeff Flake (R-AZ), examining whether the agency has been overcharging for power.

The two lawmakers sent a letter last year to Deputy Secretary of the U.S. Department of Energy Elizabeth Sherwood-Randall, calling for the agency to examine WAPA's practices. Their interest was precipitated by three power cooperatives — the Irrigation and Electrical Districts Association of Arizona, the Grand Canyon State Electric Cooperative Association, and the Arizona Municipal Power Users Association — raising concerns over WAPA's practices.

“It is our understanding that WAPA’s customers are being asked to fund WAPA’s efforts to expand its mission despite the amount of power it delivers remaining stagnant,” McCain and Flake wrote in the 2015 letter. “We further understand that WAPA is asking its customers to increase funding with little or no accountability or assurances that the increased expenses are prudent and that the rates charged for these federal resources are reasonable.”

Among questions in the letter, the senators asked WAPA what percent of its power is sold in Arizona, and in both absolute and percentage to describe recent rate increases.

WAPA is one of four power marketing administrations within the DOE. The administration supplies power in a 15-state region from 56 hydropower facilities.