January 8, 2016

Bonneville Power Administration’s Real Property Services

The Department of Energy’s Bonneville Power Administration (Bonneville) markets and transmits wholesale electricity to the utilities of the Pacific Northwest with a transmission system that includes more than 15,000 miles of high-voltage power lines throughout a seven-state service area.  To support Bonneville’s building, operation, and maintenance of transmission facilities, Real Property Services provides services such as acquisition of real property and vegetation management rights, appraisals, and real property records management.  

We found that Bonneville’s Real Property Services was not always managed efficiently and effectively.  We received consistent testimonial evidence that supported allegations regarding management pressure and a difficult work environment.  However, we did not substantiate allegations regarding conflict of interest and tribal payments.  In addition, we identified other issues involving potential overpayments for acquiring the rights to manage vegetation on existing easements, unauthorized real property acquisition agreements, improperly documented appraisal reviews conducted orally, and inaccurate and incomplete real property acquisition data.

These issues occurred because negotiations with landowners for the acquisition of additional vegetation management rights were initiated before an appraisal of those rights was completed.  Realty Specialists had not been formally notified of their authority levels, and Real Property appraisers cited a backlog of oral reviews and not enough time to document the backlog.  Finally, Bonneville lacked a sufficient review process for identifying errors.

Topic: Management & Administration