§ 1500.305 - Cost control.

In addition to the cost-control purpose and effect of monitoring (§ 1500.302) and systems approval (§ 1500.304), the OFI has additional and more direct cost-control functions.

(a) The Incentive Rate of Return, developed by the Federal Energy Regulatory Commission (FERC), is to be administered by the OFI during planning and construction, Determination of Incentive Rate of Return, Order No. 31, Docket No. RM78-12, issued June 8, 1979. The OFI will rule on design changes prior to its approval of the final design during planning and construction (Determination of Incentive Rate of Return. Order No. 31, Docket No. RM78-12, issued June 8, 1979. The OFI cost estimate and on scope changes during construction).

(b) both by transfer of enforcement functions under Section 102(d) of the Reorganization Plan, and also by delegation from the FERC pursuant to Section 202(b) of the Reorganization Plan, 45 FR 85511 (December 29, 1980), the OFI will audit expenditures for rate base formation and accounting compliance. This audit must be performed on a timely basis during construction (Section 5 of the Decision, Finance Condition IV.2.).