SCEG OATT Formula Transmission Rate Filing.pdf - SCANA ...

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Charles A. White
Docket ER 10- -000
Page90f17
Exhibit No. SCE-6
regulators and attended various technical conferences sponsored by the FERC. The
2 GridSouth Sponsors continued to monitor RTO developments in the southeast and other
3 regions, the SMD rulemaking and related proceedings, and proposed national energy
4 legislation.
5 From June 2002 through mid-2003, regulatory and legislative uncertainty surrounding the
6 establishment of a single Southeastern RTO continued to grow. Consequently, during
7 this period the GridSouth Sponsors terminated all vendor and services contracts, released
8 all GridSouth employees and sold the building that would have housed GridSouth's
9 headquarters. On August II, 2005, the GridSouth Sponsors notified the FERC that they
10 were terminating the GridSouth project, and the FERC officially terminated the
II proceeding in Docket No. RTOI-74-000 by order issued October 20,2005.
12 Q. WHAT DOES SCE&G SEEK IN THIS CASE?
13 A. This is the first transmission rate case that SCE&G has filed since the termination of the
14 GridSouth proceeding; therefore, SCE&G is now requesting amortization of the costs that
15 SCE&G has incurred in good faith in response to the Commission's RTO initiative.
16 Q. WHEN DID SCE&G BEGIN ACCUMULATING COSTS ASSOCIATED WITH
17 THE FORMATION OF GRIDSOUTH?
18 A. SCE&G began accumulating costs associated with the formation of GridSouth on May
19 15, 2000, the date the GridSouth Limited Liability Agreement was signed by Duke,
20 CP&L and SCE&G. During the early phases of GridSouth's formation, substantial
21 management, personnel and other company resources were required, and legal and