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

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Charles A. White
Docket ERIO-_-OOO
Page 10 of 17
Exhibit No. SCE-6
outside consultants' fees were incurred in connection with stakeholders meetings and
2 drafting corporate governance documents, regulatory filings and the documents required
3 for the October 2000 petition for declaratory order. For example, the October 2000 filing
4 alone included the Limited Liability Agreement that created the governance structure for
5 GridSouth sufficient to satisfY the independence requirement of Order No. 2000; the
6 Transmission Operating Agreement that defined Functional Control and set out the
7 contractual arrangement under which each participant transferred to GridSouth control of
8 their transmission facilities and set out the general operational relationship between the
9 GridSouth entity and each of Duke, CP&L and SCE&G; the Market Monitoring Protocol;
10 the Operations Protocol that addressed congestion management, parallel path flows,
II ancillary and energy imbalance services and detennined the methodology for A TC
12 calculations; the Planning Protocol; and GridSouth's OATT that included a detailed
13 description of the rates, rate designs used, a proposal for calculating service rates and
14 charges as well as the GridSouth Transmission Service Charge fonnula rate; and the
15 testimony of several expert witnesses.
16 On November 3, 2000, the three GridSouth Sponsors filed a petition for declaratory order
17 with the FERC seeking approval of their proposed accounting treatment for start-up costs
18 and stated that they anticipated spending over $100 million in start-up costs for the period
19 May IS, 2000 to December IS, 200 I. The FERC granted that petition and accepted the
20 proposed accounting treatment for start-up costs in an order issued January 25, 200 I. In
21 that order, the FERC said that the start-up costs could be accounted for as deferred debits,
22 subject to the accrual of carrying charges and subject to recovery in a future rate case
23 such as this one. The Commission made it clear that the GridSouth Sponsors might seek