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

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Charles A. White
Docket ER1 0- -000
Page 11 of17
Exhibit No. SCE-6
rate recovery in the future for the deferred debits, but would have to show at that time
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that the costs were reasonably
incurred.
3 Q.
4
PLEASE DESCRIBE THE GRIDSOUTH COSTS THAT SCE&G SEEKS TO
RECOVER.
5 A.
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7
8
9
10
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SCE&G's expenditure for GridSouth is $13,566,274 plus carrying charges of$I,596,251.
This represents SCE&G's 17% share of the total costs the GridSouth Sponsors incurred
forming the GridSouth RTO and trying to develop it as a fully operational RTO by the
December 15,2001 deadline mandated by the Commission's Order No. 2000. GridSouth
began accumulating costs on May 15,2000, in accordance with the Commission's
January 25, 2001 accounting order; SCE&G's total costs of$15,162,525 million are its
GridSouth expenditures and carrying costs through December 31, 2003.
12 Q.
PLEASE DESCRIBE THE GRID SOUTH EXPENDITURES.
13 A.
14
15
16
17
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Under the GridSouth Limited Liability Agreement, SCE&G was responsible for 17% of
all GridSouth costs. GridSouth used the funds contributed by the GridSouth Sponsors
(including SCE&G) for the many projects required for a fully operational RTO. Initially,
these costs included legal fees, consulting fees, labor costs, travel, housing and other
business expenses as the GridSouth Sponsors conceived, sought authorization for and
developed the GridSouth RTO. Outside counsel and consultants provided extensive
services and worked closely with employees of the GridSouth Sponsors during every step
ofthe process. Some of the areas in which the outside counsel and consultants were
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involved
were: