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

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Charles A. White
Docket ER I0- -000
Page 140fl7
Exhibit No. SCE-6
2000, a fully functional RTO. The major projects that were key to insuring GridSouth's
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operational viability included (i) commercial operations and customer interface; (ii)
system operations and planning; (iii) information technology; (iv) human resources and
recruiting; and (v) operation facilities. GridSouth entered into many contracts with
vendors to supply the computer hardware and software for these programs and to assist
with recruiting and staffing. GridSouth entered into a contract with a leasing and
construction company for that company to purchase land and construct a building at Fort
Mill South Carolina that would serve as the GridSouth headquarters and control center.
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By mid 2002, with the preparation of the cost benefit study for the southeastern state
commissions and the Commission's rulemaking on standard market design, the
GridSouth Sponsors decided to suspend their efforts toward creating a fully functional
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RTO pending further clarification of the regulatory requirements.
Over the next twelve
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months, all GridSouth employees were terminated as were all vendor contracts.
appeared unlikely that GridSouth would ever become operational, the GridSouth
Once it
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Sponsors mitigated the facilities expense by selling the assets (the land and building)
associated with the facilities project- Exhibit SCE-7 itemizes GridSouth's expenditures
by month from January 200 I through December 31, 2003.
18 Q.
WERE GRIDSOUTH'S EXPENSES REASONABLE AND PRUDENT?
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Yes. 1have already described the effort required to develop the initial and compliance
filings with the FERC and the participation in the Southeastern RTO regional mediation.
The effort to develop the computer software and the facilities to operate GridSouth began
in late October/early November 2000. It was necessary to start at that time in order for