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
Page 160fl7
Exhibit No. SCE-6
(vii)
Establishing and maintaining staffing levels appropriate for each stage of the
2
development of the RTO; and
3
(viii)
Negotiating contracts with terms that included clear deliverables, milestones and
4
penalties for non-performance.
5
6
The GridSouth project proceeded within budget and successfully maintained an
aggressive time line. Had regulatory policy remained supportive, GridSouth was on target
7
to begin operations as a fully functional RTO on April!,
2002. When the FERC's
8
9
10
II
12
policies changed in the summer of 200 I, the management team prudently scaled back
operations to allow completion of committed and ongoing software and other
development projects while minimizing costs and keeping options open. And, as I have
previously stated, once it appeared unlikely that GridSouth would commence operations,
the facility was sold to further mitigate expenses_
13
14
15
16
All of GridSouth's expenses were in response to the Commission's directions and
guidance. Moreover, the Public Service Commission of South Carolina has approved the
recovery of GridSouth expenses in retail rates. The Commission, having directed the
activities which led to these expenditures, should do the same.
17 Q.
18
PLEASE DESCRIBE METHODOLOGY FOR CALCULATING AND
RECOVERING THE PROPOSED CHARGES.
19 A.
20
21
The methodology for calculating and recovering the proposed amortization of SCE&G's
GridSouth RTO cost based on the GridSouth costs that I discuss in my testimony is
described in the testimony of SCE&G witness Alan C. Heinz.