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

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Alan C. Heintz
Docket ERIO·_-OOO
Page 26 of28
Exhibit No. SCE-8
Southwest Power Pool, 96 FERC ~ 61,034 (2001); Alliance Cos., et al., 94 FERC
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~ 61,070 (2001), order on reh'g, 95 FERC ~ 61,182 (2001). The Commission has
approved a stated rate for network service offered by several other transmission
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providers,
including Sierra Pacific Power Co. and Nevada Power Co. (Docket No.
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ER07-1371-000, 121 FERC ~ 61,160 (2007)); Northwestern Corp. (Docket No. ER07-
46-000, 117 FERC ~ 61,293 (2006)); Sierra Pacific Resources Operating Cos. (Docket
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No. ER03-1328-000,
108 FERC ~ 61,023 (2004)); and International Transmission Co.,
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9 Q.
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II
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LLC (Docket No. EROO-3295-000, 92 FERC ~ 61,276 (2000)).
PLEASE DISCUSS HOW THE FORMULA ACCOMODATES SCE&G'S
PROPOSAL TO RECOVER, BEGINNING JUNE 1,2010, DEFERRED COSTS
("GRlDSOUTH COSTS") IT INCURRED IN THE UNSUCCESSFUL ATTEMPT
TO FORM THE PROPOSED REGIONAL TRANSMISSION OPERATOR,
GRlDSOUTH.
14 A.
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On Attachment 5 - Cost Support, under the section title "Grid South Surcharge Cost
Support", is shown for the year beginning 2004 the GridSouth costs SCE&G incurred
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through 2003.
This balance is discussed and supported in detail in the testimony of
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SCE&G witness Charles A. White, Exhibit Nos. SCE-6 and SCE-7.
Attachment 5 also
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shows the calculation of the carrying charges (at the formula-determined
ROR) for the
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years 2004 through 2009 and the first five months of 20 10. This total - GridSouth costs
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at BOY 2004 plus carrying charges through May of 2010 - is $24,967,230.
It is the
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amount that SCE&G proposes to amortize (beginning June 1, 2010) over the five rateyear
period beginning June 1,2010 and ending May 31,2015, as shown on Attachment 5.