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

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Michael J. Vilbert
Appendix B
Docket No. ERI 0- -000
EXHIBIT NO_ SeE-1S
Page B-14
1
2
3
4
5
6
7
8
9
10
II
of this proceeding and is more appropriately addressed in the individual
application proceedings. 32
However, in its Golden Spread decision,3l the FERC seemingly altered course towards
favoring the median and held that:
When deriving the ROE for an individual utility facing average risk, the
Commission has held that the median best represents the central tendency
in a proxy group with a skewed distribution of returns.
As noted in my testimony, however, the Commission's
decision in PSE&G, issued
September 30, 2008, seemed to suggest that it had reverted back towards its earlier
preference for the midpoint.
allowed return based upon the midpoint. 34
In that decision, without comment, the Commission set the
32 See Order No. 679-A, at P 63 n.1 05.
33 Golden Spread Electric Cooperative Inc., 123 FERC 1161,047 (2008) (Opinion No. 50 I), ("Golden Spread')
April 21, 2008.
34 In the PSE&G decision, the Commission accepted my recommend ROE which was based upon the midpoint
of the sample, but the Commission did not otherwise comment on the relevance of the midpoint or the
median.