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SCE&G balks at bid order
SCE&G has asked the state Public Service Commission to reconsider a recent order that requires the states regulated electric utilities to issue requests for proposals when seeking additional electricity to fulfill peak generation needs.
In September, the commission ordered that the states three electric utilitiesSCE&G, Duke Energy and Progress Energymust use the formal RFP process to determine whether it is more financially viable to buy electricity from another company or to construct additional generators to meet peak demand.
In a petition filed with the commission late last month, SCE&G said it does not oppose using the RFP process when that process is consistent with the overall needs of the company and the timing of the RFP process will not jeopardize the reliability and low cost of electricity enjoyed by consumers in South Carolina.
But SCE&G said mandating the commonly used business practice for securing contracts could crimp the companys ability to make fast and prudent decisions.
Under a formal RFP process, pre-established criteria would replace managerial flexibility and discretion necessary to make timely decisions for adding capacity, the petition reads.
It also could potentially put the company at the mercy of third-party generators, requiring an assessment of that companys financial integrity, business ethics, operational culture and stability, factors that are not susceptible to easy or accurate quantification in a criteria-based RFP, the company argues.
Further, SCE&G states that current law in South Carolina already requires the utilities to consider the open market to satisfy generation needs for peak hours.
The utility suggested that the Public Service Commission instead establish guidelines for the RFP process for securing additional peak generation, but not require it.
The utilities would then have to defend why they felt it was best to ignore that process, SCE&G suggests.
Charlie Terreni, the Public Service Commissions chief administrator, said the commission has been looking at requiring a formalized RFP process for several years.
The Public Service Commission issued a memorandum saying it would decide by Oct. 15 whether to rule on SCE&Gs petition.
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