Company witnesses at the Public Utilities Commission technical conference explained how utility‑owned projects that may result from the near‑term procurement would be handled under existing performance‑incentive mechanisms and regulatory filings.
The company told commissioners that point-cost estimates, AFUDC and anticipated tax credit assumptions are included in the bid packages and will feed cost‑to‑construct PIM calculations in subsequent CPCN filings. "Those costs should already be reflected in the bid packages," a company witness said. Staff and the utility consumer advocate (UCA) have access to the full bid packages for due diligence, while the commission has not yet seen the full details.
On schedule, witnesses said that if the commission issues a decision in early February, the company would aim to file CPCNs in early Q2, and that under a standard CPCN process 6–8 weeks of preparation is typical for required testimony and attachments. The company also signaled it expects to ask for an approximately 60‑day extension to complete weather‑normalization methodology work used in operational PIM calculations.
The hearing also covered how operational PIMs treat curtailment and potential wake effects from concentrated wind projects. Company witnesses said the operational PIM does not currently include a direct wake/curtailment adjuster; curtailment megawatt‑hours are handled using the same PPA reconciliation methodology and parties retain rights to challenge curtailment decisions in future cost‑recovery proceedings.
Stage 2 relief (tariff relief) was discussed: the joint motion allows up to a 15% price change for tariffs or federal actions occurring after bid date, and the company said the same independent‑auditor review and commission adjudication process used in prior CEP decisions would apply. The company noted that bidirectionality of stage 2 relief applies where stage 1 relief was granted; in the current NTP context there is no presumption of bidirectionality because bidders were expected to price current tariff conditions into their bids.
Provenance: This article is drawn from the PIM/CPCN and weather-normalization portions of the conference (topic start: SEG 962; topic finish: SEG 1319).