These two groups popped up with a comment this week in the West Virginia Public Service Commission case regarding the issuance of a Request for Proposals for additional power supply for FirstEnergy's Mon Power and Potomac Edison subsidiaries.
The power providers say that the PSC has the authority to require FirstEnergy to issue an RFP for additional supply, and that only an RFP will ensure that Potomac Edison and Mon Power customers get the best price for new generation.
The best and most appropriate manner for this Commission to fully examine potential supply options would be with the use of a broad, competitively neutral RFP in which multiple suppliers could actively compete to meet the needs of West Virginia consumers. This would ensure that all available supply-side and demand-side resources are transparently reviewed in accordance with the state’s applicable rules and laws.
The power providers quoted a research paper prepared by the National Association of Regulatory Utility Commissioners and the Federal Energy Regulatory Commission as support for an RFP:
The first key issue for incremental resource procurements is the design of safeguards to prevent potential improper self-dealing by the utility. Because the utility may financially benefit from the selection of its own self-build offer or a proposal from an affiliate, safeguards are necessary to ensure that the process is not improperly tilted toward the selection of such offers.
What is it FirstEnergy is trying to hide with its opaque self-dealing insistence that the purchase of one of FirstEnergy's own resources is a "good deal" for West Virginians? Sunshine is the best disinfectant!