Competitive negotiation: the Virginia SCC's model for procurement of generating capacity

Journal Article · Mon Feb 01 04:00:00 EST 1988 · Cogener. Small Power Mon.; (United States)

OSTI ID:5073240

The Virginia SCC, in approving competitive alternatives to avoided costs under PURPA, rejected competitive bidding in favor of competitive negotiation for power sales contracts. The difference is important, and points in the direction of increased discretion for utilities seeking new generating capacity from independents. The distinction between competitive bidding, and competitive negotiation, in a nutshell, is that in a bid, the low price bidder wins. In a negotiation, the offeror of the most-meritorious proposals are ranked, and an attempt to reach agreement on price is made with the high-ranked offeror. Only if there is no agreement on price will the most-meritorious bid be rejected, and negotiations with the offeror of the next best proposal begun. The Virginia Public Procurement Act, Sec. II-37, Definitions, Parts 1, 2, and 3.a. is included.

• OSTI ID: 5073240
• Journal Information: Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States); ISSN CSPME
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
BIDS
COMPARATIVE EVALUATIONS
COMPETITION
DECISION MAKING
FEDERAL REGION III
NEGOTIATION
NORTH AMERICA
POWER GENERATION
PROCUREMENT
USA
VIRGINIA