Bidding expands to public power
Rural electric cooperatives and other public power entities may well enter the bidding arena this year. In September 1989, Jack Van Mark, acting administrator for the Rural Electrification Administration, issued a memorandum advising co-ops that they must consider all alternatives when they are seeking financing for new capacity. The memorandum specifically calls on the co-ops to prepare formal RFPs and solicit, on a national basis where significant capacity is required, proposals from QFs. The trend toward the use of competitive bidding by investor-owned utilities to award power purchase contracts is expected to continue strongly this year. In 1989, 17 utilities issued requests for proposals (RFPs) for a total of over 5,000 MW of a capacity. Many in the industry continue to express concerns over the workability of competitive bidding programs, particularly the early ones which tended to reward the lowest bid without respect to project risk and performance factors. Utilities serious about obtaining capacity through bidding are already modifying their a process of open negotiated bids may evolve, in which interested developers can attempt to negotiate a contract based on the merits of individual projects.
- OSTI ID:
- 5487635
- Journal Information:
- Independent Energy; (United States), Journal Name: Independent Energy; (United States) Vol. 20:2; ISSN XY987; ISSN 1043-7320
- Country of Publication:
- United States
- Language:
- English
Similar Records
The impact of competitive bidding on the market prospects for renewable electric technologies
Bidding for electric resources: An industry review of competitive bid design and evaluation: Final report, May 1989
Related Subjects
200600* -- Fossil-Fueled Power Plants-- Economic
Industrial
& Business Aspects-- (1990-)
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000 -- Energy Planning & Policy-- Electric Power
BIDS
CAPACITY
COMPETITION
CONSTRAINTS
CONTRACTS
COOPERATIVES
ELECTRIC POWER
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
FINANCING
INDUSTRY
LEGAL ASPECTS
LOAD MANAGEMENT
MANAGEMENT
NEGOTIATION
POWER
PUBLIC UTILITIES