MASSPOWER gets reprieve
A bid by MASSPOWER has been reinstated as a competitor in Western Massachusetts Electric Co.'s (WMECo) Oct. 1988 RFP for 54 MW. MASSPOWER's bid consists of a proposal to develop, construct, own and operate a 225 MW gas-fired cogeneration facility, with power being sold to Boston Edison Co., Commonwealth Electric, the Massachusetts Wholesale Electric Co. as well as 54 MW to WMECo. The utility argued that MASSPOWER's offer for fixed pricing components in dollars/kWh per month conflicted with the section of the RFP stating QFs must agree to be paid on a dollar per kWh basis. Also, the utility argued, the bid's reliance upon the average fossil fuel costs index of the New England Power Pool for determining variable energy costs was inconsistent with thee RFP, which requires the proposal to bear a reasonable relationship to the utility's avoided costs. The Massachusetts Department of Public Utilities rejected WMECo's arguments, determining that the bid's method of determining variable price does bear a reasonable relationship to WMECo's fuel prices, and that the RFP carries no explicit prohibition of the bid's dollar/kWh per month price format. The paper discusses possible impacts this decision will have on the bidding process and describes several approaches to competitive bidding being used elsewhere.
- OSTI ID:
- 6287572
- Journal Information:
- Independent Energy; (USA), Journal Name: Independent Energy; (USA) Vol. 20:4; ISSN 1043-7320; ISSN XY987
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
200600* -- Fossil-Fueled Power Plants-- Economic
Industrial
& Business Aspects-- (1990-)
BIDS
CANADA
CAPACITY
CHEMICAL REACTIONS
COGENERATION
COMBUSTION
COMPETITION
COST
DECISION MAKING
DEUS
DUAL-PURPOSE POWER PLANTS
ECONOMIC IMPACT
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY SOURCES
ENERGY SUPPLIES
ENERGY SYSTEMS
EVALUATION
FEDERAL REGION I
FEDERAL REGION IV
FEDERAL REGION X
FLEXIBILITY
FLORIDA
FLUIDS
FOSSIL FUELS
FUEL GAS
FUEL SUPPLIES
FUELS
GAS FUELS
GASES
LOAD MANAGEMENT
MANAGEMENT
MASSACHUSETTS
MECHANICAL PROPERTIES
NATURAL GAS
NORTH AMERICA
ONTARIO
OWNERSHIP
OXIDATION
POWER
POWER GENERATION
POWER PLANTS
PRICES
PUBLIC UTILITIES
SELLBACK
STEAM GENERATION
TENSILE PROPERTIES
THERMOCHEMICAL PROCESSES
USA
WASHINGTON