Fairness of PGE bids to acquire more electricity questioned

By Ted Sickinger, The Oregonian

on October 17, 2012 at 6:11 PM, updated October 17, 2012 at 8:52 PM

Independent power producers are questioning the fairness of Portland General Electric's bidding process to acquire new electricity resources, and are asking energy regulators to step in to ensure the integrity of the process.

PGE is looking to build or buy a variety of new energy resources, including both baseload power -- likely a large, natural-gas fired power plant that runs year round -- as well flexible resources to meet peak and seasonal demand. It issued a request for proposals earlier this year and is set to announce a shortlist of bidders next month.

PGE is required to put all such acquisitions out to bid, and the perennial complaint from outsiders is that the bid process favors the utility's self build option. There's a lot of money at stake, including the opportunity to earn a relatively low risk but generous authorized rate of return from ratepayers on hundreds of millions of dollars in new investments.

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