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Letters to the Editor

Fortnightly Magazine - December 2007

recently move in the opposite direction, which is detrimental to the long-term interests of ratepayers and to the state business climate.

—John Ferguson, PE and Certified Depreciation Professional, Richardson, Texas, johnferg@swbell.net

The Editor Responds:

Mr. Ferguson is correct about the Red Rock solicitation; I misread the Oklahoma Corporation Commission filings. AEP subsidiary Public Service of Oklahoma issued an RFP, and as a result awarded a contract to Oklahoma Gas & Electric Co. to build the Red Rock plant. I apologize for my error of fact.

Oklahoma regulators saw deficiencies in PSO’s solicitation, such that they questioned whether it was really an open and transparent competitive bid. For its part, PSO argued it was not required to issue an RFP. The commission’s decision validated that argument, with the caveat that an opaque bid wins little favor with regulators.– MTB

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