The Washington Utilities and Transportation Commission (UTC) has refused to mediate a dispute between Washington Water Power Co. and a bidder in the utility's 1991-92 resource procurement auction. The bidder, SESCO Inc., complained after the utility found its demand-side management (DSM) program proposal not cost-effective. The UTC said the decision to close the bidding and not pursue a contract with SESCO was a matter for review in the utility's next general rate case. It explained that its current policy was to allow utility management to determine in the first instance what resources it should build or purchase. The UTC said a ruling on the comparative cost-effectiveness of the SESCO proposal in relation to the company's resource acquisition at the close of bidding would usurp the utility's management function. It added, however, that it plans to investigate whether to adopt rolling prudence reviews, preapproval, or other means of reviewing utility resource decisions. Re Sesco Inc. v. Washington Water Power Co., Docket No. UE930616, Nov. 21, 1994 (Wash.U.T.C.).
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