Meeting the Northwest's Energy Needs Through Competitive Bidding.

Utilities have traditionally met load growth requirements through building projects (self-build), purchasing power from other utilities, or from running conservation programs. During the 1980s, alternative capacity expansion approaches were developed. Resources are now also obtained through PURPA-based or competitive bidding acquisition programs. Self-build programs typically involve large-scale hydropower; coal-, natural gas-, and oil-fired projects; and nuclear thermal electric generating projects. Characteristics of these projects, in addition to size, include long lead times, capital intensiveness, substantial environmental impacts, and a significant risk of cost overruns. The risk element became immediately apparent to those investor-owned utilities that, because of decreased load growth, had thermal project investments disallowed in rate cases or were forced to terminate projects. Phrases such as prudent investment,'' used and useful,'' and least-cost planning'' became familiar to the utility industry. Many utilities, once burned, subsequently adopted a policy of never again constructing a base-loaded generating plant. 2 figs.