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COMMENTS OF THE ELECTRIC POWER SUPPLY ASSOCIATION ON NOTICE OF PROPOSED POLICY STATEMENT ON STANDARD OF REVIEW FOR PROPOSED CHANGES TO MARKET-BASED RATE CONTRACTS FOR WHOLESALE SALES OF ELECTRIC ENERGY BY PUBLIC UTILITIES

CONCLUSION

EPSA shares the Commission’s recognition of the need to adopt policies designed to eliminate market uncertainty as quickly as possible, and that clarifying the application of the Mobile-Sierra doctrine would advance this effort. We also fully appreciate the Commission’s need to balance contract sanctity with its statutory duty to ensure that all rates are just and reasonable. However, we urge the Commission to resist the temptation to rely on a lower standard for contractual modification as an indirect, surrogate mechanism for challenges to market-based rate authority. Rather, we respectfully request that the Commission rethink its approach by adopting a policy that maximizes that use of the public interest standard for the review of proposed changes to existing contracts, as proposed by Commissioners Brownell and Breathitt.

September 23, 2002

Respectfully submitted,

Julie Simon, Vice President of Policy
Mark Bennett, Senior Manager of Policy
Electric Power Supply Association

1401 New York Avenue, NW

11th Floor
Washington, DC 20005
(202) 628-8200

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