FERC Filings

COMMENTS OF THE ELECTRIC POWER SUPPLY ASSOCIATION re PROPOSED PRICING POLICY FOR EFFICIENT OPERATION AND EXPANSION OF THE TRANSMISSION GRID

INTRODUCTION

The Electric Power Supply Association (EPSA) appreciates the opportunity to comment on the Federal Energy Regulatory Commission’s (FERC or Commission) Proposed Pricing Policy for Efficient Operation and Expansion of the Transmission Grid issued on January 15, 2003 (Policy Proposal). The Policy Proposal is designed to address two well-documented problems: the unwillingness of some transmission owners to expeditiously join an RTO or otherwise accede to independent control and operation of the transmission system, and the serious under investment occurring in transmission and distribution infrastructure. While both problems will presumably resolve themselves as the Commission moves ahead with its initiatives to promote both RTOs and market designs that send efficient price signals, the Commission is right to be concerned with the pace at which those initiatives are producing needed changes and a more creative approach, including an array of regulatory incentives, is certainly warranted.

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