FERC Filings
Comments of EPSA, Colorado Independent Energy Association, Independent Energy Producers of California, IPPNY and WPTF re: Public Utility Market-Based Rate Authorizations
The Commission Should Consider Some "Safe Harbor" Options
As it may be very difficult to definitively identify all types of market behavior that the Commission wishes to preclude by these rules, Competitive Suppliers urge the Commission to provide as much specificity as possible in the Final Order, perhaps even providing scenarios that explain,with real world examples, more detail about what is and is not acceptable. Commission staff could outreach to market participants and RTO/ISO market monitors to develop realistic scenarios to which these rules could then be applied. After the rules are promulgated, a technical conference designed around these scenarios could give all market participants greater confidence in how the Commission intends the rules to be applied.
In addition, the Commission should consider granting a “safe harbor” from its Market Behavior Rules where the independent market monitor of the applicable power market determines that no corrective action is appropriate and proceeds through a proposed rule change instead. Such an approach would reflect the fact that wholesale power markets are dynamic and changing over time. What is an appropriate market rule today may not meet the needs of tomorrow. In that instance, the Commission should change the market rules, not order retroactive refunds.
Finally, it is important that any market behavior rules developed be reevaluated regularly to address changing market needs and dynamics over time. This should include regular input from market participants who are experiencing and conducting business in the maturing competitive wholesale marketplace.