FERC Filings
Reply Comments of EPSA, Independent Energy Producers of California, Independent Power Producers of New York, Inc. and the Western Power Trading Forum re: Investigation of Terms and Conditions of Public Utility Market-Based Rate Authorizations
Introduction
According to the Federal Trade Commission (FTC),
[S]tructurally competitive markets are generally the best remedy for anticompetitive behavior and existing market power in wholesale electricity markets. We continue to encourage FERC to give high priority to achieving structurally competitive markets while it pursues interim measures, if any, to address findings from its investigations of market conduct.
Competitive Suppliers agree. At the same time, Competitive Suppliers and numerous parties have recognized that properly designed and implemented market behavioral rules can improve wholesale market functioning and help establish the certainty needed by all market participants going forward. The key is that any market-wide behavioral rules must provide proper notice to parties as to what constitutes acceptable and unacceptable behavior consistent with Commission-approved market structures. Numerous sets of comments filed in this proceeding echoed this sentiment, focusing on the overarching need for any Market Behavior Rules to be clear, concise, include an intent standard and add to market certainty rather than create additional market uncertainty. Further, any behavior rules should extend to all market participants, including Transmission Owners and Load Serving Entities.
Some suggested changes to the proposed Market Behavior Rules, however, are inappropriate, unworkable and, in some cases, not legally available to the Commission. Four issues that arise from filed comments are herein addressed by Competitive Suppliers:
• The broadening or extension of the disgorgement of ill-gained profits remedy,
• Extension of the 60-day time limitation to file complaints for all parties except the Commission,
• The requirement for a threshold case in order to file a complaint with the Commission,
• Implementation of a national Real-Time Must Offer Obligation.