FERC Filings

EPSA Comments On The Establishment and Use of Reference Prices

Conclusion

Any mitigation methodology or principles utilized in the organized markets must include adequate incentives to attract and retain needed investment as well as rates that are not excessive. Without these attributes, even short-term mitigation will simply perpetuate rather than solve the constraints within a market, thwarting the Commission’s goal of promoting robust, competitive wholesale power markets. As the regional organized markets have matured, it is time for the Commission to examine the overall usefulness of the AMP and the CIT and the attendant reliance on reference prices, both to ensure consistency across market designs and to protect against over-mitigation which thwarts price signals. EPSA applauds the Commission’s efforts in this policy analysis and commends to the Commission the discussion set forth above.

Respectfully submitted,

Nancy Bagot, Vice President of Policy
Electric Power Supply Association
1401 New York Avenue, NW
11th Floor
Washington, DC 20005
202) 628-8200

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