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EPSA Letter to House Energy & Commerce: Fair and Equitable Allocation of Emissions Allowances Is Critical
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) yesterday sent the attached letter to House Energy and Commerce Committee Chairman Henry Waxman (D-Calif.), House Energy and Environment Subcommittee Chairman Edward Markey (D-Mass.) and respective Ranking Members Joe Barton (R-Texas) and Fred Upton (R-Mich.) expressing the association's views on language in the proposed American Clean Energy and Security Act of 2009 (H.R. 2454) to govern the allocation of greenhouse gas (GHG) emission allowances.
EPSA President and CEO John E. Shelk said, "EPSA commends the House Energy and Commerce Committee for its leadership and commitment to advancing legislation to reduce greenhouse gas allowances. Competitive electricity suppliers account for 40 percent of U.S. electric capacity and generation and, under H.R. 2454, are assigned the obligation to surrender emissions allowances to the federal government each year, therefore it's of critical importance that allowances be allocated or available in a fair, equitable and non-discriminatory manner."
Highlights of EPSA's attached letter to Committee leadership:
- EPSA supports the allocation of free GHG allowance emissions to electricity local distribution companies (LDCs) if there are appropriate safeguards consistent with EPSA's "Proposed Guidelines if Greenhouse Gas Allocations Go to Local Electric Distribution Companies." (EPSA's proposed GHG allocation guidelines are included in the attached letter.)
- EPSA welcomes the opportunity to work with Congress to ensure that electric LDC allowances are sold on fair terms, including by refining and strengthening H.R. 2454 as necessary.
- EPSA supports the provision to set aside a portion of allowances for independent power producers that have entered into long-term contracts and encourages the Committee to address long-term contracts for sales of useful thermal energy in a similar fashion.
- EPSA supports the provision to allocate a portion of allowances to merchant coal generators to help them meet the net cost of their compliance obligations as an essential component of the overall transition mechanism to protect consumers and facilitate investment.
EPSA's letter to the House leaders, a copy of which was sent to each Committee Member, follows on the next pages. EPSA has been on record since January 2007 as supporting federal, mandatory, economy-wide market-based legislation to reduce GHG emissions. For more information, please visit www.epsa.org. EPSA Letter to House Energy & Commerce: Fair and Equitable Allocation of Emissions Allowances Is Critical
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.