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EPSA Encourages State and Federal Efforts to Rectify Entergy's Transmission System

EPSA Encourages State and Federal Efforts to Rectify Entergy's Transmission System

"The June 24 conference identified several short and long term deficiencies that if corrected, could significantly improve competitive opportunities in the Entergy region..."

"...the conference presentations and their associated documentation prove that the status quo remains unacceptable and that the entity controlling transmission in the Entergy region must have more authority to facilitate true open access and ensure adequate infrastructure."

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) filed comments today on the June 24 conference convened in Charleston, South Carolina by the Federal Energy Regulatory Commission (FERC) along with the Arkansas Public Service Commission, the Louisiana Public Service Commission, the Mississippi Public Service Commission, the Public Utility Commission of Texas, and the Council of the City of New Orleans (collectively the States). The EPSA comments supported the collaborative effort of FERC and the States to assess whether Entergy should join the Southwest Power Pool Regional Transmission Organization (SPP RTO) or strengthen SPP as the Independent Coordinator of Transmission (ICT) for the Entergy system.

Significantly, while EPSA supports the Federal and State efforts to assess the best arrangement for running the Entergy transmission system, the comments also stress several actions that can be taken now to ensure open access transmission service and further transmission infrastructure construction. In the short-term, FERC should require Entergy to eliminate the inconsistency in its transmission planning criteria and ensure consideration of all transmission service requests on an equal basis using transparent redispatch criteria. Longer-term, the transmission operator, whether SPP as the RTO or the ICT, needs authority to direct construction of the needed transmission. Additionally, the conference highlighted that the Regional State Committee (RSC), much like the one used in SPP, should be formed as a tool for improving transparency and accountability on the Entergy transmission system.

EPSA President & CEO John E. Shelk said "It is absolutely critical that real reform occur on the Entergy system to provide the benefits of an open, competitive marketplace to customers. The promise of the unique state and federal June 24 conference must be realized soon."

The filing highlighted the conference comments by each of the States, noting the pervasive agreement by each of Entergy's retail regulators that the transmission system was not adequate to provide sufficient competitive opportunities for customers. Importantly, the conference established that the States and FERC see a need to reconsider Entergy's sole decisional authority over what transmission gets built. The EPSA comments highlight planning discrepancies that exist between Entergy's transmission plans compared to the ICT's plans that have played a part in needed transmission not being included in the Entergy construction plan. EPSA states, "Gaining a transparent understanding of why projects that are included in the Base Plan are excluded from the Construction Plan will go a long way in ensuring that there is a clear and shared understanding of what gets built and why."

EPSA Encourages State and Federal Efforts to Rectify Entergy's Transmission System
EPSA Comments on Entergy Technical Conference

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.