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EPSA Sends Letter to Congress on Climate Change and Energy Trading
EPSA Sends Letter to Congress on Climate Change and Energy Trading
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) this week sent a letter to Senate Committee on Environment and Public Works Chairman Barbara Boxer (D-CA) supporting passage of a cap-and-trade bill to regulate greenhouse gas emissions (GHG) consistent with EPSA's previously released policy principles.
Commenting on the letter EPSA President and CEO, John E. Shelk, said "EPSA is proud to have been the first national multi-fuel electricity trade association in January 2007 to support federal legislation to reduce GHG emissions and we look forward to continuing to work with Congress on this historic legislation. EPSA believes that a market-based approach to GHG regulation provides the best opportunity for innovation and lowest reasonable costs to consumers over the long-term. Inclusion of our guidelines for allocations to LDCs as well as allowances to merchant coal generators and merchant generators under long-term contracts are necessary to ensure an efficient transition to a lower-carbon economy."
EPSA also sent a letter this week to House Committee on Agriculture Chairman Collin Peterson (D-MN) and House Committee on Financial Services Chairman Barney Frank (D-MA) supporting increased transparency and regulation of the over-the-counter (OTC) derivatives markets while urging a balanced approach that would not unnecessarily force centralized clearing of all derivative transactions. The letter stated, "Simply put, electricity suppliers have a legitimate need to engage in bona fide hedging in the OTC markets. The overly broad imposition of mandatory clearing requirements would impose large and untenable cost increases on businesses and consumers, reduce market liquidity, increase costs and severely limit the product and service offerings companies can provide to energy consumers."
Shelk noted that "EPSA has been an active participant in discussions of how to effectively ensure the integrity of derivatives markets both in Congress as well as at the Commodity Futures Trading Commission where I participate on the Energy and Environmental Markets Advisory Committee. As evidenced by the unprecedented collaboration of 15 trade associations, including EPSA, which sent a letter on these trading issues to every member of Congress this summer (EPSA Press Release, July 10, 2009), the regulation of energy trading is of critical importance to the economy. Competitive suppliers continue to be committed to working with Congress and the Administration to ensure transparency and oversight of these markets in a manner that allows for continued efficient plant operations and necessary infrastructure investment."
Letter to Senator Boxer
Boxer Letter Attachment: LDC White Paper
Letter to Congressmen Peterson & Frank
Peterson & Frank Letter Attachment: Joint Association Letter
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.