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EPSA Urges Thoughtful Approach to RTO and Non-RTO Performance Metrics

FERC should focus on developing clear performance metrics and resist the attempts by several entities to use this proceeding to obtain commercially sensitive data in a collateral attack on FERC's well-reasoned findings that market-based rates in RTOs are just and reasonable.

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today filed reply comments with the Federal Energy Regulatory Commission (FERC) supporting the development of metrics to measure the performance of independent system operators (ISOs) and regional transmission organizations (RTOs) as well as the bilateral wholesale electricity markets. The Government Accountability Office (GAO) had recommended that FERC develop clear metrics on the performance of all wholesale electricity markets in a September 2008 report.

EPSA's comments filed today replied to issues raised by other commenters and focused on why there has been a call for RTO metrics in the first place and how best to accomplish that goal. EPSA urged the Commission to maintain a focus on developing clear performance metrics and resist the attempts by several entities to use this proceeding to obtain commercially sensitive data in a collateral attack on FERC's well-reasoned findings that markey-based rates in RTOs are just and reasonable.

The reply comments said that "While EPSA supports this important effort by the Commission to quantify the performance of RTOs as market administrators, many of the comments would have the Commission expand the metrics far beyond the scope or the intent of the GAO's concept of standardized measurements. Much (if not all) of the necessary information is already collected and assessed by the RTOs, and then reported to the Commission in annual State of the Market reports prepared by independent market monitors. Many of the metrics proposed by certain commenters would require the publication or disclosure of data that is competitively sensitive and could present numerous market concerns."

EPSA went on to note that "[T]he GAO did not publish its report so that the Commission could collect and make public a new litany of information (especially one that is slanted towards drawing information from one particular industry sector). The GAO report asks the Commission to analyze certain information across all RTOs in order to assess the performance and document the benefits of RTO markets."

EPSA's reply comments support the Commission in taking the time necessary to develop well reasoned and meaningful metrics for both RTO and non-RTO areas. Only then can the results of the metrics be properly developed and implemented to bring forth necessary reform.

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.