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EPSA Makes Four Filings on Key Issues
"...[T]he NOPR would address the problem that has confronted a number of EPSA's members with respect to potential obligations to file notifications of change in status regarding, or to observe restrictions on transactions with, "affiliates" of which they may have little or no knowledge and over whose activities they have no control whatsoever."
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today filed four sets of detailed comments with the Federal Energy Regulatory Commission (FERC) on a wide variety of issues with important impacts on competitive wholesale electricity markets.
In response to an EPSA Petition for Guidance filed in 2008, earlier this year FERC issued proposed rules on levels of ownership an entity could have in non-affiliated companies before triggering "control" and "affiliation" thresholds for market-based rate requirements. In comments filed today, EPSA stated strong support for the Commission's proposal to implement a mechanism which creates a rebuttable presumption that an investor does not control a company with market based rate authority if it owns less than 20 percent of the company's voting securities and has affirmed that it has no intention of changing or influencing control of the company. The proposed rule would grant a new blanket authorization for transactions covered by an affirmation and exemption from requirements applicable to "affiliates" under the Commission's market-based rate regime. EPSA's comments also suggest limited modifications including an alternative means for companies to obtain an exemption from the affiliate requirements if their investor does not file an affirmation with FERC, but allowing the company to make the same affirmations with regard to control.
EPSA's comments said, "...[T]he NOPR would address the problem that has confronted a number of EPSA's members with respect to potential obligations to file notifications of change in status regarding, or to observe restrictions on transactions with, "affiliates" of which they may have little or no knowledge and over whose activities they have no control whatsoever. It would also provide relief from FPA Section 203 requirements that could apply to such entities or their investors, notwithstanding the fact that the investors do not control the public utilities in any relevant sense. EPSA greatly appreciates the considerable time and effort that clearly went into formulating the NOPR, and strongly supports the proposed rule changes."
EPSA also filed comments today on FERC's proposal to standardize credit reforms across the organized wholesale electric markets, including whether to designate the RTO as a counterparty to transactions. EPSA asks FERC to more clearly define the problem it is attempting to resolve with the counterparty proposal, and open a separate proceeding to develop a robust record from interested parties. EPSA also supports several of the Commission's other proposals, including moving to weekly settlement periods, limiting the amount of unsecured credit and standardizing certain collateral requirements. On FERC's Notice of Inquiry (NOI) on electricity market transparency, EPSA responds to several questions posed by the Commission concerning existing electric quarterly reports (EQR). EPSA also filed comments on FERC's NOI on transmission loading relief (TLR), commending FERC for focusing on this issue in order to address TLRs in a coordinated manner with the industry initiatives currently underway. EPSA pointed out the lack of transparency regarding TLR use and the ongoing potential discrimination in regions without organized markets.
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.