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EPSA Opposes Commission Proposal to Mandate Counterparty Status for All ISOs and RTOs

"The record in this proceeding is simply not sufficient to support a national mandate that ISOs/RTOs function as central counterparties... At this point, the next reasonable step for the Commission is to define precisely the mutuality problem and ask ISOs/RTOs to propose
stakeholder-driven solutions to that problem."

WASHINGTON, D.C. - On Tuesday, the Electric Power Supply Association (EPSA) filed comments with the Federal Energy Regulatory Commission (FERC) opposing a mandate that all independent system operators (ISOs) and regional transmission organizations (RTOs) become central counterparties to the transactions that occur in their markets. FERC had suggested the change as part of a larger credit reform proposal that sought to change settlement timeframes and collateral posting requirements.

EPSA's comments respond to a May 11, 2010 technical conference that FERC held to discuss the counterparty proposal. The comments note that the Commission's counterparty proposal is not sufficiently developed, nor are the concerns sufficiently defined, to warrant a national mandate of a specific solution.

"The record in this proceeding is simply not sufficient to support a national mandate that ISOs/RTOs function as central counterparties," EPSA's comments said. "At this point, the next reasonable step for the Commission is to define precisely the mutuality problem and ask ISOs/RTOs to propose stakeholder-driven solutions to that problem."

EPSA also submitted separate joint comments with the American Public Power Association, the Edison Electric Institute and the National Rural Electric Cooperative Association opposing FERC's proposal to nationally mandate counterparty status. Instead, the joint comments ask FERC to further define the concerns to be addressed and allow regions to work with stakeholders on appropriate solutions.

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.