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EPSA Files Comments With Maryland PSC On Proposed Mandatory Supply RFP

WASHINGTON, DC - Today the Electric Power Supply Association (EPSA) filed detailed comments with the Maryland Public Service Commission (Maryland PSC) showing there is no need to order the state's utilities to burden consumers with power generation contracts as proposed. The comments were filed in advance of the Maryland PSC's January 31, 2012 hearing to determine whether need can be established to justify its plans to order up to 1,500 megawatts be acquired from newly-built power plants under certain long-term contracts.

EPSA's comments stress the following points:

"EPSA represents operators of existing plants and developers of new ones responsible for keeping the lights on in Maryland for decades, making investments largely at investor risk, not on the backs of consumers, and employing tens of thousands of individuals in the process."

"...[T]here should be a high bar set for establishing need and the burden should be on those seeking the RFP because if the State ventures down this road it will undermine the competitive wholesale market to the detriment of the State's consumers and economy, and such a burden is not met here."

"EPSA therefore urges the Commission not to proceed further with the RFP process, and instead rely on competitive markets to provide the least-cost, long-term solutions - when necessary - for Maryland consumers, with improvements to regional market rules as necessary. EPSA has recently published a statement of principles to address the importance of competitive markets and their design and to highlight how industry and policymakers should focus on improving market design and rules to ensure a reliable power grid..."

EPSA's comments address the eight risks the Maryland PSC identified as justifying the RFP, showing instead how the RFP would hurt, not help. EPSA President & CEO John E. Shelk has asked to participate in the January 31 hearing. A copy of the filing is available at www.epsa.org

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.