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EPSA Requests FERC Rehear PJM & MISO Demand Response Compliance Filings
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today filed two separate requests for rehearing with the Federal Energy Regulatory Commission (FERC) concerning implementation of FERC's controversial demand response compensation scheme in two of the nation's largest regional markets that together provide electricity for tens of millions of Americans. The requests refer to the PJM Interconnection (PJM) that covers all or part of 13 states and the District of Columbia, and the Midwest Independent Transmission System Operator (MISO) that covers all or part of 11 states and the Canadian province of Manitoba.
On December 15, 2011, FERC conditionally accepted the compliance filings submitted by PJM and MISO in response to FERC's issuance of Order 745 on March 15, 2011, requiring most customers to subsidize the demand response programs of a few, usually larger electricity users. EPSA filed for judicial review of Order 745 in the U.S. Court of Appeals for the District of Columbia Circuit on December 23, 2011. While EPSA had requested that FERC hold compliance in abeyance until the significant and lengthy issues on appeal are resolved, FERC required compliance despite the uncertainty over whether Order 745 will survive judicial review.
In commenting on today's filings, EPSA President and CEO John E. Shelk said, "EPSA reiterates its view that demand response can and should play an economically rational role in the nation's regional energy and capacity markets. However, FERC’s actions in the PJM and MISO compliance filings compound the numerous economic and legal flaws in the underlying Order 745."
Shelk continued, "A major threshold issue in both the PJM and MISO cases is what constitutes demand response. While advertised as a reduction in demand, FERC's orders in these cases prove once again that behind-the-meter generation masquerading as 'demand response' will be subsidized. This is contrary to the Federal Power Act's requirement for non-discrimination. To tilt the scales toward generation outside the regional wholesale markets undermines those markets' consumer benefits while likely making it harder to achieve environmental objectives. This is particularly unwise in light of trade press reports this week highlighting flaws found by FERC in a recent audit of a major demand response provider and noting PJM staff questioning the long-term availability of demand response at existing levels." EPSA's filings are 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.