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EPSA Joins NEPGA In Sounding Alarm On Connecticut Electricity Proposal

Washington, D.C. - The Electric Power Supply Association (EPSA) today joined the New England Power Generators Association (NEPGA) in urging the Connecticut General Assembly to reject legislation that would harm consumers by interfering with New England's competitive regional wholesale electricity marketplace. EPSA understands that the practical effect of the legislation (SB 1138) would be to grant the State of Connecticut extraordinary authority to enter into no-bid, long-term contracts to purchase Canadian hydro power, putting Connecticut consumers at risk.

"While renewable resources are an important part of the electricity mix, any legislation in this area should be carefully evaluated for its full effects on the state's and region's competitive electricity markets," said EPSA President John E. Shelk. "Given the very nature of electric energy, the electricity sector is physically and financially interconnected in many critical and unique respects. Singling out one type of resource for special treatment by exempting it from the market rules applicable to other suppliers jeopardizes the backbone sources of electricity for Connecticut and the region."

Shelk continued, "Connecticut had the foresight many years ago to give consumers the benefit of multiple sources of electricity that compete to earn their business. That can only work when electricity providers can compete on fair terms. The proposed legislation would put an anvil on the scales for the benefit of a particular project to the detriment of consumers. This would occur by handcuffing consumers to a multi-decade contract regardless of need and whether alternatives prove more cost effective. State law prohibits this misguided approach when even minimal state government purchases are made. Certainly state consumers deserve no less consideration for their pocketbooks when hundreds of millions of dollars are at stake."

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.