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EPSA URGES FERC TO REJECT MISO'S REQUEST FOR PERMANENT INTERVENTION IN THE WHOLESALE MARKETPLACE

"MISO's request flies in the face of the need for accurate market-based price signals"

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today filed a motion for leave to intervene and protest with the Federal Energy Regulatory Commission (FERC) concerning a July 20, 2007, request from the Midwest Independent System Operator, Inc. (MISO) for a permanent extension of certain mitigation measures that interfere with the development of competitive, market-based wholesale power prices.

"FERC initially granted approval for these mitigation measures on a temporary basis and in the last short-term extension set a high bar for any further extension. EPSA shares FERC's previously stated concerns with MISO's approach. The latest MISO request utterly fails to make a compelling case for an extension, much less a permanent one," said EPSA President and CEO John E. Shelk.

"MISO's request flies in the face of the need for accurate market-based price signals so that power generators can operate existing power plants and invest in new ones as needed. This is critical in light of recent record levels of electricity demand, projections of future needs, and rising costs facing power suppliers," Shelk added.

In its filing, EPSA stresses that MISO's requested ability to artificially control market-based power prices for so-called "Broad Constrained Areas" ignores other tools MISO has to properly address any market power concerns. Furthermore, EPSA notes that MISO's market design is already prone to over-mitigation of market-based prices because it lacks sufficient resource adequacy requirements, while preventing wholesale prices from fully reflecting underlying supply and demand. Finally, EPSA stresses that a permanent extension is not warranted when conditions in MISO will change over time as MISO addresses several pressing issues related to transmission congestion, further making the requested mitigation authority unnecessary.

A copy of EPSA's full filing is available at www.epsa.org.

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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.