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EPSA SECURES SIERRA PACIFIC'S AGREEMENT TO LIMIT WAIVER OF OPEN ACCESS TRANSMISSION RULES
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) is pleased that Sierra Pacific Resources Operating Companies (the Nevada Companies) agree with EPSA that a transmission service proposal by Sierra Pacific Resources, conditionally approved by the Federal Energy Regulatory Commission (FERC) last month as a temporary exception to FERC's non-discriminatory power transmission rules, not continue beyond a very clear end date in 2010.
On August 13, 2007, EPSA filed for clarification of FERC's July order that allowed the Nevada utilities to add an unprecedented new transmission service called "Capacity Based Network Service" (CBNS) that provides the companies with preferential status that could harm EPSA members and other wholesale suppliers of electricity in a fast-growing region of the country. On August 28, 2007, the Nevada Companies filed an answer to EPSA's clarification request in which they ask FERC to deny EPSA's request because they concede EPSA's strict interpretation of the sunset date.
"To their credit, the Nevada Companies recognize that the CBNS service should terminate on July 12, 2010, ending the companies’ ability to reserve transmission service in a manner that otherwise would be a violation of FERC's landmark Order 890," said John E. Shelk, EPSA's president and CEO. "Given the importance of Order 890, and the need to prevent other utilities from undermining it, EPSA appreciates the recognition that taking service under this exception is prohibited after July 12, 2010, even if a request is filed before that date," Shelk explained.
"While we are glad that the Nevada companies see eye-to-eye with EPSA on the sunset date, it is puzzling that their pleading misstates EPSA's long held positions on contracting issues," Shelk continued.
Shelk contended, "The goal of a well-functioning wholesale market is to provide sufficient transparent information to allow buyers and sellers to make rational economic decisions. That information allows buyers to assess all alternatives and to choose the best option. The Nevada companies clearly misunderstand this point in their answer. In a well-functioning competitive wholesale market, robust short and long term markets work together to send clear price signals that inform the overall market -- market intervention that tilts the scales towards any particular contract length is damaging to the overall marketplace. A range of long and short contracting alternatives works best for consumers."
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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.