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EPSA APPLAUDS OKLAHOMA DECISION TO REJECT ATTEMPT TO THWART A FAIR COMPETITIVE PROCUREMENT PROCESS

Today's decision follows Georgia in stressing the importance of competitive wholesale choices in a rising cost environment for new power plants

WASHINGTON, D.C. - The following is the statement of EPSA President and CEO John E. Shelk in response to today's 2 to 1 decision by the Oklahoma Corporation Commission to reject a request from Oklahoma utilities to pre-approve the self-build of the Red Rock coal-fired power plant in lieu of fair consideration of alternatives offered by competitive electricity suppliers:

"Competitive electricity suppliers are heartened by today's decision in Oklahoma. After rejecting worthy bids from competitive alternatives at largely fixed prices, a joint venture proposed by Oklahoma utilities sought to shift almost all the risk of investment in a new multi-billion dollar power plant to Oklahoma ratepayers.

"EPSA was a party in the earlier proceeding that had put competitive procurement rules on the books in Oklahoma, rules that the utilities sought to avoid by first rushing for approval of their Red Rock project before the rules took effect and then by purporting to hold a bidding process just for show.

"Oklahoma regulators wisely had serious concerns about the abuse of the competitive bidding process that took place. They also indicated concern about the rising cost of the proposed project and what amounted to a request for a blank check when other, less costly alternatives are available in the wholesale market.

"Oklahoma is not alone. Just a few months ago, Georgia regulators rejected an attempt to pre-approve the expansion of a nuclear plant without consideration of all available alternatives. Similar pending cases in Louisiana and Arkansas are also of concern for the same reasons.

"Today's decision proves what EPSA has been saying for months - the problems posed by sharply rising costs and risks occur nationwide, and the solutions lie in more competition, not a return to traditional cost-plus rate regulation."

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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.