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EPSA PRAISES NEW REPORTS HIGHLIGHTING BENEFITS OF ORGANIZED ELECTRICITY MARKETS

WASHINGTON, D.C. - John E. Shelk, President and CEO of the Electric Power Supply Association (EPSA), welcomed three new reports issued today by the ISO/RTO Council, the organization that represents the 10 Independent System Operators and Regional Transmission Organizations in North America, serving over two-thirds of electricity consumers in the United States. Shelk issued the following statement:

"These reports prove what advocates of competitive markets have been saying all along - organized markets are working efficiently while producing numerous benefits for consumers. Wholesale prices of electricity were lower by double digit percentages in 2006 compared to 2005, even while organized markets were meeting record demand throughout the United States.

"Transparency provided by open markets has provided accurate price signals for new generation investment. The reports confirm that between 2001 and 2006 over 110,000 megawatts of new generation was brought into commercial operation. Moreover, approximately 300,000 megawatts of new generation is currently proposed in ISO and RTO regions, 44 percent of which represents renewables. Transparency has also allowed demand response to take off, with more than 23,000 megawatts participating in organized markets, equal to 4.5 percent of demand.

"All metrics are predicting that the United States needs significant investment in its electricity infrastructure. These reports show that, while improvements can always be made, ISOs and RTOs are largely effective in setting accurate incentives and will continue to play a key role in encouraging investment in renewables and demand response, which are attracting increasing interest among consumers and policymakers alike. As the national advocate for competitive suppliers that largely operate in these markets, EPSA welcomes these reports as further evidence that these markets are good for consumers and the environment."

Copies of the three reports can be found at www.iso-rto.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.