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EPSA ASKS FERC TO REJECT UNWISE PROPOSAL TO CEASE REACTIVE POWER COMPENSATION IN THE MIDWEST

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today filed a request with the Federal Energy Regulatory Commission (FERC) asking the Commission to reject a proposal to allow transmission owners the choice of whether or not to compensate generators for reactive power in the Midwest Independent System Operator (MISO) footprint.

EPSA's filing asserts that this proposal, set forth by the MISO transmission owners, proposes to substantially change the MISO tariff without having undergone a stakeholder process. EPSA asks FERC to reject the proposal on the grounds that the MISO stakeholder process rejected a similar proposal on reactive power compensation once before, that MISO did not join the transmission owners in this Section 205 filing, and that the transmission owners should not be able to unilaterally make a substantial change in an RTO's tariff without a consensus from other stakeholders.

"The issue of reactive power compensation was brought before the MISO stakeholder process once before," said EPSA President and CEO John E. Shelk, "and the stakeholders clearly choose fair and comparable compensation as a policy for the Midwest."

A copy of the 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.