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FERC Commissioner Wellinghoff States Support for Competitive Electricity Markets to 'Enable Consumer Choices'

'No longer agnostic,' said FERC Commissioner Jon Wellinghoff

WASHINGTON, D.C. - Federal Energy Regulatory Commissioner Jon Wellinghoff expressed his strong support for competitive electricity markets today in remarks before a gathering of electricity customers, energy experts and scholars. Saying he was "no longer agnostic," Wellinghoff detailed the reasons for his support. "Competitive markets are the only way to provide consumers with just and reasonable prices and the lowest total bill," he said.

Wellhinghoff was the keynote speaker at a forum sponsored by the COMPETE Coalition and Electric Power Supply Association (EPSA), entitled: "Empowering Consumers Through Competitive Markets: The Choice is Yours." The forum also included two panel discussions on ways consumers are engaging in electricity markets, and research findings that illustrate the benefits of competition for consumers and the environment.

"Competitive markets have been great incubators for innovation," said COMPETE co-chair Ron Kirk. "We are on the cusp of an explosion of technological innovation that will be spurred by competition."

EPSA President and CEO John Shelk said: "We must move beyond the debate of whether competitive markets provide benefits to consumers - they do - and identify the real tools to meet future needs, as was discussed today."

Panelists addressed the benefits of competitive electricity markets from the consumer perspective, the implications of new research findings, and took questions from the audience. The full forum is available via webcast here.

Allen M. Freifeld, Commissioner of the Maryland Public Service Commission, moderated a panel that focused on demand response, and the benefits consumers are realizing by participating in competitive electricity markets and adjusting their consumption based on transparent market signals.

"The renewed interest in energy efficiency and conservation holds great promise for consumers and for the economy," said Freifeld. "The efforts being undertaken now will provide consumers with the tools they need to control their energy costs and will foster more efficient use of the national grid."

Panelist Stephen Brennan, Director of Maintenance and Operations for the Pratt Institute, discussed the benefits of demand response technologies from a customer point of view.

"By eliminating 400 megawatts from the grid, all New York State consumers can enjoy lower electric prices during the event time; we prevent blackouts, and we reduce the level of voltage drop that utilities may need to take, thus preventing many millions of dollars in potential damage to businesses’ equipment and loss in operation time," said Brennan.

Jeffrey M. Bladen, General Manager of Market Strategy at PJM Interconnection discussed the enthusiasm for demand response technology he has seen among customers.

"Demand Response in PJM has grown by leaps and bounds in the last couple years, but remains an underrepresented resource," said Bladen. "We must continue our efforts and actively develop demand-side response as part of the daily fabric of our electricity grid."

University of Maryland Professor of Economics Peter Cramton moderated a panel on the environmental and economic benefits of competitive markets.

"Good market design means anticipating and addressing potential market failures," said Cramton. "To motivate demand response, consumers must see and feel the hourly spot price. Fortunately, this can happen without exposing consumers to additional risk."

MIT economics professor and panelist, Nancy Rose, stressed that these benefits to consumers can be immediate and long-term. "The evidence suggests that restructuring increases efficiency and reduces costs at existing generating plants – even before any long-run benefits of improved investment incentives kick in. These generate real benefits for today's electricity customers."

<center>EPSA</center>

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.