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EPSA RECOMMENDS MODEL STATE RULE ON COMPETITIVE PROCUREMENT TO STATE UTILITY COMMISSIONERS

"Competitive Procurement Is a Transparent, Robust Mechanism To Ensure the Best Possible Resources Are Used to Meet Customers' Needs"

ANAHEIM, CA - An Electric Power Supply Association (EPSA) survey of "best practices" used in states that have competitive procurement for electric power resources identified several common fundamentals that it recommended as elements of a model state rule for the National Association of Regulatory Utility Commissioners (NARUC) and Federal Energy Regulatory Commission (FERC) at its annual conference here this week. EPSA's model state rule and best practices survey are intended to provide useful facts to NARUC and FERC as they continue their joint dialogue examining competitive procurement of electricity resources.

"EPSA's survey shows that each of the sampled competitive procurement states has developed a strong framework for a transparent and robust competitive process,'" EPSA President and CEO John E. Shelk said. “The competitive process differs among the states, but in each case is designed to meet electric consumers' needs and to ensure that the best possible and lowest risk option is obtained."

The Best Practices Survey identified five elements that characterize competitive bidding regimes: integrated resource/least cost planning; a Request for Proposal (RFP) process; independent oversight; clearly defined role for the utility; and procurement of renewable power resources. Based on the survey, EPSA presented a model rule for NARUC's consideration that addressed issues such as development of an integrated resource plan, guidelines for the RFP process, establishment of an independent monitor and the role of the load-serving entity (LSE).

Shelk said, "EPSA is a strong supporter of the joint dialogue between NARUC and FERC. We look forward to the continued dialogue between NARUC and FERC and a strong final product emerging."

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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.