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EPSA Finds a Lack of Facts, Law and Focus in FERC Filing by Dissatisfied Group
"Regrettably, this group's filing contained neither solutions nor a serious approach to improving wholesale electricity markets"
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today filed supplemental comments on organized wholesale electricity markets with the Federal Energy Regulatory Commission (FERC) that evaluate comments filed in December by a group dissatisfied with current electricity prices.
"EPSA and its members are committed to practical solutions to serious issues; regrettably this group's filing contained neither solutions nor a serious approach to improving organized wholesale electricity markets," EPSA President and CEO John E. Shelk said. "As we say in our comments, the complaining groups brief filing presents only repetitious comments with no new information or proposals. It offered no additional evidence, solutions or alternatives to move the discussion forward at FERC."
EPSA wrote in its comments to FERC, "The [December 17th] filing lacks facts, law and focus." According to EPSA, "The procedural nature of the groups filing is unclear. The concern appears not to be with a particular market practice, but generally with electricity prices in all of the RTO/ISO markets."
Shelk said, "It's easy to take cheap shots, but what will benefit consumers are well thought-out solutions to what is really challenging energy markets: the factors that are increasing the cost of all forms of energy." EPSA pointed out that legitimate factors are causing prices to rise in RTO and non-RTO markets, due to fundamental issues involving fuel cost increases; higher construction and labor costs; soaring commodity prices for steel, cement and other raw materials; generation and transmission siting; and the regulation of greenhouse gas emissions.
EPSA added that the December 17th filing is factually incorrect in asserting there has been no new investment or generation in the RTOs. Data from New England ISO, PJM and ERCOT points to significant investment and capacity expansions. The data shows that competitive markets are spurring investment in renewable energy, demand response and traditional generation capacity.
According to a 2007 Cambridge Energy Research Associates study, as much as $900 billion in new infrastructure must be built over the next 15 years to meet growing demand. EPSA said, "Whether in the organized markets that currently serve two-thirds of the nation's consumers or in those areas without the benefits of independent RTOs, these investments require clear rules of the road that permit investors to make long term decisions. Complaints without solutions only hinder investment at a time when capital markets are seeking assurances about the future regulatory construct." EPSA's filing is available on the EPSA web site at www.epsa.org under "Recent Filings."
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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.