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FERC's Standards of Conduct Proposal Removes Unneeded Complexity, Provides Improved Guidance, Says EPSA

"The 2008 NOPR represents the simplest and most straightforward solution."

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) praised the Federal Energy Regulatory Commission's (FERC) proposed rulemaking on Standards of Conduct regulations for transmission providers in comments filed yesterday with the Commission. EPSA said FERC's proposal represents a welcome departure from the initial notice of proposed rulemaking (NOPR) that FERC released in January of 2007.

John E. Shelk, president and CEO of EPSA, said, "We applaud FERC for this new proposal, which reflects an improved focus on employee functions rather than corporate affiliation, making it easier and more effective for companies to implement."

EPSA said it generally supports the Commission's proposal, which uses a less complicated approach than was first proposed, thus removing unnecessary and potentially confusing layers of complexity to the standards.

In its comments, EPSA said, "EPSA applauds the Commission's divergence from the 2007 NOPR, which created categories of employees that could receive confidential information without public disclosure. Indeed, the 2008 NOPR presents the simplest and most straightforward solution." The NOPR now uses the classifications of "transmission function employees" or "marketing function employees" and does away with the term "energy affiliate." The NOPR proposes to leave the no conduit rule in effect and strengthen it by adding more prohibitions on the type of non-public information that can be exchanged. EPSA advocates the definition of non-public becoming as broad as is practically feasible.

EPSA said, "In short, the 2008 NOPR makes sense and is practical. It should be easier for market participants to follow and will therefore achieve the goals of the Standards of Conduct - to prevent employees of a public utility from obtaining preferential access to pertinent transmission-related information."

EPSA respectfully suggested a change to the definition of marketing function employee, requested a few clarifications on that definition for inclusion in the final rule, questioned the need for the marketing exemptions set forth in the NOPR and highlighted an area of ambiguity on "shared employees" that it said requires further clarification. EPSA said, "The final rule needn't provide assurances to vertically-integrated utilities that they still can have private conversations concerning transmission planning. The definitions of employee functions laid out in the Standards of Conduct should apply to all employees and the rule should be as free of potential loopholes as possible."

Finally, EPSA said, "In adopting the simultaneous disclosure standards, the Commission will create a win-win situation - market participants will win because the standards are clear and easy to follow; the Commission wins because the standards are clear and easy to enforce."

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.