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Proposed Senate Energy Speculation Bill Could Have Unintended Consequences for Consumers, Says EPSA

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) yesterday sent the letter reprinted below to the bipartisan Senate leadership expressing the association's initial views on S. 3268, the "Stop Excessive Energy Speculation Act of 2008." According to sponsors, the proposed legislation aims to strengthen the Commodity Futures Trading Commission (CFTC) and increase transparency and accountability in oil and gas markets. The proposed legislation was introduced on July 15, 2008 by Senate Majority Leader Harry Reid.

As stated in the letter that follows, EPSA appreciates the efforts of the Senate to address the issue of rising energy costs, but EPSA is concerned that some provisions of S. 3268 could actually reduce liquidity and efficiency in energy markets, which in turn could drive up costs to consumers. EPSA's member companies must purchase and consume fuels for electricity generation, prudently hedging those purchases on the energy commodities markets. They thus would be impacted by the proposed legislation. EPSA companies would also be impacted because of the risk management services they provide to other energy market participants.

EPSA's letter to Senate leaders can be viewed in the attachment below.

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.