Latest News
Initial Report from FERC/NARUC on Competitive Procurement a Commendable Start, Action Should Follow, Says EPSA
The Electric Power Supply Association (EPSA) today called on policymakers to implement the practices highlighted in the Federal Energy Regulatory Commission (FERC)/National Association of Regulatory Utility Commissioners (NARUC) Collaborative’s recent report, "Competitive Procurement of Retail Electricity Supply: Recent Trends in States Policies and Utility Practices." The report, written by the Analysis Group, highlights best practices in the competitive procurement of electric power resources, emphasizing that strong enforcement of competitive procurement rules benefits consumers. Competitive procurement refers to the process in which electricity suppliers are permitted to bid on an equal basis for the right to supply electricity to a utility and ultimately its consumers.
In written comments it submitted to the FERC/NARUC Collaborative, EPSA said, "For this dialogue to actually impact future electricity supplies, the federal and state collaborative should promptly make recommendations and states should be held accountable for implementing them." EPSA urged the Collaborative to adopt and commit to implementing and enforcing the best practices highlighted in "Competitive Procurement of Retail Electricity Supply." Necessary elements for a sound competitive process include the use of an independent monitor to independently evaluate offers and report on the process and results to regulators, the presence of an open stakeholder process for potential bidders and other affected parties, the clear outlining of needs and system conditions early in the bidding process and the proper treatment of risk when considering a utility self-build proposal versus a competitive supplier’s power purchase agreement.
EPSA said, "These recommendations should not just endorse the thoughtful guidelines set forth in this report, including those for states with rules already, but should recommend action from those states that do not have any procurement regulations in place."
According to EPSA, 40 percent of states have competitive procurement rules, but this percentage drops to less than a third in states that are vertically-integrated. EPSA said, "It is in these states where strong competitive procurement is most needed to guard against utility construction risks and cost over-runs, as well as affiliate abuse."
PR - 33 Comments
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.