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EPSA Statement on FERC Dismissal of RPM Buyers Group Complaint

John E. Shelk, president and CEO of the Electric Power Supply Association (EPSA) issued the following statement today in response to the decision by the Federal Energy Regulatory Commission to dismiss a buyers' group complaint about the PJM Interconnection's Reliability Pricing Model (RPM), following consideration and review of the group's request.

"We commend FERC for its dismissal of the RPM Buyers' complaint at the same time the Commission continues its commitment to the stakeholder process, including calling for PJM to report on RPM in writing by Dec. 15 and calling for a 2009 technical conference. This complements the robust process already underway among PJM stakeholders to review and improve the RPM mechanism. As reported by the PJM market monitor, the RPM capacity auctions to date have yielded tangible results in a competitive manner; however improvements and refinements can and should be considered. This work is underway within the new PJM Capacity Market Evolution Committee developed solely for this purpose, incorporating input from a broad range of stakeholders and findings from the recent Brattle Group report, "Review of PJM's Reliability Pricing Model." To date, RPM auctions have facilitated meeting reliability requirements in an efficient and cost-effective manner by getting the most out of existing generation plants, increasing demand response and incenting new generation."

RPM has been in effect since June 1, 2007. It is a pricing system that was developed by stakeholders and approved by regulators to ensure there is an adequate and reliable supply of electricity for PJM's 51 million customers, who reside in 13 states and the District of Columbia.

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.