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EPSA Statement on NERC 2008 Long Term Reliability Assessment
John E. Shelk, president and CEO of the Electric Power Supply Association (EPSA), today commented on the North American Electric Reliability Corporation's (NERC) assessment of the nation's electric reliability through 2017. The NERC 2008 Long-Term Reliability Assessment report analyzes the adequacy of the North American bulk power system for the next 10 years and makes recommendations to improve reliability. Shelk said:
"For starters, we commend NERC for taking a key step in the right direction by recognizing a greater amount of generation from competitive suppliers that is available to serve consumers. In past years, NERC underreported competitive generation. By contrast, NERC's 2008 report reflects EPSA's efforts over several years to include available competitive generation, particularly outside of organized markets. In the Southeast SERC region alone, NERC reported that this change resulted in showing an additional 28,000 megawatts of previously uncounted competitive generation. We will continue to participate in NERC's process so that when decisions are made to either buy from a new or existing competitive supplier or go with a new utility self-build, regulators will have the information they need about the availability of all resources so consumers get the best deal.
"We are also encouraged by NERC's recognition of the contribution that forward capacity markets have made to improved capacity margins in organized markets. In particular, NERC notes that the ISO New England capacity markets have encouraged investment in power plants and boosted the development of demand resources. EPSA will work with stakeholders and policymakers to make sure that capacity markets are based on economic fundamentals.
"Finally, NERC's assessment recognizes the substantial growth of wind energy in certain regions of North America, such as Texas, the Midwest and the Mid-Atlantic - all regions that participate in organized wholesale power markets. The fact that 79 percent of today’s installed wind generation is hosted by organized markets speaks to the success of competition in promoting renewable energy."
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.