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Competitive Electricity Suppliers Are Critical to a Green Economy and Climate Goals, EPSA Says
Williamsburg, Va. - John E. Shelk, president and CEO of the Electric Power Supply Association (EPSA), reaffirmed at a conference here yesterday that competitive electricity suppliers are critical to the development of the efficient and innovative methods of generating electricity needed to meet the incoming Obama Administration's goals of advancing a green economy and addressing global climate change. Shelk made his remarks at Michigan State University's Institute of Public Utilities Annual Regulatory Policy Conference during a panel on the new Administration's regulatory policy agenda for "Energy Markets, Resource Policy and Climate Change."
Shelk said, "We commend the incoming Obama Administration for its openness and active outreach to a variety of energy groups, including EPSA. We're also pleased by the incoming Administration's recognition that electricity policy and climate policy are closely linked."
He said, "We strongly support the incoming Administration's vision of a green economy and a reduced carbon footprint. Achieving laudable green economy, economic stimulus and climate goals will require an electricity system that is even more open to innovation. Competitive suppliers are uniquely positioned to provide that innovation, as they have demonstrated by leading the way in deploying renewable technologies, cleaner and more efficient natural gas technology and accomplishing more efficient operation of nuclear and coal plants. In addition, competitive suppliers built over 80 percent of power generation during the last build-out and did so at the investors' and not the customers' risk."
Shelk also made several policy recommendations:
- Moving forward early on climate change should be the top energy and environmental priority. Putting a price on carbon while facilitating new cleaner investment through loan guarantees and R&D support for carbon capture and sequestration is essential in order to overcome current climate policy uncertainty that is contributing to delays in required investments.
- We urge the new Administration and the new Congress to carefully consider and integrate electricity policy with environmental policy to make sure the now-Balkanized electricity systems are more fully consistent with bringing lower carbon, affordable and reliable electricity to consumers. This can best be achieved by continuing the bipartisan work of the Federal Energy Regulatory Commission to lower barriers to access for all forms of generation and demand response, thus promoting investment.
- Regulators should continue to monitor and refine the regional organized electricity markets, however it is important to rebuff attempts to rollback the regional markets, because these markets provide an electricity system that fosters innovation and welcomes new entrants. As demonstrated by the robust growth of wind generation in organized power markets, they provide greater ease of access to the grid and clearer market signals to encourage investment in renewables and innovative technologies. The existence of RTOs and ISOs is essential to achieving the new Administration's laudable green economy and climate goals.
- Further, the one-third of the country that does not lie within an RTO must be encouraged to adopt better open access transmission and greater market access.
- It is important to coordinate federal and state electricity policy. In particular, the FERC-NARUC collaborative on competitive power procurement can play an important role in the green economy by spurring more competitive power contracts, more easily attracting the $600-$700 billion in new generation investment expected over the next 20 years and encouraging this new generation to be developed with maximum efficiency. More widespread adoption of competitive procurement will allow all types of suppliers to come forward and participate in regional markets on fair terms.
EPSA is on record as the first multi-fuel electricity trade association to support federal mandatory market-based economy-wide legislation. Competitive Electricity Suppliers Are Critical to a Green Economy and Climate Goals, EPSA Says
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.