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Competitive Suppliers Urge FERC Not to Allow NU and NSTAR to Sidestep Competition
WASHINGTON, D.C. - A coalition of three groups representing competitive power suppliers (Competitive Suppliers) raised strong concerns about the lack of detail and potential anti-competitive nature of a proposed transaction included in a Northeast Utilities Service Company (NU) and NSTAR Electric Company (NSTAR) petition currently pending before the Federal Energy Regulatory Commission (FERC). The Competitive Suppliers detailed their concerns in a protest filed with FERC on Monday, January 26 and urged the Commission to deny the petition. NU and NSTAR filed a Petition for Declaratory Order in December seeking a waiver of the landmark Order 890 requirement that all transmission services be provided on an open access, competitive and non-discriminatory basis. The waiver request concerns a pending bilateral transmission services agreement with H.Q. Energy Services, Inc. (HQUS) for 1,200 MW of exclusive transmission service over a new direct current transmission line connecting the New England region with the Hydro-Quebec system. The Competitive Suppliers assert that, as proposed, the petition does not align with long-standing Commission policies.
"The petition seeks a declaratory order in direct conflict with the open-access and non-discriminatory transmission requirements established by the Commission, which would transfer substantial costs and risks onto captive ratepayers and, in so doing, would represent a dramatic reversal of federal and state energy policy encouraging the development of competitive wholesale electricity markets," said John E. Shelk, president and CEO of the EPSA.
Angela O'Connor, president of the New England Power Generators Association (NEPGA), said, "The New England stakeholders have invested substantial time and resources in the development of vibrant competitive electricity markets based upon the Commission's existing open access transmission policy. While we support the prudent development of necessary transmission infrastructure, NU and NSTAR's proposal calls for greater scrutiny on the part of the Commission to maintain transparent and non-discriminatory access to competitive markets in New England."
The Competitive Suppliers detail concerns that the transaction as proposed does not meet FERC's rules for open access transmission service or merchant transmission open season requirements. If the petition is not denied, the Competitive Suppliers urge the Commission to impose certain conditions on the transaction. The Competitive Suppliers consists of the Electric Power Supply Association, the New England Power Generators Association and the Independent Energy Producers of Maine.
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.