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Unique Coalition of Consumer, Environmental and Energy Groups Opposes Proposed Repeal of Oklahoma's Competitive Bidding Rules
Oklahoma City, Okla. - A broad-based coalition of consumer, environmental and energy groups have joined together in a unique partnership to oppose a proposal before the Oklahoma Corporation Commission (OCC) to repeal requirements that Oklahoma utilities obtain their future electricity supply through a competitive procurement process. Repeal of Oklahoma's competitive procurement rules would limit Oklahoma consumers' options and impede competition, according to comments filed at the OCC today by the Electric Power Supply Association (EPSA), the Oklahoma Office of the Attorney General, AARP Oklahoma, the Oklahoma Sustainability Network and the Oklahoma Industrial Energy Consumers. The Sierra Club's Oklahoma Chapter, AES Corp. and Kelson Energy made individual filings opposing the repeal of competitive procurement. The Commission's competitive procurement rules govern the process by which a range of electricity suppliers, not just the utility's self-supply option, bids on a fair basis for the right to supply electricity to a utility for its customers.
EPSA President and CEO John E. Shelk said, "Competitive procurement provides an open and transparent process for consumers to know that they are receiving the best bid at the lowest cost, greatest efficiency and lowest risk for their energy dollars. The OCC showed tremendous national leadership in adopting competitive procurement rules in 2006 and we urge them not to reverse this now.
"At the same time this proposal is pending in Oklahoma, states such as California, Colorado and North Carolina are reviewing their future resource needs and taking steps to protect consumers by requiring utilities to consider best practices in competitive procurement. At the national level, yesterday the National Association of Regulatory Utility Commissioners adopted a resolution recommending that states consider adopting the best practices highlighted in the NARUC/Federal Energy Regulatory Commission collaborative report, "Model State and Utility Practices for Competitive Procurement Of Retail Electric Supply." We urge Oklahoma to maintain its reputation as an energy leader and defend its strong competitive procurement rules."
Shelk said, "The competitive procurement mechanism is one that is used in every industry across our economy to protect consumers. It is especially important to protect Oklahomans from unnecessary risk at a time when economic uncertainties are so high. Rather than repeal a valuable tool that benefits consumers, we encourage regulators to promote a transparent, vibrant and fair competitive bidding process. It is especially critical to put supply options to the test at a time when there are many questions about future electricity demand levels, construction and fuel costs."
The joint comments to the OCC are available at www.epsa.org under "Recent Filings."
The 2008 NARUC/FERC Collaborative report,"Model State and Utility Practices for Competitive Procurement Of Retail Electric Supply" is available at . http://www.naruc.org/Ferc/default.cfm?c=1
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.