EPSA Welcomes FERC Final Rule on Organized Wholesale Electricity Markets
October 22, 2008 // Published as a news service by IHS
FERC voted unanimously on a bipartisan basis to issue the final rule and in doing so reaffirmed its support for wholesale competition.
"We commend FERC for the inclusive process it has followed the past 18 months in thoughtfully examining wholesale electricity market issues.
"We are strongly encouraged that FERC ... reaffirmed its commitment to improving and promoting competitive wholesale electricity markets with a focus on the four issues it identified last year: demand response, long-term power contracts, market monitoring units and the responsiveness of regional transmission organizations (RTOs) to stakeholders.
"While we look forward to reviewing the final rule in detail, it clearly recognizes the value of strong competitive markets in achieving innovation, facilitating investment in new generation, and lowering emissions," said John E. Shelk, president and CEO of EPSA.
"Organized wholesale markets are delivering tremendous benefits, however they can be refined and improved where justified.
"Any changes to wholesale market rules must be viewed with an eye toward what measures are consistent with the significant investment needed to meet future electricity needs, while advancing demand response and improving the environment.
"We'll be reviewing the specifics with great interest. At the end of the day, it is important for buyers and sellers to be able to make decisions based on clear price signals that reflect economic reality and market supply and demand fundamentals," Shelk said.
EPSA submitted detailed comments on FERC's Notice of Proposed Rulemaking in April 2008 and expressed strong support of FERC's proposed rule at that time, as well as filing comments in September 2007 in response to FERC's advanced notice of proposed rulemaking (ANOPR) and testifying at the FERC technical conferences that preceded the ANOPR last year.
Source: Electric Power Supply Association (EPSA).