EPSA objects to Soutwest Power Pool proposal.
Share:
Press Release Summary:
According to SPP proposal, electricity flowing in region's wholesale Energy Imbalance Service Market will be treated as interruptible. In filing with Federal Energy Regulatory Commission, EPSA asked FERC to reject SPP's proposal, which would prevent imbalance energy flows from being given Firm rather than Interruptible transmission service status. EPSA says SPP's proposed revisions would limit market participation and are not adequately supported.
Original Press Release:
Allowing Energy Imbalance Flow to Be Interrupted Could Impair Competition in SPP, EPSA Tells FERC
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) yesterday objected to a proposal by the Southwest Power Pool (SPP) that would allow electricity flowing in the region's wholesale "Energy Imbalance Service" (EIS) Market to be treated as interruptible. The SPP is a regional transmission organization (RTO) that is responsible for coordinating the wholesale electric transmission system and encouraging the efficient use of resources in eight southwestern states.
In a filing with the Federal Energy Regulatory Commission (FERC), EPSA asked FERC to reject SPP's proposal, which would prevent imbalance energy flows from being given "firm" rather than "interruptible" transmission service status. EPSA said SPP's proposed revisions to the status of energy flowing in the EIS Market would limit market participation and are not adequately supported.
EPSA President and CEO John E. Shelk said, "Relegating EIS energy flow to an interruptible status will discourage buyers and sellers from wanting to participate in an uncertain market. Given the absence of more competitive electricity market mechanisms, such as those found in other regions, SPP should be required to offer some justification for jeopardizing the robustness of the one market available to competitive suppliers."
'Energy imbalance' refers to the difference between the amount of energy a utility schedules for use by its customers and the amount of energy actually generated. The EIS Market is designed to encourage the efficient deployment of generation and a market-based mechanism for congestion management in a region. The SPP's EIS market began operations in February 2007.
Shelk said, "Competitiveness in SPP will suffer as participants shy away from the EIS Market because of the possibility of curtailments and unresolved congestion."
According to EPSA's filing, EIS is the only forum for competitive electricity suppliers to bid generation that is not already committed under bilateral contracts and it thus functions as "the de facto energy market for competitive suppliers in SPP." EPSA points out that SPP's proposed revision fails to provide any adequate support for its assertion that the use of firm transmission service for imbalance energy is 'inappropriate.' A complete copy of EPSA's motion to intervene in the SPP proceeding is available here or at www.epsa.org.
Allowing Energy Imbalance Flow to Be Interrupted Could Impair Competition in SPP, EPSA Tells FERC.PDF
CONTACT: DAPHNE MAGNUSON
(202) 628-8200
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.
