COMPETE Applauds FERC Action on Electricity Market Reforms

The COMPETE Coalition today congratulated the Federal Energy Regulatory Commission (FERC) for preserving the real and tangible benefits of competitive electricity markets while advancing reforms that will further benefit consumers.

“Today FERC demonstrated its recognition that those calling for detrimental retrenchment in electricity competition represent their own vested interests, rather than the broader interests of all consumers,” said Joel Malina, Executive Director of the COMPETE Coalition. “This final rule preserves the documented economic and environmental benefits competitive electricity markets provide consumers while opening the door for reforms that will enhance these consumer and environmental benefits,” Malina added.

“Renewable energy development and innovative demand response programs are flourishing in competitive markets. Further investment in these areas would be jeopardized if the various requests for FERC to retreat from decades of pro-competition policies had been accepted,” Malina noted.

The final rule FERC adopted today hews to the four policy areas FERC identified in its proposed rule, which was informed by three technical conferences featuring a broad range of stakeholder interests. The final rule advances prudent reforms in market monitoring, responsiveness of regional transmission organizations, and long-term contracts. But the most significant reforms for consumers are directed at spurring greater participation in organized markets by demand response resources.

“The transparency and pricing mechanisms found in competitive markets uniquely benefit the growth of demand response.   Comverge is encouraged that FERC continues to improve and protect market functions to foster this important resource through new market rules,” said Dr. Eric Woychik, Vice President, Regulatory Affairs, Comverge, Inc.

By keeping the proceeding focused on areas to improve and advance competition, FERC acted in customers’ best interests.

“Our customers benefit from the many environmental initiatives that we launched as a result of restructured energy markets,” said Joe Pettus, Safeway’s Senior Vice-President Fuel and Energy.   “FERC’s actions will allow restructured markets to continue to mature and open up more opportunities for us to manage our energy resources and in turn share those benefits with our customers."