Press Release

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today presided over a public hearing to solicit comments on the Federal Energy Regulatory Commission’s (FERC) proposal to create a Standard Market Design (SMD). In its proposal, FERC seeks to standardize the pricing of and practices associated with wholesale, interstate electric transmission service.

"Electric service is an essential commodity, and while this Commission does not have jurisdiction over transmission service, we do have a statutory responsibility to assure the continued delivery of safe, reliable and reasonably priced energy service to Pennsylvanians," PUC Chairman Glen R. Thomas said in opening today’s hearing.

"This Commission will be filing comments to FERC’s rulemaking. In order to submit quality comments, and given the many issues raised in the proposal, we have convened this hearing. Our goal is to hear from those who actually operate and use the transmission grid so that our comments to FERC reflect operational realities as well as economically supportable theory. All of the comments received today will be considered as we prepare our comments to FERC."

The PUC is studying the Standard Market Design proposal with an eye to understanding how the FERC rulemaking would impact the state. Pennsylvania has an interest in the proceeding since it is the home state for the PJM Interconnection, the high-voltage transmission grid that serves the Mid-Atlantic states and the District of Columbia.

The hearing was open to the public. Approximately a dozen business, utility and consumer representatives made brief presentations to the Commissioners. Parties were also invited to submit comments to the PUC’s Secretary’s Bureau. Copies of the comments may be obtained by contacting Lisa Milletics at 717-787-1013.

FERC proposed the Standard Market Design on July 31. Comments are due to FERC by Oct. 16.

While today’s public hearing focused on FERC’s SMD proceeding and wholesale power-market issues, the Commission is planning a similar hearing on Pennsylvania’s transitional retail electric market. The date for the hearing has not been set yet.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.