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Press Release

PUC to Hold Public Hearing on FERC’s Proposed Rule to Create Standard Market Design for Wholesale Power Markets

Published on 8/20/2002

Filed under: Electric

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today announced that the five Commissioners will preside over a public hearing next month to solicit comments on the Federal Energy Regulatory Commission’s (FERC) proposal to create a Standard Market Design (SMD) to standardize wholesale, interstate electric transmission service.

The hearing will be from 9 a.m. to 4:30 p.m. on Tuesday, Sept. 10, in Hearing Room 1 of the Keystone State Office Building in Harrisburg.

"This Commission is studying the Standard Market Design proposal with an eye to understanding how this important FERC rulemaking would impact Pennsylvania," PUC Chairman Glen R. Thomas said. "To this end, we invite utility, business and consumer representatives to share their thoughts before the full Commission. Those comments then will be considered as the Commission files its comments on FERC’s SMD proposal.

"Pennsylvania has an interest in this proceeding since we are the home state for the PJM Interconnection, the high-voltage transmission grid that serves the Mid-Atlantic states and the District of Columbia. Pennsylvania has been and seeks to remain a leader on power-market issues. We also have actively worked with FERC and other states to resolve issues of mutual interest. Considering the SMD proposal will be an important part of our work to strengthen the Pennsylvania, regional and national power markets."

The hearing is open to the public. Parties must pre-register with the PUC by close of business on Thursday, Aug. 29, if they want to be considered for giving a presentation. The Commission will select a limited number of speakers to make short presentations. Interested parties should contact Karen Mitchell (kmitchell@state.pa.us) by letter or email. The Commission will issue a tentative agenda shortly after Aug. 29 indicating the selected speakers and times for presentation.

Parties unable to attend the hearing may submit written comments to James McNulty, PUC Secretary, P.O. Box 3265, Harrisburg, PA 17105. Comments are due by close of business on Sept. 10.

The Commission is particularly interested in comments on operational and economic issues related to the SMD, including:

  • Independent transmission providers and companies;
  • Reliability impacts: load shedding and curtailments;
  • Installed capacity and system reserves;
  • Transmission pricing and congestion management;
  • Day-ahead and real-time markets;
  • Market monitoring and market power; and
  • A cost-benefit analysis with a focus on Pennsylvania and the Mid-Atlantic Region.

FERC proposed the SMD on July 31. Comments are due to the FERC by Oct. 16.

While the Sept. 10 public hearing will focus on the FERC SMD proceeding and wholesale power-market issues, the Commission is planning a similar hearing on Pennsylvania’s transitional retail electric market.

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.

To view the PUC letter inviting parties to the hearing, select here.

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