Press Release

PA PUC Submits Comments to Federal Energy Regulatory Commission, Calls Standard Market Design Essential to Future of Electric Competition Nationwide

Published on 1/13/2003

Filed under: Electric

HARRISBURG – The Public Utility Commission (PUC) filed comments before the Federal Energy Regulatory Commission (FERC) calling the Standard Market Design proposal essential to the future of electric competition in Pennsylvania and nationwide.

“Standard Market Design for the nation’s electricity transmission system is critical to enhancing reliability and ensuring reasonable electricity prices,” said PUC Chairman Glen R. Thomas. “It’s time to move forward with SMD so consumers can benefit from an open marketplace for electricity.”

In the proposal, FERC seeks to standardize the pricing of and practices associated with wholesale, interstate electric transmission service.

According to Chairman Thomas, the PUC recognizes that wholesale energy markets are regional and interconnected. Consequently, the PUC supports the development and implementation of standard rules and practices for wholesale electric markets.

The PUC recommended FERC to:

• Support rules that improve state involvement in the transmission planning and expansion process;
• Strengthen state participation in the regional planning process by clearly defining jurisdictional responsibilities and giving states complete and timely access to market information;
• Establish general principles to ensure short-term and long-term reliability; and
• Provide wholesale customers the financial means to protect against congestion costs for transmission service.

In September, the PUC held a public hearing to solicit comments on the FERC proposal from companies and individuals who actually operate and use the transmission grid. After reviewing comments from the businesses, utilities and consumer representatives, the Commission filed initial comments on the FERC proposal on Nov. 15.

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.

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PUC’s SMD Comments to FERC

Contact:

• Tom Charles
  Director of Communications
  717-787-9504
  thcharles@pa.gov