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EPSA Takes Next Step In Federal Court Appeal Of FERC's Demand Response Rule

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) yesterday afternoon took the next step in seeking to overturn the Federal Energy Regulatory Commission's highly controversial rule (Order 745) to mandate preferential and discriminatory compensation for demand response resources in wholesale electricity markets. Specifically, EPSA filed the required "Non-Binding Statement of Issues" with the United States Court of Appeals for the District of Columbia Circuit in Electric Power Supply Association, et al., v. Federal Energy Regulatory Commission. A copy of the Statement of Issues can be found at www.epsa.org.

EPSA President and CEO John E. Shelk issued the following comments on the filing:

"EPSA is proud to be playing a lead role in this important court case. More significantly, EPSA is pleased and very gratified that several other national and state entities representing the cross-section of the electricity sector have recently joined EPSA in filing petitions for review with the court in Washington, D.C. This breadth and depth of opposition are further evidence that Order 745 cries out to be overturned on appeal.

"The statement of issues filed with the court yesterday indicates convincingly that Order 745 raises numerous legal and economic deficiencies and thus there are many grounds on which the court could rule in favor of the several parties seeking review of this unprecedented order.

"While all along EPSA has stressed that there is an important role for demand response in wholesale electricity markets, there is a disturbing trend that must be stopped. While demand response providers would be given preferential compensation under Order 745, those same providers are busy at EPA and within the North American Electric Reliability Corporation seeking to avoid air emission and reliability rules applicable to wholesale electricity suppliers including EPSA members. This is an unlawful and unwise double standard that cannot be tolerated if markets are to function fairly and efficiently."

EPSA Takes Next Step In Federal Court Appeal Of FERCís Demand Response Rule

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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.