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EPSA ASKS FERC TO DENY DUQUESNE'S REQUEST TO BE EXCLUDED FROM PJM'S CAPACITY MARKET AUCTION

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today asked the Federal Energy Regulatory Commission (FERC) to deny Duquesne Light Company's request that it be excluded from PJM Interconnection's upcoming Base Residual Auction designed to address reliability issues in PJM. On September 12, 2007, Duquesne unexpectedly informed PJM and PJM transmission owners that it was seeking to leave the RTO. The following day Duquesne filed with FERC for expedited approval to be excluded from the October 1st capacity auction, since it intends to no longer be a PJM member in 2009, the delivery year for power from this auction.

"FERC should deny Duquesne's complaint on the grounds that Duquesne remains a signatory to PJM's reliability agreement and, contrary to what Duquesne has claimed, there is no credible information that the utility will not be in PJM in 2009," said John E. Shelk, President and CEO of EPSA. "Duquesne's request for expedited approval, which requires hasty action on a major market element, threatens the stability of the market for all participants at a time when it is needed most as we prepare for imminent power needs in PJM."

Duquesne's request, submitted only two weeks before the auction takes place, raises numerous concerns and unanswered questions among PJM wholesale suppliers. "Certainly, the request for expedited comment and consideration under a fast track process impedes the ability to undertake the necessary investigation and consideration of those impacts," EPSA's filing states. "[T]he capacity prices in the Residual Auction will be impacted, perhaps greatly, by Duquesne's inclusion or exclusion at the time of the auction, not at the time of delivery. Those prices cannot be unwound, rerun or subject to refund for all auction participants; risks associated with the exclusion of Duquesne's load from the October 2007 auction will be borne by multiple suppliers and load-serving entities in PJM, not only Duquesne."

"While Duquesne assumes that its withdrawal from PJM will be completed by its proposed date of January 1, 2008, there are many reasons that the proposed timetable would not be met. Hence, as a member of PJM, can Duquesne be relieved of the obligations of PJM membership, particularly those that implicate reliability concerns?" the filing adds.

EPSA is asking that this proceeding be consolidated with the expected filings on Duquesne's membership in PJM, so that all facets and the full impact of this proposed change can be fully investigated, assessed by market participants, and carefully considered by the Commission. A copy of the filing is available here and at www.epsa.org.
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EPSA Asks FERC to Deny Duquesne's Request to be Excluded from PJM's Capacity Auction.PDF

CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660

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.