Yesterday, (3/31/08), the Electric Power Supply Association (EPSA) and the New England Power Generators Association (NEPGA) released a letter they sent to Sen. Bernie Sanders (I-VT), stating that they have "serious concerns" about S. 2660/H.R. 5547, the "Consumer Protection and Cost Accountability Act." Although the generator groups stopped short of opposing the bills, EPSA and NEPGA told Sanders that the bill would have "serious unintended consequences," including "chilling necessary investments in the nation's power supply system" and discouraging development of renewable resources.
The bills, introduced last month by Sens. Bernie Sanders (I-VT) and Olympia Snowe (R-ME) in the Senate and Rep. Tom Allen (D-ME) in the House, call on FERC to assure that the independent system operators, such as ISO New England, provide reliable electric service at the "lowest reasonable cost" to consumers.
"The bill appears to be based on the false premise that RTOs and ISOs are causing price increases for consumers," the letter states. This is not, in fact, the case. The largest driver behind electricity prices is the cost of fuel, not the market structure."
The EPSA/NEPGA letter also claims that the bills will complicate and conflict with efforts to implement regional and national programs to address global warming.
NEPPA is preparing a response to the EPSA/NEPGA letter.