APPA CALLS FOR GREATER WHOLESALE MARKET TRANSPARENCY;
EXPRESSES CONCERN REGARDING OVER-THE-COUNTER
DERIVATIVES MARKETS
WASHINGTON, D.C., February 23, 2010 - Members of the American Public
Power Association's (APPA) Legislative & Resolutions Committee today
approved 11 resolutions at its annual Legislative Rally, including
endorsing policies to improve wholesale market transparency and
expressing concern regarding regulation of over-the-counter (OTC)
derivatives markets.
With regard to wholesale market transparency, APPA has identified a
number of problems related to the performance of bid-based wholesale
electricity markets that regional transmission organizations operate and
the Federal Energy Regulatory Commission regulates. But in the
near-term, APPA believes the lack of full data transparency in those
markets should be addressed. In the resolution, APPA urges FERC to
require timely and full disclosure of RTO generator bid data, including
the identity of the bidders and generation units, as well as the actual
costs of operating these units. APPA also calls for increased
congressional oversight of FERC's regulation of RTO markets.
As Congress continues to develop legislation to regulate
over-the-counter derivatives transactions, APPA continues to push for
greater transparency in energy fuels markets. In the resolution, APPA
supports legislation providing an exemption from mandatory clearing of
OTC derivatives transactions for those entities that hedge for purposes
of limiting commercial risk. Further, APPA supports legislative
language that gives FERC primary jurisdiction over RTO products such as
financial transmission rights so that FERC may continue to administer
these important tools.
Other resolutions include support for energy storage technologies and
equivalent federal incentives for public power utilities as well as
legislation extending power supply contracts from the Hoover Dam.
More than 600 locally elected and appointed officials, legislative
experts, and APPA members attended the rally Feb. 22-25.
The approved resolutions (available at www.APPAnet.org in the APPA
Newsroom) are as follows:
Resolution 10-01: Public Power Inclusion of Section 1603 Grant Program
for Renewable Energy Production
Resolution 10-02: Support for Energy Storage Technologies and
Equivalent Federal Incentives for Public Power Utilities
Resolution 10-03: Allocation of Emissions Allowances to the Electric
Utility Sector in Any Cap and Trade Program Approved by Congress
Resolution 10-04: In Support of Legislation Extending Power Supply
Contracts from the Hoover Dam
Resolution 10-05: In Support of the Appropriate Application of the Dam
Safety Act of 1986
Resolution 10-06: In Support of Additional Transparency in Wholesale
Electricity Markets Operated by Regional Transmission
Organizations/Independent Systems Operators
Resolution 10-07: Public Power Concerns Regarding Regulation of
Over-the-Counter Derivatives Markets
Resolution 10-08: In Support of Development of Reliability Standards
and Enforcement Reform
Resolution 10-09: In Support of Efforts Regarding Rail Competition and
Antitrust Reform
Resolution 10-10: In Support of a National Broadband Plan
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Based in Washington, D.C., APPA is the national service organization for
the nation's more than 2,000 community- and state-owned not-for-profit
electric utilities serving 45 million customers.