EPSA statement on market-based rates

WASHINGTON, D.C. – Electric Power Supply Association President and CEO John E. Shelk released the following statement concerning the order issued by the U.S. Supreme Court denying the petition for review filed by Public Citizen, Inc. and three state attorneys general.

(The case, Public Citizen et al. v. Federal Energy Regulatory Commission, et al., (Case No. 11-1009) sought to reverse the decision by the U.S. Court of Appeals for the Ninth Circuit issued on October 13, 2011, upholding FERC’s market-based rate authority under the Federal Power Act.)

“As the national association representing wholesale power suppliers, including generators and marketers, that provide the nation with electricity under FERC’s market-based rate program, EPSA applauds today’s order by the U.S. Supreme Court. EPSA was pleased to intervene in support of FERC before the Ninth Circuit and again in a brief filed just last month urging the Supreme Court not to grant the petition for review rejected by today’s order.

“It is instructive that each of the courts of appeal that have considered the matter has upheld FERC’s authority to allow wholesale power suppliers to transact under market-based rates consistent with the Federal Power Act. It is important to note that FERC took meaningful steps to improve the market-based rate program under Order 697 at issue in this case.

“Today’s Supreme Court action avoids the disruption to wholesale power markets that would have occurred had the Court decided to take up a review of the Ninth Circuit case.”