Members of the American Public Power Association’s Legislative & Resolutions Committee have approved 10 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.