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FERC, NARUC seek comments on Procurement Study

WASHINGTON—State and federal energy regulators are seeking public comments on a recent study that identified state and utility procurement practices that can be deployed to meet the ongoing challenges of ensuring cost-effective electric generation.

In an Oct. 2 letter (below), the Federal Energy Regulatory Commission-National Association of Regulatory Utility Commissioners Competitive Procurement Collaborative said it will use the stakeholder comments to inform the process as it moves forward.

The study under consideration was released in July 2008 by the Analysis Group on behalf of the FERC-NARUC Competitive Procurement Collaborative. It lays a solid framework for enhancing the understanding and appreciation of the competitive procurement process across multiple industry and market structures. The “Competitive Procurement of Retail Electricity Supply: Recent Trends in State Policies and Utility Practices” report is available at the NARUC Website at: www.naruc.org/resources.cfm?p=141 .

Comments will be due Oct. 20 and will be the focus of discussion during the Collaborative’s Nov. 18 meeting, which will be held in conjunction with the 120th Annual NARUC Convention in New Orleans. At that meeting, the Collaborative will discuss the study, the public response and the group’s next steps.

To file comments, please visit: http://procurement.webexworkspace.com .

FERC and NARUC formed the Collaborative in February 2007 as a means to explore and define solutions for meeting future energy supplies. Commissioner Jeff Hatch-Miller of Arizona, Commissioner Stan Wise of Georgia, and FERC Commissioner Marc Spitzer serve as the Collaborative’s Co-Chairs.

R-08-54

TEXT OF LETTER

To Commenters: The following letter is being sent to state commissioners and other stakeholders in order to solicit comments on the study of competitive procurement practices produced for NARUC as part of the NARUC/FERC Competitive Procurement Collaborative. You are invited to review the Study and submit electronic comments on any of the topics addressed in the Study, other factors that you believe could enhance the Study, or any other relevant comments about policies and practices for the competitive procurement of supply for retail electric customers. To submit comments please go to http://procurement.webexworkspace.com/ and follow the link on the front page to view the Study and submit your comments. The deadline for comments is October 20, 2008.

To: State Public Utility Commissions and Stakeholders

From: Commissioner Marc Spitzer - Federal Energy Regulatory Commission
Commissioner Stan Wise - Georgia Public Service Commission
Commissioner Jeff Hatch-Miller - Arizona Corporation Commission

As the Co-Chairs of the NARUC/FERC Competitive Procurement Collaborative, we would like to invite you to comment on the study commissioned by NARUC entitled Competitive Procurement of Retail Electricity Supply: Recent Trends in State Policies and Utility Practices.

This paper was written by Analysis Group which was retained by NARUC to perform a study that would identify a range of model state policies and practices for the competitive procurement of supply for retail electric customers across varying industry and market structures. The study identifies state and utility procurement practices throughout the country that can be deployed to meet the ongoing challenges of ensuring cost-effective electric generation. The study was designed to draw upon the extensive body of policy designs, practical experiences, processes and approaches that have developed over the years in the different regulatory jurisdictions.

The study was issued by NARUC in July 2008. The members of the Collaborative working group would like to invite comment on the study in advance of their next meeting in November in conjunction with the NARUC Annual Convention. That meeting is scheduled for Tuesday, November 18th from 3:00pm – 5:00pm. At that meeting the members of the Collaborative will gather to discuss the report itself, comments on the report, and next steps for the Collaborative. The deadline for comments will be October 20th so that we can consider them in time for the November 18th meeting.

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1The Collaborative is a joint effort of the Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC).

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