Bill Text: PA SR400 | 2009-2010 | Regular Session | Introduced

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Bill Title: Urging the Federal Energy Regulatory Commission to adopt policies and regulations that will phase out or reform the Reliability Pricing Model (RPM) to promote competition in the electric market, increased efficiency and savings to electric consumers.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Introduced - Dead) 2010-09-27 - Referred to CONSUMER PROTECTION AND PROFESSIONAL LICENSURE [SR400 Detail]

Download: Pennsylvania-2009-SR400-Introduced.html

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PRINTER'S NO. 2223
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE RESOLUTION
No. 400 Session of2010
INTRODUCED BY BOSCOLA, FERLO, KITCHEN, FONTANA, D. WHITE, O'PAKE, KASUNIC AND RAFFERTY, SEPTEMBER 27, 2010
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, SEPTEMBER 27, 2010
A RESOLUTION
Urging the Federal Energy Regulatory Commission to adopt
policies and regulations that will phase out or reform the
Reliability Pricing Model (RPM) to promote competition in the
electric market, increased efficiency and savings to electric
consumers.
WHEREAS, Regional transmission organizations and independent
system operators exist throughout the country as part of the
electric power market and are under the jurisdiction of the
Federal Energy Regulatory Commission (FERC); and
WHEREAS, PJM Interconnection, LLC, is a regional transmission
organization that administers wholesale markets in a region that
covers all or portions of Delaware, the District of Columbia,
Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey,
North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West
Virginia; and
WHEREAS, PJM Interconnection and other regional transmission
organizations and independent system operators are responsible
for providing and maintaining orderly wholesale electric power
markets and transmission of electric power; and
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WHEREAS, Through PJM Interconnection and other regional
transmission organizations, wholesale power is bought and sold
in what is supposed to be a competitive market; and
WHEREAS, As part of PJM Interconnection's power markets, PJM
Interconnections had in place prior to 2007 a capacity market
whereby willing buyers and sellers purchased electric capacity
from each other in a competitive market, which produced
reasonable capacity prices; and
WHEREAS, In 2007, PJM Interconnection changed its capacity
market by adopting an administratively based Reliability Pricing
Model (RPM) whereby wholesale generation is paid at the highest
amount bid by wholesale generators, thereby resulting in an
artificially determined price instead of a competitive price;
and
WHEREAS, PJM Interconnection's RPM has resulted in
significant increases in the price of electric capacity with no
discernable increase in reliability; and
WHEREAS, The RPM has resulted in suppliers in PJM
Interconnection paying approximately $18 billion over a three-
year period to electric generators solely for capacity, a
significant increase in the charges of $3 billion for capacity
for the three years prior to the implementation of the RPM;
therefore be it
RESOLVED, That the Senate of Pennsylvania oppose PJM
Interconnection's Reliability Pricing Model and urge the FERC to
adopt policies and regulations to phase out or reform the RPM;
and be it further
RESOLVED, That the Senate urge FERC to adopt an energy policy
which better promotes competition in the electric market, as
well as places an increased emphasis on conservation, demand
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response, renewable energy, energy-efficient alternatives and
innovation and technology to increase economic efficiency,
reduce electric usage and provide real savings to the average
consumer; and be it further
RESOLVED, That the Senate urge FERC to work with Congress on
legislative and regulatory initiatives to phase out or reform
the use of capacity charges and similar inefficient and
anticompetitive administrative price-setting mechanisms in favor
of policies and regulations which provide for fully mature
competitive wholesale and retail electric market design that
promotes customer choice, economic efficiency, long-term
contracting and realistic electric rates for retail consumers;
and be it further
RESOLVED, That copies of this resolution be transmitted to
the Governor of Pennsylvania, to each member of Congress from
Pennsylvania, to the commissioners of the Federal Energy
Regulatory Commission, to the commissioners of the Pennsylvania
Public Utility Commission and to the officers and board of PJM
Interconnection, LLC.
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