LPPC 12-13-04 Press Release

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For Immediate Release
Contact: Bob Bonitati , LPPC | (703) 740-1754

February 10, 2005

LPPC: Service Obligation and Reliability both "Critical" to Legislation

Washington, D. C. -- In testimony before the House Energy & Commerce Subcommittee on Energy and Air Quality, the Large Public Power Council (LPPC) told the Subcommittee that the issues of Native Load Service Obligation and Grid Reliability were "critical" to any legislation that might be reported out of the Subcommittee.

"Public power systems are owned by the communities we serve, not by investors. We are not for-profit entities, which makes us different. Public power systems are established by state law and are obligated to provide electric service to their customers," the LPPC told the Subcommittee.

"As a result, all available resources go first to serving customers. Power is sold and surplus transmission is made available only if it is surplus to those needs. We do not want to risk the reliable, reasonably priced power that our customers expect and are entitled to receive." The LPPC urged "the continued inclusion" of the 2003 Conference Report Service Obligation provision in any legislation that might be enacted.

The LPPC testimony was presented by Ed Hansen, General Manager of Snohomish Public Utility District in Everett, Washington.

Hansen also told the Subcommittee that, "Ensuring the security and reliability of the grid is a critical issue for LPPC, Congress, DOE and FERC. All feasible steps must be taken to protect the grid from physical disruption. LPPC has supported mandatory reliability standards prescribed and enforced by an Electric Reliability Organization or by an interconnection-wide regional reliability authority under FERC supervision.

More than regulatory enforcement of reliability standards is needed to ensure reliability and continuity of electric service," Hansen testified. "Assurance of reliability requires upgrading the grid and deploying new technology that permits the grid to be managed more effectively."

LPPC is an organization representing 24 of the largest locally owned and operated power systems in the country. Together they own and operate over 61,500 megawatts of generation and approximately 33,000 circuit miles of transmission lines.

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