More power generation, more competitive choices for customersand less regulation — not more — are the keys to limiting powerprice increases, according to independent power producers,attempting to diffuse growing public outrage over price increases.

Why are more generating facilities not being built in SouthernCalifornia and other energy-short areas? “It is because arbitraryprice caps, after-the-fact price revisions and other regulatoryinterventions into the free market send misleading signals tomarket participants,” according to a position paper beingcirculated by the Electric Power Supply Association (EPSA).

The group is convening a stakeholder summit, “The Summer of2000: Lessons Learned during the Transition to Competition,” Aug.29 in Chicago. Invited are “customer representatives, consumeradvocates, regulators, energy experts, regulated utility officialsand competitive power suppliers.” The all day meeting will be heldat the Radisson Hotel, O’Hare near the Chicago airport.

“The events this summer in San Diego clearly show that we havenot reached full competition,” said Lynne H. Church, EPSA’spresident. In the position paper, “Real Competition is theSolution, Not the Problem,” the group notes the lack of sufficientgenerating capacity in many parts of the country, and blames inpart, excessive environmental and other local regulation which hasdelayed siting and construction.

Also, EPSA maintains, in order to send the correct signals tothe market, new equipment and controls are needed so consumers cancut their usage during peak periods to save on their electricbills. Customers also should have the option to purchase energycost insurance as a risk management tool for small users.

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