State utility regulators from five Mid-Atlantic/Northeast states and the District of Columbia last week urged the U.S. Congress to “resist efforts” to delay implementation of FERC’s pending standard market design (SMD) rulemaking.

“We encourage the leadership of the U.S. Congress and the congressional delegations of our respective states to pass national energy legislation that allows the Federal Energy Regulatory Commission to continue to work with state utility commissioners and industry stakeholders to achieve the benefits that wholesale energy markets can bring,” said state utility commissioners from Delaware, the District of Columbia, Maryland, New Jersey, New York and Pennsylvania.

They noted that FERC has undertaken an unprecedented effort to solicit input from state utility commissioners and other industry stakeholders on all sides of the debate. The state commissioners said that FERC’s recently issued SMD white paper “demonstrates that FERC has carefully listened to all parties and is willing to respond to well-reasoned concerns by altering plans and by recognizing regional differences.”

In the white paper, FERC made a strong push to mollify state and congressional concerns over the sweeping proposal to overhaul U.S. wholesale power markets.

“We believe that FERC, state utility commissions and industry stakeholders should continue to move forward with efforts to improve wholesale electric markets and to deliver the benefits of those markets to consumers,” the state regulators said.

“In order for markets to work efficiently, the rules by which market participants operate must be clear. Needlessly postponing FERC’s rules will have an adverse impact on the developing energy markets of our states — threatening the willingness of capital markets to invest in the development of essential generation and transmission facilities, and preventing the economic recovery of our energy sectors. Additionally, stalling improvements to America’s wholesale power markets will only lead to more of the economic uncertainty currently challenging our states.”

Energy legislation recently passed by the U.S. Senate Energy and Natural Resources Committee would prevent FERC from issuing a final SMD rule until July 1, 2005. However, that legislation remains to be reconciled with a comprehensive energy bill passed by the House of Representatives in April which does not contain an SMD roadblock.

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