5.4. ERMUSR 03-20-2007 - Laserfiche WebLink

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appropriate way to implement these provisions, but has not yet issued any proposed rule. In its comments filed afterthe technical conference, APPA noted that the purpose of the transparency provisions was to make rnarkets work more effectively. Therefore, FF.RG should not focus solely on price indices as determinants of price transparency. Instead, "t.he Commission should broaden its focus to consider how greater availability of market information can improve. price transparency and help address problems in natural gas and electricity-markets." . ~ • , 1 1 FERC has adequate authority to ensm~ejust and reasonable wholesale rates and to obtain information needed to oversee wholesale markets, but needs to exercise this authority more rigorously. Congress can also play a role in encouraging FERC to utilize its existing authorities, especially in the context of RTOs/ISOs. APPA supports FERC's initiatives to address generation market power issues through it_s rnarket-based rate policy review, and its implementation of the market manipulation and long-term transmission rights provisions under EP.Act05. APPA did not support the repeal of PUHCA included in EPAct05, holding to the position that the preservation of PUHC,A and more active enforcement by the Securities and . Exchange Commission (SF.C) was crucial to achieve effective wholesale competition in the electric utility markets for the benefit of consumers and the public interest. On the other . hand, APPA strongly supported the market manipulation prohibition and the enhanced state and federal access to holding company books and records included in EPAct05, as well as FERC's enhanced authority over holding company and generation-only mergers. APPA believes that these authorities - if fully enforced -will help to offset the potential for the exercise of market power created by PUHCA's repeal. T L~ www.APPAnet.org 11