Senator Feinstein Letter

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FERC-Generated

PDF of 20060630-0079

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by FERC OSEC

06/27/2006 in D o c k e t # : A D 0 5 - 7 - 0 0 0

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OFFICE OF
June20, 20 TERNAL AFFAIRS
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The Honorable Joseph Kelliher
Chairman
Federal Energy Regulatory Commission
888 First Street, NE
Washington, DC 20426

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Dear Chairman Kelliher:
One of the central teatures of the Electricity 'lhtle of the Energy Policy Act of 2005 was
the section directing FERC to protect and promote the ability of load serving entities to secure
transmission rights to meet their service obligations. Included within Section 1233 was a
requirement that FERC initiate a rulemaking to provide for long-term transmission rights in
organized markets. We are pleased that the Commission understands the importance ofthis
directive and has initiated that rulemaking. Further, we are pleased with the general policy
direction reflected in the proposed rule.
As you know, long-term transmission rights are an important prerequisite for loadserving entities to enter into long-term power supply arrangements. Without such rights, parties
cannot know the cost or deliverability ofpower supplies over time and will be reluctant to build
needed generation or enter into long-term power contracts.
It is important to note that Section 1233 was one o f the most debated and discussed
provisions of the Energy Policy Act of 2005 - and was central to the broad bipartisan support
that the electricity title received. As the key Senate supporters o f that provision, we urge you to
fulfill both the letter and spirit of the provision and to resist efforts to encourage the Commission
to weaken or delay its effective implementation.
Thank you for your consideration of our views. We look forward to the Commission's
expeditious implementation of new rules under Section 1233.