EPSA MBR Authority Leave Behind

Here are my thoughts / issues with the EPSA paper:

1. The EPSA paper indicates the preferred option of the 5 models that FERC Staff proposed. Should EPSA at least indicate that it stands ready to analyze other solutions that may be proposed? Gives EPSA an "out" of this recommendation if it proves later that FERC's application of the Delivered Price Test is unworkable.

2. I don't understand when EPSA says "Our recommendation, therefore entails a more stringent method of assessing market power" on page 2 of the draft? Why should EPSA indicate that it is comfortable with a 20% Economic Capacity test to FERC. I would argue that 35% is the minimum we should entertain as an opening position. Also, is there a fear that a power marketer would have to meet this test in "real-time"? Having a once and done for three year application is ok, but if we are conditioned that we can't get beyond 20% in any market, what does this do to trading and how would this be reported?

3. The discussion on Available Economic Capacity and its implication for having a "bias against new entry" is confusing. Maybe we should clairfy our concerns.

4. The argument that ALL new generation is by definition pro-competitive needs to be strengthened. It should be explained in the context of the Delivered Price Test. Also, it that still true if a party which holds 100 MW in a 500 MW market builds a 100 MW power plant - now 200 MW in a 500 MW market? Maybe I am missing something.

5. EPSA needs to make the argument that Conditioning MBR on vague rules is wrong and anti-competitive earlier in the paper. This is my biggest concern - that we are perpetually subject to some refund risk when the market "breaks" even though our fundamental presence has not changed.

6. I don't understand the EPSA paper on RTO versus non-RTO markets. EPSA endorses something but I'm not sure what? What does this mean if I sell on TVA's network? I appreciate blanket authority, but I wonder about exactly how this would be constructed? Would this be similar to the natural gas marketer blanket authority? Also, doesn't this play into the hands of the transmission monopolists who don't want competition - if they never set up an RTO they never face competition?

Jim