At Platts Energy Podium, U.S. FERC's Norris Stresses Importance of Energy Market Jurisdiction and Reasonably Priced Power

WASHINGTON, April 6 /PRNewswire/ -- John Norris, the newest member of the U.S. Federal Energy Regulatory Commission (FERC), at the Platts Energy Podium today endorsed the agency's position that it, and not the U.S. Commodity Futures Trading Commission (CFTC), should oversee the trading of physical power and financial transmission rights.

"It is very important that FERC have clear jurisdiction over that domain," Norris told reporters at the newsmaker briefing event in Washington. But "we have a joint interest in getting this right," he continued, saying that once the dust settles it will be important for the two agencies to work together, particularly in providing assistance to one another as each conducts market investigations. Norris said once Congress settles the issue, he hopes "there will peace in the family" between the two agencies.

A Democrat and former chairman of the Iowa Utilities Board, Norris was nominated by President Obama and confirmed by the U.S. Senate for a FERC term expiring June 30, 2010.  He joined the commission in January.

Discussing wholesale electricity markets and the ongoing debate over whether they are producing reasonably priced power, Norris judged them to be a "great success so far." Saying he takes a "trust and verify" approach, the commissioner added that "a robust competitive market is essential to continue to foster investment" that is needed to expand the system. Norris emphasized that FERC and the grid operators have a responsibility to ensure markets operate competitively.  The "answer is to make sure the rules are fair," he said.

FERC is currently considering performance metrics for regional transmission organizations, and "we should look at it critically," Norris said. And while questioning the value of and need for the level of detail that some customer groups are urging the commission to collect, including generator-specific costs and profits, the commissioner allowed that customers are "entitled to some reasonable" numbers.

A recording of the John Norris session is available via podcast at this link: http://www.platts.com/PodcastsDetail.aspx?xmlPath=EnergyPodium/energypodium.xml. (You may be asked to complete a one-time-only log-in to the Platts website.)

For more information on energy and energy policy, visit the Platts website. Sponsored by Platts, the energy and metals information arm of The McGraw-Hill Companies, Platts Energy Podium provides an ongoing forum for prominent newsmakers and the press to address important energy and environmental issues.

About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies (NYSE: MHP)is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.

SOURCE Platts