APPA Offers New Policy Resolutions on Distributed Generation, Capacity Markets and Physical Security

March 11, 2014

Press Release

WASHINGTON, D.C., March 11, 2014 - Members of the American Public Power Association’s (APPA) Legislative & Resolutions Committee today approved nine resolutions at its annual Legislative Rally, including resolutions in support of fair distributed generation policies, reforms to Regional Transmission Organization (RTO) capacity markets, and critical infrastructure physical security.

APPA strongly supports distributed generation as a component in public power’s renewable energy mix. It does come with its share of challenges though, including distribution congestion, imbalances imposed on the grid, and safety challenges for lineworkers, and voltage fluctuations. These challenges will need significant utility investment. As a result, APPA is advocating that all beneficiaries of distributed generation pay their fair share in order to keep the grid safe and reliable. Further, compensation policies must be crafted in a way that reflects utility costs and passes on building and maintenance costs to others who are reaping benefits.

In terms of RTO capacity markets, APPA is urging the Federal Energy Regulatory Commission (FERC) to require that, after a transition period to be determined by the three Eastern RTOs in conjunction with their stakeholders and state commissions, annual capacity market auctions would become voluntary and residual for both buyers and sellers (subject to the appropriate seller market-power). Further, APPA asks FERC to restore and ensure the ability of public power systems to self-supply their own loads with their own resources by guaranteeing that these resources will clear the relevant capacity market auctions.

With regard to physical security, APPA resolves to continue to work internally as well as externally (with agencies and entities across all levels of government) to enhance collaboration with a goal of protecting critical infrastructure by forging strong partnerships, educating its member utilities, and supporting legislation and administration efforts to enhance information-sharing.

Other resolutions include support for legislation to protect against “patent trolls,” support small modular reactors, and strengthen public power’s mutual aid network.

More than 600 locally elected and appointed officials, legislative experts, and APPA members are attending the rally March 10-12.

The approved resolutions (available at are as follows:

Resolution 14-01: In Support of Legislation to Protect Against “Patent Trolls” (Patent Assertion Entities or “PAEs”)

Resolution 14-02: In Support of Distributed Generation Policies that Allow for Local Decision-making and Equitable Rates Among Customers

Resolution 14-03: In Opposition to Sequestration of Direct Payment Bond Payments

Resolution 14-04: In Support of Small Modular Reactors (SMRs)

Resolution 14-05: In Support of Improving the U.S. Army Corps of Engineers’ Hydropower Practices

Resolution 14-06: In Support of Strengthening Public Power’s Mutual Aid Networks

Resolution 14-07: In Support of Reforming the Centralized Capacity Markets Operated by Regional Transmission Organizations

Resolution 14-08: In Support of Appropriate Liability Protection for Electric Utilities Related to Cyber Attacks

Resolution 14-09: In Support of Critical Infrastructure Physical Security


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