Letters to the Editor

The January issue's Commission Watch article, "Grid Battle Is Joined," reports on the effort, pursuant to Section 205(a) of PURPA, by the Federal Energy Regulatory Commission (FERC) to exempt American Electric Power (AEP) from compliance with the laws of the Commonwealths of Kentucky and Virginia. In his "Frontlines" column, Editor Richard Stavros offers another perspective on this proceeding. Both pieces contain factual inaccuracies that the Virginia State Corporation Commission (VSCC) wishes to correct.

First, Ms. Burkhart and Mr. Radford state, in their otherwise fine article, "Grid Battle Is Joined," that in a ruling issued late last year the FERC "exempted [AEP] from contrary instructions from Kentucky and Virginia, and compelled AEP to join the PJM RTO and to participate fully in PJM market structures[.]" This statement is incorrect. The FERC's Order of Nov. 25, 2003, made only preliminary findings that AEP should be exempted from compliance with state laws and regulations. The matter is currently proceeding before an administrative law judge and both Virginia and Kentucky are vigorously defending the propriety of their state laws, rules, and regulations from this unprecedented federal action. Many other states have intervened in support of the Kentucky and Virginia position as well.