Washington (Platts)--12May2009

Addressing controversial statements he made last month, US Federal Energy
Regulatory Commission Chairman Jon Wellinghoff on Tuesday clarified that he
believes electricity markets will decide the future of new coal and nuclear
power generation.

During a press conference in Washington April 22, Wellinghoff said he
believes renewable energy resources coupled with demand-side management might
eliminate the need for new conventional power plants.

"Ultimately, I was talking about a scenario" involving demand response
and other technologies "where there may be a point where it would be feasible
to utilize what are thought of as variable resources to really meet peak loads
in a very reliable way," Wellinghoff said Tuesday at a Washington press event.
"Reliability is the key.

"But ultimately that was a scenario," the chairman continued. "What is
the future role of coal and nuclear in this country? The markets will decide."

Wellinghoff's remarks in April sparked debate within the Washington
energy community at the time, and last week Representative Joe Barton of
Texas, ranking Republican on the House Energy and Commerce Committee, and Greg
Walden of Oregon, ranking Republican on the Oversight and Investigations
Subcommittee, asked Wellinghoff for an explanation of how renewable energy can
meet baseload capacity and energy demands.

--Esther Whieldon, esther_whieldon@platts.com