The Commission approved NFG's proposal to change its storage inventory balance requirements. The order finds that the storage inventory level increase from 20% to 28% at the end of February, "represents the minimum level that would still provide for full deliverability of storage on the last day of the month due to National Fuel Gas Supply tariff restrictions on its Enhanced Storage Service." The Order also approved the NFG proposal to allow the sale of storage to take place only if mutually agreed to by the supplier and NFG. "This could benefit marketers if their customer enrollment drops. Instead of facing a forced sale of gas to the Company due to dropped enrollment, the marketer can keep the storage gas and use it for its remaining customers or sell it outright on its own at a market price." The Order additionally approved NFG's proposal to modify how end-of-month (EOM) shortfalls are rectified. "Marketers need to ensure that the EOM storage requirements are met. In the proposal, marketers will be provided with a “buffer” of 2% to account for changes on NFG’s system especially in local production supplies. If the marketer is deficient, the Company will provide up to 2% of the deficiency at the market rate. Beyond 2%, cash outs will be the higher of Deficiency Pricing Tier 3 or the SC 11 Rate. These actions are analogous to the methods currently used for city gate balancing and are acceptable." The full text of the Order is available on the NEM Website.

The Commission will convene an en banc hearing on November 10, 2011, at 1PM to seek comments in its Investigation of Pennsylvania’s Retail Electricity Markets. The hearing is to be focused on stakeholder views on the intermediate work plan to promote competition. Tentative agenda topics include: Consumer Education-Statewide Campaign; Accelerated Switching Timeframes; Customer Referral Programs; Retail Opt-In Auction; and Default Service Plans beyond June 2013.

Requests to testify are due October 21, 2011. Written comments after the hearing are due November 23, 2011, for the Commission to consider in reviewing staff recommendations associated with the development of an intermediate work plan. The full text of the Notice and Tentative Agenda is available on the NEM Website.

The Commission issued intermediate recommendations from the Staff for stakeholder comment as part of the current investigation of Pennsylvania's retail electricity market. Issues for comment include: the format and structure of the utility's upcoming default service plan filings; energy contract durations; retail opt-in auctions; referral programs; time-of-use rates; default service rate adjustment structure (residential and small commercial); and hourly-priced default service (medium commercial and industrial). Comments are due twenty days from the date of entry of the Commission Order. The full text of the Order will be posted on the NEM Website when made available electronically.

The Commission decided to initiate a rulemaking proceeding on natural gas supplier (NGS) licensing requirement regulations. Currently, marketing service consultants and nontraditional marketers are exempt from the Commission's NGS licensing requirements. In a Motion by Commissioner Witmer to initiate the review she stated, "due to the non-compulsory nature of licensing such entities and to the amount of direct interaction these entities have with retail customers, combined with the fact that licensed marketing services consultants and/or nontraditional marketers may gain a competitive edge or perceived higher level of credibility over other unlicensed entities providing the same types of services, I believe that now is the time to conduct a review of the Commission's regulations outlining the licensing requirements for natural gas suppliers. This view is consistent with my earlier statements that support continuous review of both the Public Utility Code and our regulations to ensure that their purpose is being properly effectuated. I further believe that the goal of this review should be to discontinue the NGS licensing exemption of marketing services consultants and nontraditional marketers and instead require all natural gas aggregators, marketers and brokers to be licensed by the Commission in order to offer natural gas supply services to retail customers, consistent with Act 121 of 1999. At a minimum, initiating a proposed rulemaking will allow the Commission to receive comments to determine if our regulations regarding NGS licensing requirements conform with the plain language of the Act and reflect the current business plans of NGSs appearing before this Commission. Finally, to be clear, the NGS licensing exemptions contained in Pa. Code § 62.102 shall remain in effect until such time as the Commission adopts regulations that rescind them."

The Commission will issue a proposed rulemaking for comment within ninety days of the entry of the Order. The full text of Commissioner Witmer's Motion is available on the NEM Website.