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October 28, 2011
Upcoming NEM Meetings

January 2012 Executive Committee Meeting - NEM’s Annual Winter Executive Committee Meeting will be held at the headquarters of SCRA in Charleston, South Carolina on January 24-25, 2012. The Winter Executive Committee Meeting is where Executive Committee members set NEM's course for the coming year. Many thanks to Bill Mahoney and SCRA for hosting the Winter Executive Committee meeting.

You may register for the meeting at this hotlink. NEM has a room block at the Hilton Garden Inn Charleston Airport, 5265 International Blvd in North Charleston, SC. You may register for the hotel at this hotlink or call the reservation number 843-308-9330 or 1-800-HILTONS and reference group code NLL.

Washington Post OpEd on Solyndra Highlighting Need for Energy Market Deregulation

The Washington Post recently ran an OpEd entitled, "The lesson from Solyndra: It’s time to deregulate the energy market," discussing the Solyndra bankruptcy and how it highlights the fundamental problem with governmental intervention selecting winners and losers in the energy sector, as opposed to competitive market forces. The piece goes on to recount positive experiences with energy deregulation here in Texas and in Europe. "Deregulation will make U.S. utilities more efficient, consumer-friendly, and entrepreneurial — as they are in Europe. It will release pent-up market forces, incentivizing fleet-footed utilities to thrive, and forcing stragglers to either measure up or shut down. It will transform rate-payers into customers, who, if not treated well, would be free to take their business elsewhere. With such obvious benefits, why shouldn’t the U.S. shed its fear of deregulation? Europe and Texas have both proven that it can work." The full text of the OpEd is available at this hotlink.

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Notice of Inquiry on Consumer Education Issues

The Commission opened a Notice of Inquiry, as required by recently passed state law, to examine existing consumer education information for residential and small commercial customers and to consider whether updates to that information are necessary. The Commission issued the following specific questions for comment:

"1. Is there a need for the Commission to update existing consumer educa-tion information for residential and small commercial customers? Please provide specific examples of information that is no longer accurate or that is not complete in its explanation of a particular issue.
2. If a commenting party is of the opinion that certain information requires updating, provide proposed language to remedy the perceived shortcoming of the current language."

Additionally, comment is sought on the proposed Commission display of residential complaints against alternative retail electric suppliers on the PlugInIllinois website.

Comments are due December 1, 2011, and reply comments are due December 15, 2011. The full text of the NOI is available on the NEM Website.

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Duke Energy Ohio ESP Settlement

A settlement was reached between parties to Duke Energy Ohio's Electric Security Plan (ESP) proceeding. The settlement pertains to the utility's generation service from January 1, 2012, through May 31, 2015. The settlement would provide for:
1) use of a descending clock, auction-based procurement process to determine commodity rates;
2) a zero percent discount rate POR program;
3) a non-bypassable generation charge, the Electric Service Stability Charge Rider, from 2012 to 2014 to compensate the utility for its provision of retail electric service as an FRR entity while continuing to operate under an electric security plan; and
4) the transfer of Duke Energy Ohio's generating assets to an affiliate by Dec. 31, 2014.

The full text of the Settlement is available on the NEM Website.

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