In reviewing the recent petition by CPV requesting that the Maryland utilities be required to enter into 20-year contracts for output from a CPV generating station, the Commission concluded it should undertake a broader examination of whether Maryland needs new generating facilities. Specifically, the Commission has opened a new proceeding, "to investigate whether it should exercise its authority to order electric utilities to enter into long-term contracts to anchor new generation or to construct, acquire, or lease, and operate, new electric generating facilities in Maryland." Additionally, parties interested in making proposals for Maryland-situated generation were directed to submit their proposals into the case. Said proposals should address facility location, megawatts to be produced, type of generation technology, commercial operations date, and contract length for long-term contracts and are due by December 1, 2009. The full text of the Order is available on the NEM Website.

The Commission adopted procedures to implement the state law requirement that, "no more than 10% of an electric utility's average weather adjusted retail sales for the preceding calendar year may take service from an alternative supplier at any time." The procedures define how choice load will be administered and allocated. The procedures establish a ranked grouping system to determine whether and how different types of customers are served under the 10% cap. The electric utilities will calculate the cap based on the weather-adjusted retail sales of the preceding calendar year, with an initial cap filed on the 1st of January each year and a final cap filed on the 1st of February each year. A utility's cap calculation can be challenged through a complaint filed by February 15th of the relevant year. The electric utilities must implement a cap tracking system and post information on their websites about energy allotments. The full text of the Order is available on the NEM Website.

In response to FERC Order 719 pertaining to the ability of aggregators of retail customers to bid demand response directly into an RTO market, the Commission has initiated a proceeding to develop rules and regulations for the direct participation of Michigan retail customers into an RTO wholesale market. The Commission further decided that the participation of Michigan retail customers in an RTO market should be temporarily restricted pending the outcome of the case. Initial comments in the case are due December 4, 2009, and reply comments are due January 6, 2010. The full text of the Order is available on the NEM Website.

Earlier this year, the Commission required the utilities to file austerity plans prompted by economic conditions in the State. Of note, in NFG's austerity filing it detailed its plan to issue customer bill credits in the amount of approximately $6.2 million. NFG suggested this be accomplished, "through either existing bill mechanisms or a 'one-time' bill credit." NFG also suggested that customers should be provided with a utility fixed price option [FPO] in addition to the bill credits. NFG "proposes to offer a FPO again on a limited basis in order to provide customers with the ability to 'lock in' to lower gas costs, if they remain available, for a fixed period of time. The FPO could be designed generally in accordance with the requirements contained in the Commission's 1997 Order [on gas utility FPOs]. The Company recognizes and agrees that the purpose of a FPO is to ameliorate volatility and not necessarily to produce savings. However, an FPO is nonetheless a proven sales item that should be made available as another means of enabling customers to gain greater control over household costs." The full text of NFG's Filing is available on the NEM Website. Comments on the austerity plans are due November 16, 2009.