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October 3, 2008
Upcoming NEM Meeting Dates

Please save the date for NEM's Fall Leadership Roundtable. The meeting will take place October 28-29, 2008, and will be hosted by IDT Energy at their offices located at 520 Broad Street in Newark, New Jersey. NYPSC Chairman Garry Brown, NYPSC Commissioner Robert Curry, NJBPU Commissioner Nicholas Asselta and NYPSC Staff are confirmed to participate. Eric Matheson, Energy Advisor to Pennsylvania PUC Chairman Cawley, is confirmed to attend. Delaware State Senator Harris McDowell will also attend. Angelina LaRose, Office of Oil and Gas/Energy Information Administration, will also participate. A Revised Draft Agenda is available at this hotlink. Please register at this hotlink. Special room rates have been arranged at the Hampton Inn Suites River Walk Hotel in Harrison, NJ. Hotel accommodations at the preferred $119.00 rate are being coordinated by IDT. Please call (973) 438-4531 to arrange your hotel reservation.

NEM's Winter Executive Committee Meeting will be held at Infinite Energy/Intelligent Energy headquarters at 7001 SW 24th Avenue in Gainesville, Florida. The meeting will take place January 20-21, 2009. Please register at this hotlink. A block of rooms has been reserved at the Hilton University of Florida Conference Center at 1714 SW 34th Street, Gainesville, Florida at a rate of $139 per night. Contact 352-371-3600 for reservations.

NEM's 12th Annual Global Energy Forum & Membership Meeting will be held April 28 & 29, 2009. The meeting will be held at the Embassy Suites Washington D.C. - Convention Center located at 900 10th Street, NW, Washington, DC. Please register at this hotlink. A block of rooms has been reserved for NEM members at the rate of $279 per night. Contact 202-719-1421 for reservations.

UGI Energy Services, Inc. Joins NEM

The National Energy Marketers Association (NEM) is pleased to announce that UGI Energy Services, Inc. (UGIES) has joined the Association. UGIES, which currently serves over 11,000 commercial, institutional and industrial facilities, markets natural gas behind over 30 utilities in its 8 state footprint, which includes Delaware, Maryland, North Carolina, New Jersey, New York, Ohio, Pennsylvania and Virginia, as well as in the District of Columbia. UGIES, which owns generation assets, also sells electricity in the PJM market area, as well as oil and propane. UGIES also provides asset management services for interstate pipeline and storage capacity and owns and operates a number of natural gas peaking facilities, including an LNG plant located in eastern Pennsylvania. UGIES d/b/a GASMARK and POWERMARK will be represented within NEM by Senior Business Development Manager, Jodi Larison, as well as by Matt Dutzman, Vice President of Business Development and Cheryl Fuhs, Director Small Commercial.

EIA-910, Monthly Natural Gas Marketer Survey

Revisions to EIA's natural gas data collection program, including EIA-910 - the Monthly Natural Gas Marketer Survey, were published in the Federal Register this week.

Earlier this year, EIA had proposed to revise EIA-910 to require LDC-level reporting instead of the current state-level reporting and also proposed to require reporting in Mcf, rather than the current option of reporting in Mcf or therms. In NEM comments and a subsequent member conference call with EIA, we urged them not to adopt these changes.

EIA had proposed the change to LDC-level reporting to address the discrepancy between utilities reporting on EIA-857 of volumes transported on account of marketers and marketers reporting of volumes on EIA-910. In our comments we explained the discrepancy may not be resolved by changing EIA-910 to LDC-level reporting because of many factors such as: 1) the reporting entities use of billing versus usage data when they report, 2) likelihood that marketers individual reporting would not lead to the sum reported by utilities; 3) utility reporting may be more precise because they have service classification information that marketers do not have access to; and 4) marketers and utilities may internally use a different date at which a customer is counted as having migrated.

In the revised version of EIA-910 just published for comment, EIA adopted those suggestions essentially retaining the format of EIA-910 currently in use (except to exclude reporting for Massachusetts) to keep the state-level reporting format and allow reporting in therms or Mcf. Comments on the revision are due October 29, 2008. The full texts of the Federal Register Notice and Revised Proposed EIA-910 are available on the NEM Website.

Illinois
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Ameren Gas and Electric Rate Case Order

The Commission adopted an order in Ameren's gas and electric rate case. In the interest of uniformity, Ameren had proposed a new tariff book for each of its three gas utilities. The Commission approved this change. Specifically with respect to transportation service, Ameren proposed a new Rider T, applicable to each of its three gas utilities. The Commission approved a 10-day MDCQ bank size, with a 20% tolerance band. The Commission clarified that the banks do not represent gas "borrowed" from the utility, but rather is gas owned by transportation customers. The Commission approved monthly cashouts for imbalances for small transport customers and daily cashouts for other transportation customers. The cashout mechanism is only to be applied to the post-bank imbalance. The Commission also approved a $6.00/therm charge for unauthorized gas usage during Critical Days. The Commission approved Ameren's proposed 4PM evening nomination cycle in conjunction with its current Timely nomination cycle. The Commission required Ameren to file information on the costs of implementing the 4 NAESB intraday nomination cycles in its next rate case. The Commission required the implementation of a small volume transportation tariff (for customers otherwise served under GDS-2 or GDS-3) to provide for monthly balancing but that does not require daily metering, although providing said customers with the option of using daily telemetry.

Additional issues resolved in the course of this case include: 1) the Chicago citygate is the only daily cashout price; 2) in conjunction with usage history requests, Ameren will also provide the customer's service classification and rider, the customer's maximum daily contract quantity, the customer's bank volume (if applicable), and the customer's gas main maximum allowable operating pressure (if applicable); and 3) group balancing service will be provided for AmerenCILCO transportation customers (already available to AmerenIP and AmerenCIPS customers). The full text of the Ameren Rate Order is available on the NEM Website.

Pennsylvania
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Commission Adopts Rules for Compliance with Alternative Energy Portfolio Standard

The Commission adopted rules on compliance with the Alternative Energy Portfolio Standard (AEPS) for electric utilities and electric generation suppliers (EGSs). The rulemaking sets forth requirements on: electric utility and EGS obligations; alternative energy system qualifications; alternative energy credit certification; alternative compliance payments; alternative energy cost-recovery and market integrity; banking alternative energy credits; and an alternative energy credit registry. The electric utilities and EGSs must supply 18 percent of electricity using alternative energy resources by 2021, achieved through a phase-in. AEPS compliance is deferred during electric utility rate caps. The full text of the AEPS Rules is available on the NEM Website.

MetEd and Penelec File Proposed Prepayment Plan

In anticipation of the transition to market-based electric rates after the expiration of rate caps at the end of 2010, MetEd and Penelec filed a proposed voluntary prepayment plan (VPP) for residential and small commercial customers. By the terms of the plan, customers that voluntarily opt-in would pay a monthly per kilowatt hour charge to be accumulated on a customer-specific basis with interest at 7.5 percent annually. "The VPP is designed to be competitively neutral - the payments and credits will be independent of a customer's ability to choose to purchase generation from an alternative generation supplier." Once rate caps expire on December 31, 2010, participating customers will get a monthly bill credit to be paid out over a two-year period. Customers can enroll in the VPP by phone, response to a mailing or utility website. MetEd and Penelec request Commission approval of the plan by the end of 2008 to begin customer education in January 2009 and collection of customer prepayments by March 2009. The full text of the Proposed Prepayment Plan is available on the NEM Website.



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