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November 17, 2017
NEM Upcoming Events

Upcoming NEM meetings include the Winter Executive Committee Meeting to be held on January 17-19, 2018, in Orlando, Florida and the 21st Annual National Energy Restructuring Conference to be held on April 30-May 2, 2018, in Washington, DC. Please contact headquarters if you are interested in sponsorship.

2017 Staff Report on Enforcement

FERC's Office of Enforcement Staff issued its 2017 Report on Enforcement this week. Staff explained that its priorities for 2017 were fraud and market manipulation, serious violations of the reliability standards, anticompetitive conduct, and conduct that threatens the transparency of regulated markets, and that such matters would remain as priorities in 2018. Staff reported that, "In FY2017, DOI staff opened 27 new investigations, while bringing 16 pending investigations to closure either with no action or through a Commission-approved settlement. During the fiscal year, staff negotiated settlements allowing recovery of more than $51 million in civil penalties, and disgorgement of over $42 million in unjust profits. These settlements also included provisions requiring the subjects to enhance their compliance programs and periodically report back to Enforcement regarding the results of those compliance enhancements." The report described the outcomes of settled and litigated proceedings. It also provided illustrative examples of self-reported violations that Staff closed without opening an investigation. The full text of the 2017 Staff Report on Enforcement is available on the NEM Website.

Click here to view all past updates.
Proposal 51 to Create Constitutional Right to Shop for Electricity

Florida's Constitution Revision Commission (CRC) is considering Proposal 51, which would establish a constitutional right for consumers to shop for electricity. The CRC meets once every 20 years for the purpose of reviewing Florida's Constitution and proposing changes for voter consideration. The CRC meets for approximately one year, to identify issues and recommend changes to the Constitution. Any amendments proposed by the CRC would be placed on the 2018 General Election ballot.

Proposal 51 would add a new section to the Constitution as follows:

"Rights of electricity customers — Effective January 1, 2021, every person, business, association of persons or businesses, nonprofit organization, state agency, political subdivision of this state, or any other entity in this state, referred to in this section as “electricity customers,” has the right to choose the provider of its electricity service, including, but not limited to, selecting from multiple providers in a competitive electricity market, or by producing electricity for themselves or in association with others, and may not be forced to purchase electricity service from one provider. This section may not be construed as limiting the right of electricity customers to sell, trade, or otherwise dispose of electricity."

The full text of Proposal 51 is available on the NEM Website.

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NEM Comments in Support of Supplier Consolidated Billing Option

NEM filed comments in support of a Petition before the Commission for the implementation of a Supplier Consolidated Billing (SCB) option for customers of competitive licensed retail electricity and natural gas suppliers by June 30, 2019. NEM noted that SCB allows competitive suppliers to significantly enhance the nature and quality of the relationship with their customers and also enables competitive suppliers to offer an expanded array of innovative products and services that utility consolidated billing simply does not accommodate. The proposal would ensure that consumer protection is maintained through enhanced supplier qualification requirements. The proposal would also allow suppliers to manage bad debt risk by allowing suppliers to request the utility disconnect a customer for nonpayment and collecting deposits. The full text of NEM's Comments is available on the NEM Website.

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HB118 Requires SRECs to Come From Within the State

OCMO is alerting electric suppliers and electric utilities about the passage of HB118 (Act 40 0f 2017). HB118 included a provision requiring that solar renewable energy credits (SRECs) must come from within the state. The law is intended to address the problem created by previously allowing SRECs to be purchased from out-of-state, but not allowing SRECs to be sold outside of the state.

The law provides as follows:

"In order to qualify as an alternative energy source eligible to meet the photovoltaic share of this Commonwealth's compliance requirements under the "Alternative Energy Portfolio Standards Act" and to qualify for solar renewable alternative energy portfolio credits, each solar photovoltaic system must do one of the following:
(I) directly deliver the electricity it generates to a retail customer of an electric distribution company or to the distribution system operated by an electric distribution company operating within this Commonwealth and currently obligated to meet the compliance requirements contained under the "Alternative Energy Portfolio Standards Act."
(II) Be directly connected to the electric system of an electric cooperative or municipal electric system operating within this Commonwealth.
(III) Connect directly to the electric transmission system at a location that is within the service territory of an electric distribution company operating within this Commonwealth."

The law took effect October 30, 2017, but includes a grandfathering provision that the above-referenced requirements do not affect:

"(I) A certification originating within the geographical boundaries of this Commonwealth granted prior to the effective date of this section of a solar photovoltaic energy generator as a qualifying alternative energy source eligible to meet the solar photovoltaic share of this Commonwealth's alternative energy portfolio compliance requirements under the "Alternative Energy Portfolio Standards Act."
(II) Certification of a solar photovoltaic system with a binding written contract for the sale and purchase of alternative energy credits derived from solar photovoltaic energy sources entered into prior to the effective date of this section."

OCMO reports that the Commission is reviewing the new law and will provide updates on implementation proceedings. The full text of HB118 is available on the NEM Website.

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