Proposed natural gas and electric consumer protection and supplier-utility interaction rules have been published in the Maryland Register for comment. With respect to the retail natural gas market, the proposed rules pertain to pre-enrollment information, transfers of service, supplier-utlity coordination, utility consolidated billing, POR or prorated payments, and residential and non-residential consumer protections. With respect to the electric market, the proposed rules pertain to utility consolidated billing, utility responsibilities in the event of supplier default, and POR or prorated payments. Comments on the natural gas and electric rules are due January 20, 2009. The full text of the Proposed Rules can be viewed in the Maryland Register at: http://www.dsd.state.md.us/MDRegister/3526/main_register.htm

NYSEG/RG&E and O&R made filings with the Commission on ESCO referral programs, in addition to the utility filings discussed in last week's update.

NYSEG/RG&E note that they have had referral program filings pending before the Commission. NYSEG/RG&E submitted program implementation proposals, costs of program implementation and on-going maintenance, and sample calculations of marketer charges for the incremental program costs. NYSEG/RG&E propose to use the "ESCO Service" approach in their programs and to incorporate a seven percent discount rate. Customers would be assigned to participating ESCOs and could not choose an ESCO. To take part in the referral program, marketers must use the utility's consolidated billing and POR service. Participating ESCOs must take part in the program for a minimum two year term, and there must be at least three gas marketers and three electric marketers at all times during the program. The full text of NYSEG/RG&E's Filing is available on the NEM Website.

O&R also filed a projected budget for the continuation of its referral program. Since O&R's program has been in place since 1999, it will experience no costs to establish the program. The costs of continuing the program are marketing costs (i.e., bill inserts) and program administration costs (enrolling customers, calculation and input of the discount price in the billing system, monitoring the price during the introductory period). O&R projects that administrative costs would be approximately $20,000 per year. Marketers would be assessed a pro rata share of these costs annually, and the charges would be netted against monthly POR disbursements. Marketing costs vary by number of bill inserts or advertising done during the year. O&R would develop a marketing plan with participating ESCOs on an annual basis, and the marketing charges would be netted against POR disbursements. The full text of O&R's Filing is available on the NEM Website.

The Commission issued interim guidelines for the design and operation of POR programs by the gas utilities. The guidelines are meant to retain a degree of flexibility in utility implementation to reflect their unique circumstances. The deadline for gas utilities to voluntarily file a POR program is March 31, 2009. The Commission has stated that POR programs, "are perhaps the best chance to increase effective competition in Pennsylvania's retail natural gas supply services market." The full text of the Interim Guidelines will be posted on the NEM Website when made available electronically.

The Commission previously determined to modify the Customer Service Guidelines to allow gas utilities to terminate service for customer non-payment in POR programs. The Commission specifically decided, "we will revise Guideline 6(a)(2) to allow NGDCs to terminate service to a customer for non-payment of NGS charges related to natural gas supply service charges as that term is defined in 52 Pa. Code 62.72 where the charges have been purchased by the NGDC as an account receivable in a Commission-approved POR program." The Commission made the revision to, "permit NGDCs to implement and operate POR programs and [] ensure that all customers, regardless of whether they purchase natural gas supply service from the NGDC or the NGS, will receive the same consumer protection afforded by the termination procedures now in place." The full text of the Order is available on the NEM Website.