NFG filed proposed tariff revisions with the Commission on capacity. Specifically, NFG would add a section to notify supplier that it, "may from time-to-time post advisory or mandatory instructions on its web site regarding minimum flow requirements applicable to Mandatory Upstream Transmission Capacity (MUTC) delivery points." NFG suggests that in "directing deliveries to specific receipt points, the Company will be better able to match upstream deliveries with location-specific dispatching requirements, a functionality that will become increasingly important to maintaining reliability as customers migrate to ESCO service in greater numbers." NFG also proposes to, "update the Grandfathered Upstream Transmission Capacity (GUTC) threshold to the currently available quantity based upon the most recent capacity demonstration." The full text of NFG's Filing is available on the NEM Website.

This week the Commission approved the results of Vectren's standard choice offer (SCO) auction, procuring gas supplies for utility customers from April 1, 2010, through March 31, 2011. The auction yielded a retail price adjustment of $1.55 per Mcf. The SCO rate is equal to the retail price adjustment plus the NYMEX month end settlement price. Chairman Schriber remarked that the, "auction netted positive results for Vectren customers," and, "the new retail price adjustment demonstrates that the natural gas market provides a better commodity price for Vectren customers than the gas cost recovery mechanism did in the past." The full text of the Order is available on the NEM Website.

The Commission decided to issue proposed revisions to the policy statement and regulations on electric default service to incorporate the requirements of Act 129 of 2008. Specifically, the revisions include amendments to the definitions and terminology of default service provider, that default service supply be procured using a "lowest cost" approach, and alternative energy portfolio standards. The rulemaking pertains to:
1) default service procurement and implementation plans;
2) default service rate design and recovery of reasonable costs;
3) Commission review of default service programs and rates; and
4) default service customers.

Comments are due thirty days after publication of the proposed policy statement and rulemaking in the Pennsylvania Bulletin. The full text of the Proposed Policy Statement and Rulemaking will be posted on the NEM Website when made available electronically.