The Commission recently reconvened an inquiry into retail electric competition. At the conclusion of a stakeholder workshop in the case comment was sought on: 1) potential risks and benefits of retail electric competition; 2) whether or not competition is in the public interest; 3) provider of last resort; 4) whether the current rules are adequate; 5) costs of competition; and 6) other issues. NEM filed comments to strongly support the implementation of retail electric competition for the benefit of the consumers of Arizona and to offer recommendations on market structure, default service pricing, and retail best practices that can facilitate the development of a robust retail electric market in the State. The full text of NEM's Comments is available on the NEM Website.

As directed by the Board, Staff will convene a stakeholder working group charged with making recommendations on issues relating to the pricing of electricity for certain commercial and industrial customers. The issues include:
1) the use of hourly pricing as an incentive to promote demand response and energy efficiency programs;
2) the extent to which tariff design, in the form of multi-tiered, seasonal or day/night rates, can provide incentives for demand response and energy efficiency similar to hourly pricing for those customers with less load-shifting ability;
3) C&I customer education and outreach pertaining to the benefits of demand response, energy efficiency and energy supply shopping;
4) overcoming barriers to energy supply shopping; in particular, the ability to identify customers on the basis of their peak load shares.
Those that wish to participate in the working group should contact Staff by February 4, 2009, by email at frank.perrotti@bpu.state.nj.us and ronald.reisman@bpu.state.nj.us

NYSEG and RGE filed electric and gas delivery rate cases seeking an increase in rates on an expedited basis. NYSEG/RGE explain that the filing is necessitated by its BBB-level rated status and the impact of the global financial crisis. The proposed delivery rate increases for NYSEG/RGE would amount to a total annual revenue increase of approximately $278 million. NYSEG/RGE are seeking a Commission decision on revenue requirement issues by July 1, 2009. This filing included a discussion of NYSEG/RGE's electric and natural gas supply strategies and policies.

The companies noted their intention to make an additional filing by the end of May pertaining to non-revenue requirement matters, "including but not limited to marginal and embedded cost of service studies, rate design, further unbundling of competitive services, revenue decoupling mechanisms and targets, energy efficiency programs, and low income and economic development programs."

NYSEG's Rate Case Filing is available at: http://www.nyseg.com/SuppliersAndPartners/pricingandtarrifs/ratefiling2009.html

RGE's Rate Case Filing is available at: http://www.rge.com/SuppliersAndPartners/pricingandtarrifs/ratefiling2009.html

The Commission has ordered the simultaneous review of NYSEG and RGE's electric fixed price offerings (FPOs). RGE was required by a previous order to make a filing by March 1, 2009, if it sought to continue to offer its FPO. The Commission decided that the potential renewal of NYSEG's FPO should be considered at the same time, and therefore, NYSEG must also make a March 1, 2009, filing if it wants to continue its FPO offering. The utilities filings must: "describe the current status of the fixed prices energy services companies (ESCO) offer in the service territories; include data on the levels of customer subscriptions to all commodity offerings from 2005 through 2009; show and compare customer bill impacts for the various utility commodity offerings from 2005 through 2008; include calculations of the amounts, if any, for 2005 through 2008 earned by the utilities and shared with customers under applicable formulas for sharing FPO profits; and, evaluate the results of outreach and education programs conducted in connection with the subscription periods when customers may select among commodity offerings." The full text of the Order is available on the NEM Website.