Document Search
Site Search
Advanced Search
Updates & Alerts
News & Media
Upcoming Meetings
Deregulation Library
Member Services
Accent Energy
Agl resources
Commerce Energy
ConEdison Solutions
Electric America
Energy America
Energy Source
First Energy
Goeken Group
Goodwatts Energy
Green Mountain
Haines and Company Inc.
IDT Energy
ICE Intercontinental Exchange, Inc.
InBusiness TeleServices
Interstate Gas Supply
Infinite Energy
Integrys Energy Services
Intelligent Energy
Liberty Power
Matrix Imaging
Media Fusion
MX Energy
National Fuel Resources, Inc
National Grid
New York Energy
New York Mercantile Exchange
Pinnacle West
PowerDirect Telemarketing
PPL Solutions
ProLiance Energy
Shell Energy
South Star
The SPI Group
Suburban energy
USCL Corporation
Vectren Source
Watts Marketing & Management Services, Inc.
Washington Gas Energy Services Inc.
February 19, 2010
NEM's 13th Annual National Energy Restructuring Conference

NEM's 13th Annual National Energy Restructuring Conference - NEM will convene its 13th Annual National Energy Restructuring Conference at the Embassy Suites Hotel Washington D.C. Convention Center on April 27th & 28th, 2010. This year’s theme is “Renaissance in Energy Markets.” Topics of discussion will include Competitive Energy Supply, Demand, Prices and Economic Opportunities. Please use this hotlink to register for the event. We have already confirmed a number of key regulators and legislators and this promises to be a "can't miss" event.

Confirmed participants include: Jon Wellinghoff, FERC Chairman; James Cawley, PAPUC Chairman; Alan Schriber, OH PUC Chairman; Douglas Nazarian, MDPSC Chairman; Manuel Flores, ICC Chairman; Orjiakor Osiogu, MIPSC Chairman; David Armstrong, KYPSC Chairman; Sharon Reishus, ME PUC Chairman; Betty Ann Kane, DCPSC Chairman; Erin O'Connell Diaz, ICC Commissioner; Robert Curry, NYPSC Commissioner; Catherine Pugh, MD State Senator; Jess Totten, TX PUC Director; and Eric Matheson, PAPUC Energy Advisor.

NEM Issues Policy Paper on "Achieving Significant, Near-Term Demand Response by Residential and Small Commercial Customers"

Coincident with NEM's sponsorship of and participation in NARUC's winter meeting this week, in which the topic du jour was smart grid and demand response, NEM released a policy paper on "Achieving Significant, Near-Term Demand Response by Residential and Small Commercial Customers." NEM explained that Demand Response (DR) should be "jump started" now through the use of already proven DR strategies and the development of associated transitional, DR load profiles for residential and small commercial customers by drawing from the utilities' 40 years of experience and extant, statistically reliable usage data plus new smart grid pilot programs. NEM and its members are uniquely situated to provide the benefits of load shifting and demand reduction to millions of mass market retail consumers nationwide utilizing current metering practices at the utility and ISO level.

NEM envisions working with the various state PUCs and the related utilities and ISOs in defining the demand response strategies for retail marketers to deliver in that area. Moreover, NEM envisions jointly defining the statistical load profile data necessary based on the data available with the utilities and national DR organizations. The full text of "Achieving Significant, Near-Term Demand Response by Residential and Small Commercial Customers" is available on the NEM Website.

NARUC Winter Meeting

NARUC held its Winter Meeting this week in Washington, DC. NEM sponsored and received an excellent reception at the event. Many thanks to our members that sponsored and attended the NARUC reception and meeting.

NARUC's electricity committee received stakeholder commentary on pending federal OTC derivatives legislation. It was argued that the potential costs of the increased margining requirement that would be associated with mandatory central clearing could run a typical utility in the range of $250 to $400 million in additional cash margin which would of course end up being passed on to ratepayers. With respect to CFTC versus FERC jurisdiction in the OTC derivatives bill, FERC stated its position that FERC jurisdiction should be preserved over those things it clearly currently regulates (it does not take a position on that which they do not currently regulate). For example, FERC jurisdiction over FTRs should be retained. The legislation should not define RTOs/ISOs as DCOs subject to CFTC jurisdiction. The legislative definition of "swap" should not be so broad as to include capacity markets and day ahead markets.

The NARUC Board of Directors passed a resolution on the pending OTC Derivatives legislation that provides in relevant part:
"RESOLVED, That new financial legislation being considered by Congress should weigh the costs of potential end-user utility rate increases versus the benefits of new standards for the clearing of OTC risk management contracts used by natural gas and electric utilities for legitimate hedging purposes; and be it further
RESOLVED, That any federal legislation addressing OTC risk management products should provide for an exemption from mandatory clearing requirements for legitimate hedging activity in natural gas and electricity markets; and be it further
RESOLVED, That any exemption to the mandatory clearing requirement for OTC derivatives be narrowly tailored as to not allow excessive speculation in natural gas and electricity markets; and be it further
RESOLVED, That the FERC, and the PUCT for Texas/ERCOT, charged with the statutory obligation to protect the public interest and consumers, should continue to be the exclusive Federal regulators with authority to oversee any agreement, contract, transaction, product, market mechanism or service offered or provided pursuant to a tariff or rate schedule filed and accepted by the FERC, or the PUCT for Texas/ERCOT."

Also of note, the FERC/NARUC Smart Grid and Demand Response (DR) Collaboratives met again at the meeting. Various groups involved in smart grid/dr gave updates on the status of their efforts. FCC noted that it will release a Broadband Plan in March 2010 that will focus on energy. FCC argued that competition should be allowed in DR with the utilities to unlock innovation. Energy data should be made available to consumers and authorized third parties. FERC with DOE must submit a DR National Action Plan Implementation Proposal to Congress by the end of the year. Prior to that, FERC will publish a final DR National Plan in June 2010. It will also be continuing its biannual DR and advanced metering surveys. NIST is also developing DR standards. Additionally, a smart grid information clearinghouse that will serve as a public smart grid web portal will be made available on the web at

Click here to view all past updates.
Competition Bills Introduced in Legislature

As the legislative session gets into full swing, numerous pro-competition bills have been introduced as well as an electric re-regulation bill. SB942/HB1372 would require the Commission and electric utilities to make available consumer education on competitive options. HB1340 would require the electric and natural gas utilities to make customer account information available to competitive suppliers. SB661 would require the Commission to establish a Competitive Electric and Gas Supplier Referral Program. SB807, sponsored by a number of the senators previously supporting electric re-regulation, would establish that on and after July 1, 2010, "that it is the goal of the State to return as soon as possible to a regulated electric market for the residential and small commercial customer classes that results in a reliable electricity system at the best possible price for those ratepayers." The full texts of the Bills are available on the NEM Website.

New York
Click here to view all past updates.
NIMO Electric Rate Case and Technical Conference

NIMO filed an electric rate case that would establish rates for the three year period from January 1, 2011, to December 31, 2013. NIMO proposes to revise its commodity rate mechanisms effective in 2012 by: "(i) implementing a new Legacy Transition Charge (“LTC”) to allocate the remaining costs and benefits of the Legacy Contracts to all customer classes; (ii) changing the manner in which commodity rates are determined for mass market customers from an average of hourly NYISO prices to a monthly forecast of NYISO prices; (iii) eliminating the DCA and CAC mechanisms and replacing them with a new mechanism that will reconcile overall Company commodity costs and revenues for all customers; (iv) modifying the methodology for calculating the benefit relating to serving residential customers with NYPA hydropower; and (v) removing the Standard Rate Service and Market Rate Service options under its Tariff."

NIMO also proposes to replace the current Customer Service Backout Credit that customers receive from their delivery rate with a Merchant Function Charge on the commodity portion of bills that will be avoided by customers receiving competitive supply. The proposed MFCs are hotlinked here. NIMO also proposes to update its billing credit from $0.53 to $1.15 per bill.

NIMO will convene a technical conference on the electric rate filing on February 26, 2010, at 10AM in their Albany offices. The full text of the Notice of Technical Conference is available on the NEM Website. The full text of the NIMO Rate Case Filing is available from NEM headquarters.

* Member Login :

User ID: 



*****   Click Here to stop receiving NEM Regulatory Updates    *****

3333 K Street, N.W., Suite 110
Washington, D.C. 20007
Tel: (202) 333-3288     Fax: (202) 333-3266

© Copyright 2004 National Energy Marketers Association