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February 20, 2015
NEM 18th Annual National Energy Restructuring Conference

NEM will convene its 18th Annual National Energy Restructuring Conference on April 29th-May 1st, 2015. This year the conference will focus on “Redesigning Wholesale and Retail Energy Markets - Enhanced Reliability, Consumer Services and Advanced Technologies." The conference will begin with a Welcome Reception on the evening of April 29th at the Georgetown Club. The next two days of substantive discussion will take place at the Embassy Suites, Washington, DC Convention Center. You may register for the conference at this hotlink. An agenda is forthcoming.

NYISO Required to Establish Reliability Must Run Tariff Provisions

FERC ordered this week that NYISO must file proposed Reliability Must Run (RMR) tariff provisions. "NYISO's having on file rates, terms and conditions for RMR service is fundamental to the proper and efficient operation of NYISO's markets. Without such provisions, there is no assurance that generation resources will be treated on a not unduly discriminatory basis and have the opportunity to collect compensatory rates without a protracted proceeding. Thus, pursuant to FPA Section 206, the Commission finds that the omission of procedures in the NYISO Tariff governing the rates, terms and conditions of FERC-jurisdictional RMR service needed to ensure reliable transmission service renders the NYISO Tariff unjust and unreasonable and inadequate to prevent undue discrimination among similarly-situated resources. The uncertainty created for resources by the lack of clear tariff provisions has the potential to exacerbate the very concerns an RMR service is meant to address - ensuring the continued reliable and efficient operation of the grid, and of NYISO's markets. NYISO, as the independent system operator in New York, is uniquely positioned to assess the need for RMR service. Moreover, given its role, NYISO is the appropriate entity to assess the potential impacts RMR agreements may have on its markets in New York. Therefore, NYISO should be the entity that administers RMR service in New York, pursuant to the provisions of its Commission-jurisdictional Tariff required by this order to be filed with the Commission."

FERC addressed the elements that should be included in NYISO's proposed RMR tariff filing including, provisions governing notification of generator deactivation; a process for conducting reliability analyses related to whether the unit is needed for reliability; a process for evaluating alternatives to addressing the reliability need; RMR services compensation; a pro forma RMR agreement; a RMR cost allocation methodology; and rules to eliminate/minimize incentives for generators needed for reliability to toggle between receiving RMR compensation and market-based compensation for the same units. NYISO must make its compliance filing including a proposed RMR Rate Schedule and pro forma RMR agreement within 120 days of the issuance of the Order. The full text of the Order is available on the NEM Website.

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Authority Adopts Standard Contract Summary Form

The Authority was required to adopt a standard contract summary form by legislation passed last year. The Authority has now adopted a standard summary form of material terms and conditions for use by electric suppliers in sales to residential customers. The summary form is required to be included with "all contract packages" and appear as a stand-alone top page of all residential contracts for electric service. The standard form must include the following elements: generation rate; rate plan (fixed, variable); service location; contract term and expiration; contract renewal; other fees (non-generation related costs such as ETFs, deposits, aggregator or broker fees); right to cancel; emissions and generation mix; supplier contact information; and PURA contact information. Suppliers must submit a statement to the Authority by April 1, 2015, attesting to their compliance and providing sample summaries to be used. The full text of the Order is available on the NEM Website.

New York
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NEM Comments on Community Choice Aggregation

NEM filed comments on Staff's White Paper on community choice aggregation that suggested a proposed aggregation program structure under which consumers would participate on an opt-out basis, subsequent to municipalities enacting appropriate ordinances, identification of aggregation program goals, passage of a referendum by affected residents, and development of processes for data sharing and customer notification. NEM offered a number of recommendations related to structuring aggregation programs on a competitively neutral basis, and focused on preserving the right and ability of consumers to exercise their choice of competitive supplier, and structuring the rules so as to facilitate, not impede, consumer shopping under the mechanisms that currently exist today outside of an aggregation program. The full text of NEM's Comments is available on the NEM Website.

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