The Commission filed its annual report on the "Status of Electric Competition in Michigan" with the Governor. The report shows a 51% drop in the number of commercial and industrial customers participating in Consumers and Detroit Edison's choice programs. The report also shows that the megawatts of load receiving service under choice programs was approximately 43 percent less than the previous year. The Commission stated that, "The decline in electric customer choice enrollments and electric load was attributed primarily to two factors: 1) higher wholesale electricity prices in comparison to the current lower power supply costs of the regulated electric utility companies, and 2) an increase in choice customer’s delivery rates. These factors impacted the competitive price of electric supply and made choice a less attractive option for Michigan’s commercial and industrial customers in 2006." The full text of the Electric Choice Report is available on the NEM Website.

Central Hudson will convene a meeting of its Retail Access Collaborative on February 14, 2007, at 10AM. The meeting will take place at the Holiday Inn, 503 Washington Avenue, Kingston, New York. Teleconferencing will also be available.

Thr main purpose of the meeting is to further explain and discuss the changes that have been proposed to Central Hudson's gas balancing and cash out practices that are scheduled to take effect on April 1, 2007. Central Hudson will be updating the determination of the deliverability demand billing components that apply to customers taking transport service under the its gas choice program. Additionally, Central Hudson is revising the manner in which upstream pipeline capacity is released to retail suppliers who choose to take assignment of its primary delivery point capacity under its gas choice program to implement a "partial slice of system" approach. The full texts of the Meeting Materials are available on the NEM Website.

The Commission previously ordered the utilities to submit plans for development and deployment of advanced metering systems. ConEd/O&R requested an extension to file their proposal.

NYSEG and RG&E submitted a detailed plan examining metering alternatives, costs and benefits. NYSEG/RG&E propose to utilize, "advanced solid state meters and meter modules that provide the ability to record interval usage and demand data, support on-demand reads, allow remote programming, and provide outage and tamper notification." The utilities will use a two-way hybrid communication network to provide near real-time communications capability. Finally, a meter data management system will be used to collect, organize, and manage the meter data.

National Grid's proposal includes plans to continue to deploy advanced meters for large C&I customers as mandatory hourly pricing continues to be expanded to SC3 customers, installation of a new meter data repository and data management system, evaluation of a limited fixed network advanced metering infrastrucure system pilot, assessment of new time-differentiated, commodity based pricing for SC1 and SC2 customers, continuation of use of the drive-by AMR system for reading monthly small customer kwh meters, kw demand registers and residential time of use kwh meters, and continuation of the customer option to receive advanced metering pursuant to National Grid's voluntary time of use service, mandatory hourly pricing for large C&I customers and optional enhanced metering for other C&I customers. With respect to gas customers, National Grid proposes to continue its current practice of installing and operating remotely read meters for large volume, daily balanced customers and to continue to read the remaining meters with its drive-by AMR system.

NFG states in its plan that, "there is no need to expand the mandatory requirement for advanced metering to customers with consumption below 55,000 mcf/year." NFG argues that its current voluntary program for advanced metering for customers with consumption between 5,000 mcf/year and 55,000 mcf/year is appropriate.

Keyspan concludes in its plan that large volume interruptible customers do not require advanced metering systems because these customers do not require daily balancing. Keyspan reasons that daily balancing is not required because rates currently include a Swing Demand Charge. Keyspan's temperature controlled customers are planned to receive advanced metering systems within three years. "For all other customers, it is Keyspan's position, daily balancing is not required because there are mechanisms in effect within their respective rates that eliminate any subsidization concerns."

National Grid's plan is available from NEM headquarters. The full texts of the other Utility Metering Plans are available on the NEM Website.

At its agenda meeting today, the Commission issued a proposed rulemaking on default service regulations, a draft Policy Statement on the provision of default electric service, and draft policies on mitigation of potential electricity price increases at the end of the utilities rate cap periods.

The proposed default service regulations modify previous rule proposals based on comments received. The proposed regulations would: 1) allow regular adjustments to default service rates to reflect changes in a default service providers (DSPs) actual incurred costs; 2) require DSPs to submit individual procurement plans that can include fixed term and spot market purchases; 3) encourage the stepped procurement of energy supplies; and 4) provide incentives for facilitating customer choice and energy conservation; 4) offer each default service customer a single "price to compare" that "represents a blend of all generation and transmission related costs."

The proposed Policy Statement is intended to provide a framework for DSPs and addresses supply purchases, alternative energy portfolio standard compliance, competitive bid solicitation processes, default service cost elements, interim price adjustments and cost reconciliation, rate design, and "rate change mitigation." A Retail Markets Working Group is also established to develop policy recommendations in areas such as rate ready billing, customer referral programs, uniform supplier tariffs, and a retail ombudsman at the Commission level and at each utility.

The Commission also issued proposed policies for the mitigation of potential electric price increases at the expiration of utility rate caps. These include consumer education programs on the subjects of the real price of electricity and competitive suppliers, energy efficiency, demand response and conservation, and improving low income programs.

Comments are due on the proposed default service regulations and proposed DSP Policy Statement on March 2, 2007, and reply comments are due March 23, 2007. Comments on the proposed price mitigation policies are due twenty days after issuance of the Order. The full texts of these proposals will be posted on the NEM Website when made available electronically.

Duquesne Light has filed a proposed Energy Supply Plan for 2008-10. Duquesne's current plan is set to expire this year. Duquesne has proposed a fixed price generation service for non-electric heat residential customers through 2010. Small commercial and industrial customers would receive a fixed rate, subject to adjustment in 2009 and 2010 by a market index. Large commercial and industrial customers will continue to receive hourly pricing as their default service. Duquesne requested approval of the Plan by July 1st. The ALJ scheduled a prehearing conference in the matter for February 28, 2007.