Document Search
Site Search
Advanced Search
Updates & Alerts
News & Media
Upcoming Meetings
Deregulation Library
Member Services
Accent Energy
Advantage Energy
AGL Resources
Agway Energy
Alliance Data Systems
APS Energy Service Corporation
Commerce Energy
ConEdison Solutions
AES Contellation New Energy
Customer Link
Electric America
Elster Electricity
Energy America
Energy Clear America
Energy Services Group
Energy Source (Regional Member)
Excelon Corporation
First Data
First Energy (Regional Member)
Goodwatts Energy
IDT Energy
Infinite Energy
Intelligent Energy
InterContinental Exchange, Inc.
Interstate Gas Supply
IMServ (Invensys)
InBusiness TeleServices (Regional Memembers)
KeySpan Energy
Media Fusion
New York Energy
New York Mercantile Exchange
Ohms Energy Corporation
Ontario Power Generation
Peoples Energy
Pinnacle West
Prebon Energy
ProLiance Energy
Select Energy
Sempra Energy Soulutions
Shell Energy Corporation
SPi Group
South Star Energy
Total Gas and Electric, Inc.
USCL Corporation
Vectren Source
Washington Gas Energy Services Inc.
WPS Energy
March 10, 2006
NEM Annual Membership Meeting and National Energy Restructuring Conference

Please mark your calendars for NEM's Annual Membership Meeting and National Restructuring Conference on April 25-26, 2006, in Washington, DC at the Marriott Metro Center focused on "Adding Value and Winning Customers with Innovation, Technology and Service." To view the agenda, use the following hotlink:

We have already confirmed the following to attend: U.S. Congressman Ralph Hall, Chair, House Energy and Air Quality Subcommittee, U.S. Congressman Tim Murphy, Member, House Energy Committee, Nora Brownell, Commissioner, FERC, Paul Hudson, Chair, Texas Public Utility Commission, Stan Wise, Chair, Georgia Public Service Commission, Alan Schriber, Chair, Public Utilities Commission of Ohio, James Cawley, Vice Chair, Pennsylvania Public Utility Commission, Monica Martinez, Commissioner, Michigan Public Service Commission, Kevin Wright, Commissioner, Illinois Commerce Commission, Ron Cerniglia, Director, NYPSC's Office of Retail Market Development and Calvin Timmerman, Senior Commission Advisor, Maryland Public Service Commission, John McMahon, President & CEO, Orange and Rockland, and Lynne Kiesling, Ph.D.

In addition, we will conduct new Mission Critical Workshops. These will include "How to Deal with the Media When they Knock on Your During Price Spikes - Crisis Communications Workshop for Energy Marketers" conducted by Rasky Baerlein Strategic Communications. An additional workshop will focus on "New Market Entry 101 - Significant Compliance, Reporting and Certification Requirements and Political, Legal and Regulatory Framework for Entering New Retail Markets (MI, MD, NY, OH)" to be led by John Dempsey of Dickinson Wright, Joelle Ogg of Brunenkant & Cross, Steven Sherman of Krieg DeVault and Lisa Bradley of Hiscock & Barclay. Another workshop will examine "Expanding Market Share and Winning New Customers with Innovation and Technology."

Those members interested in sponsoring the event should contact headquarters. Advertisements for the event, including sponsor information, receive international media distribution.

Click here to view all past updates.
Commission Adopts BGE Rate Stabilization Plan, Considers Extension to Pepco and Delmarva

The Commission instituted a rate stabilization plan for BGE residential customers to commence July 2006. The plan will last for two years with customer bills for the first eight months ending in February 2007 to reflect a distribution rate credit, and with recovery of deferred amounts to take place over a fifteen month period ending in May 2008, subject to true-up. Customers participating in the Electric Universal Service Program will receive a three year plan. Significantly, the Commission decided the plan should be implemented on an opt-out basis, rather than opt-in as the Staff proposed. The Commission found that a rate of five percent was appropriate for carrying costs.

With respect to consumer education, the Commission recognized the concerns of NEM and WGES that the consumer education message be implemented in a competitively neutral manner. BGE, the Commission's Office of External Relations and the Consumer Education Advisory Board are to develop the consumer education plan, and a compliance filing including outreach efforts, billing issues and timelines is due March 31, 2006.

NEM and WGES recommendations concerning billing and payment and customer lists were recognized by the Commission as "important issues." However, the Commission felt, "issues relating to marketer-utility interactions are best addressed in other proceedings, such as the pending rulemaking regarding these matters." The full text of the BGE Rate Stabilization Plan Order is available on the NEM Website.

The Commission also initiated a separate proceeding to investigate the institution of a rate stabilization plan for Pepco and Delmarva residential customers. Parties are to file comments recommending whether and to what extent the BGE plan should be extended to these utilities. The Commission noted it, "would prefer to consider a transition plan that reflects market-based price signals for electric supply, while mitigating the effects of rate shock on the non-bypassable portion of customers' bills." Comments and interventions are due March 16, 2006. The full text of the Order Initiating Proceeding is available on the NEM Website.

Procedural Schedule Set for Type II SOS Proceeding

The Commission has adopted a procedural schedule for its investigation into default service for Type II Standard Offer Service Customers. The schedule is as follows:

Testimony - March 31, 2006
Reply Testimony - April 28, 2006
Hearings - May 8-10, 2006
Briefs - May 24, 2006
Reply Briefs - June 5, 2006

The full text of the Notice of Procedural Schedule is available on the NEM Website.

New Jersey
Click here to view all past updates.
Meeting on Natural Gas Issues

Board Staff scheduled a meeting for March 22, 2006, from 9:30-11AM in the Board's 8th floor hearing room to consider natural gas issues. Conference call capabilities are also available (877-807-5706 participant code – 940541). The meeting is meant to focus on: 1) how customers are supposed to know what price adjustments are in the works from the utilities that might influence their retail choice decision? how are customers and TPSs currently made aware of pending natural gas rate increases/decreases/credits? is there a need to improve the process? how?; and 2) utilities “price to Compare”- is it serving its purpose for residential customers? C&I customers?

New York
Click here to view all past updates.
Staff Report on State of Competitive Energy Markets

Staff issued an outstanding, comprehensive "Report on the State of Competitive Energy Markets: Progress to Date and Future Opportunities." The Report found that "the total real (i.e., inflation-adjusted) electric price for a typical residential retail customer in New York, including supply and delivery charges, has dropped by an average of approximately 16% between 1996 and 2004. Most commercial and industral customers have seen decreases in their real energy bills as well." Additionally, "the overall cost of supply embedded in retail rates in upstate New York was $50/MWh in 1996, prior to restructuring, and the all-in cost of supply in the upstate wholesale market was also $50/MWh during 2002-2004, post restructuring." Staff reports that there are "at least seven ESCOs providing residential customers with electric and natural gas service and at least 12 ESCOs providing non-residential customers with electric and natural gas service within each utility's service territory." Those ESCOs are offering a greater variety of services too - various pricing structures, green power, load control, energy efficiency assistance and appliance maintenance contracts. As to customer switching, Staff reports that, "over 75% of the large electric TOU customer load and over 40% of other business customer load now takes commodity service from competitive energy service companies. The number of residential customer accounts taking electric supply from ESCOs has grown 29.4% in 2005. Fully 100% of large volume natural gas customers are no longer taking their commodity supply from the utility and 18.5% of all other non-residential natural gas customers are now served by ESCOs. The amount of residential natural gas customer load served by ESCOs has reached 16%, which is an increase of 20% from 2004."

Staff makes a number of recommendations to further improve competitive markets including: 1) implementation of an efficient and effective generation siting process; 2) improved demand response through enhanced metering infrastructure, more dynamic pricing structures and improved mechanisms for demand side participation in markets; 3) minimization of wholesale market seams; 4) increase consumer education and awareness; 5) improve price transparency to consumers through continued efforts to fully and separately identify energy supply costs and energy delivery costs; 6) continue statewide implementation of best practices such as time-differentiated pricing, ESCO referral programs and purchase of receivables; 7) update Uniform Business Practices and EDI documents to reflect current Commission policies favoring the use of ESCO consolidated billing practices; and 8) "promote cost and price comparability in a transparent manner between utility and ESCO commodity services and encourage ESCOs to provide more value-added services primarily to residential customers." The full text of Staff's Report is available on the NEM Website.

NFG Proposed Marketer Hedge Program Pilot

NFG filed a proposed marketer hedge program pilot. The program is intended to assist marketers in offering fixed price products to customers. Under the terms of the proposal, NFG would purchase or settle unsubsribed hedges offered by marketers to retail customers. The pilot would be limited to the winter season, November through March. The program total daily volume would be limited to 10,000/Dth per day which is enough to meet requirements for 17,800 residential customers. NFG will host a teleconference on March 14, 2006, at 10AM, to explain its filing. The full text of NFG's Proposed Marketer Hedge Program is available on the NEM Website.

* 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