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
BlueStar Energy
Commerce Energy
ConEdison Solutions
CrossFire Group
Customer Link
Direct Energy
Electric America
Elster Electricity
Energy America
Energy Source (Regional Member)
Excelon Corporation
First Energy (Regional Member)
Goeken Group Corp
Goodwatts Energy
IDT Energy
Infinite Energy
Integrys Energy Services
Intelligent Energy
InterContinental Exchange, Inc.
Interstate Gas Supply
IMServ (Invensys)
InBusiness TeleServices (Regional Memembers)
KeySpan Energy
Liberty Power
Matrix Imaging
Media Fusion
New York Energy
New York Mercantile Exchange
Ohms Energy Corporation
Peoples Energy
Pinnacle West
Power Direct Telemarketing
Prebon Energy
ProLiance Energy
Select Energy
Sempra Energy Soulutions
SPi Group
South Star Energy
Total Gas and Electric, Inc.
USCL Corporation
Vectren Source
Washington Gas Energy Services Inc.
WPS Energy
March 7, 2008
Annual Spring Membership Meeting

NEM booked the new Embassy Suites Hotel Washington D.C. Convention Center for the Annual Spring Membership Meeting and Restructuring Conference on April 29 and 30, 2008. This year's theme is "Strategic Energy, Security & Advanced Technology Policies - Think Globally, Save Locally." Please register at this hotlink. A final agenda can be viewed at:

Hotel accommodations have also been arranged at this facility located at 900 10th Street, NW, Washington, DC 20001. NEM has secured preferred hotel rates of $259.00 per night. Please call (202) 739-2001 to make your reservations.

Thus far, we have confirmed the following featured speakers for the event: U.S. Senator Jim DeMint (R-SC), Member, Energy and Natural Resources Committee, US House Majority Whip James Clyburn (D-SC), U.S. Congressman Tim Murphy (R-PA), FERC Commissioner Marc Spitzer, FERC Commissioner Jon Wellinghoff, CFTC Commissioner Michael Dunn, Natural Resources Canada Minister Gary Lunn, David Wales, Deputy Director, Bureau of Competition, Federal Trade Commission, Massachusetts DPU Chairman, Paul Hibbard, New York PSC Chairman, Garry Brown, Texas PUC Chairman, Barry Smitherman and Pennsylvania PUC Energy Advisor, Eric Matheson.

S.2660, Consumer Protection and Cost Accountability Act

S.2660, entitled the "Consumer Protection and Cost Accountability Act," was introduced in Congress and referred to the Senate Committee on Energy and Natural Resources. The bill would amend the Federal Power Act to require FERC to consider whether RTO/ISO rates, "enable the Transmission Organization to provide, or facilitate the provision of, reliable service to consumers at the lowest reasonable cost." "Lowest reasonable cost" is defined as "the lowest total delivered cost to consumers consistent with the provision of reliable service." In making such a determination, FERC would consider a cost-benefit analysis to be submitted by the RTO/ISO demonstrating that consumer benefits outweigh anticipated direct or indirect costs, or that the rate would have a de minimus impact on total delivered costs to consumers. RTOs/ISOs would also be subject to biennial audits to consider how to reduce costs and improve performance. The full text of S.2660 is available on the NEM Website.

NERC Filing on Retail Marketer Registration as LSE

FERC reviewed an appeal by three retail power marketers regarding a determination made by NERC that they were properly registered as load serving entities (LSEs) by ReliabilityFirst Corporation (a Regional Entity) and therefore subject to compliance with LSE Reliability Standards. The marketers had agreed to their registration as purchasing-selling entities, but not to their registration as LSEs. The registry criteria for entities to be deemed LSEs is: 1) peak load greater than 25MW; and 2) to be directly connected to the Bulk Power System. The marketers noted they do not own or operate any physical assets and therefore do not satisfy the criteria. Additionally, other Regional Entities besides ReliabilityFirst affirmatively declined to register the marketers as LSEs.

In its review, FERC reversed NERC's reliability determination for the retail marketers. FERC found that "NERC's determinations were not supported by the record or its own registry criteria," that the registry criteria was inconsistently applied, and that NERC had not adequately identified reliability standards that would be applicable to the retail marketers. However, FERC was concerned about a potential reliability gap in the bulk power system. Accordingly, NERC was directed to file a plan on how to develop a uniform approach for the application of appropriate reliability standards to retail marketers. The full text of the Order is available on the NEM Website.

NERC submitted its plan, recommending a two step process. In the short-term, NERC proposes to initiate a comment process for the purpose of defining "Non-Asset Owning LSEs," and the reliability standards applicable to these entities. It is proposed that the NERC Board consider this change to the registration criteria at its May 2008 meeting and that it subsequently be filed for FERC approval.

In the long-term, NERC suggests that definitions, requirements and applicability sections of reliability standards may need to be changed. As part of its three-year Reliability Standards Development Plan, the issue of registration of retail power marketers/suppliers as LSEs would be addressed. This would begin with a April 2008 LSE and Compliance Workshop to gather stakeholder input. The full text of NERC's Compliance Filing is available on the NEM Website.

Technical Conference on Capacity Markets in Regions with Organized Electric Markets

FERC Staff will convene a technical conference on May 7, 2008, from 9AM to 4PM to discuss forward capacity markets in New England and PJM. The Commission discussed in its recent rulemaking that this technical conference would be held to examine proposals for modifying the design of these markets as submitted by AF&PA and Portland Cement in their comments on the Organized Electric Markets ANOPR. AF&PA, for example, proposed a market structure called a "Financial Performance Obligation" that would be intended to "partially reintegrate capacity and energy for pricing purposes, thereby re-establishing a commercially reasonable cost based relation between these two products." The full texts of the Notice of Technical Conference, AF&PA Comments and Portland Cement Comments are available on the NEM Website.

Click here to view all past updates.
Order on Direct Access Suspension

The Commission issued an order concluding that it does not have authority to lift the suspension of direct access at the current time. Pivotal to this determination was when the Department of Water Resources (DWR) "no longer supplies power" under the terms of the relevant statute, AB1X. The Commission reasoned that, "By virtue of holding legal title to the power and selling it to retail customers, DWR - not the IOUs - supplies the power under AB1X. Therefore, the Commission cannot lift the direct access suspension at this time because the suspension can only be lifted when DWR 'no longer supplies power.' Such is not the case at present time."

Notwithstanding this determination, the Commission decided to precede to Phase II of the case to consider whether there are measures that could be employed to facilitate the removal of DWR from its role as supplier of power under AB1X. This could include assignment and novation of contracts as well as altering the flow of power under DWR contracts whereby title would be transferred to a third party before resale to retail customers. The full text of the Order is available on the NEM Website.

New York
Click here to view all past updates.
Competitive Metering Conference

Staff will convene a technical conference on advanced metering infrastructure (AMI) on April 14 and 15, 2008. The meeting is being held to assist Staff in developing minimum functional requirements for utility AMI systems. Meeting discussion topics will include: AMI systems overview, the relationship of smart grid systems to AMI systems, AMI communication protocols and platforms, meter data access issues as well as AMI meter and system capabilities. Those interested in attending must register by sending an email to The meeting will be held at the Desmond Hotel and Conference Center in Albany. The full text of the Notice of Technical Conference 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