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April 14, 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, 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., Northwestern University.

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."

Staff Meeting on NYISO Netting Bilaterals Project

Staff will hold an informal meeting on the NYISO's timetable for implementation of the Netting Bilaterals Project. The meeting will be held April 20, 2006, from 9AM to 10AM in Room 3M-3. Teleconferencing is available for the meeting - at dial in 888-396-9924 and passcode 37087. The full text of the Meeting Notice is available on the NEM Website.

Click here to view all past updates.
Governor Calls for State Energy Plan

The Governor issued a directive that charged the Commission with developing a state energy plan. The plan is to address short and long term needs of customers in "an optimum manner that assures a reliable, safe, clean, and affordable supply." Additional issues to be addressed include development of the electric infrastructure, energy efficiency, alternative energy technology, and renewable energy technologies. The Commission is required to develop a renewable portfolio standard that "establishes targets for the share of this state's energy consumption derived from renewable energy sources." The Commission's plan must also identify legislative or regulatory changes needed for its implementation as well as financial, funding or incentive mechanisms to help meet future energy needs. The full text of the Executive Directive is available on the NEM Website. The proposed plan is due December 31, 2006.

Click here to view all past updates.
Pike County Aggregation Pilot

The Commission issued a tentative Order on a proposal for an opt out retail aggregation program for Pike County customers. In the Order the Commission noted “its continued support for the development of wholesale competitive markets and its reliance on them in setting retail prices.” The Commission determined that a retail aggregation bidding program “may be appropriate at this time in Pike County’s service territory” and scheduled hearings for this week to aid in its final decision. If the Commission approves the opt-out aggregation program, it proposes that competitive bids would be due by April 26, 2006. The Commission was undecided as to whether the program should extend for one or two years. Qualified bidders would be required to demonstrate residential service capability. The Commission tentatively concluded that, “only customers with a higher price to compare, based on historical usage, relative to the winning bid price be subject to any approved opt-out provision,” and that customers currently served by a competitive supplier should be excluded from the aggregation pool. It also rejected the proposal to impose an exit fee.

Also significant, the Commission found that, “because Pike County agrees to purchase the receivables of the winning EGS in the aggregation program, it may be appropriate to allow termination of service for non-payment of both supplier and utility charges in the aggregate.” The Commission proposes that the winning bidder would be provided with customer names, billing and service addresses, account number and rate classes to send out disclosure statements and sales contracts to prospective customers. If an opt out program is adopted, the Commission proposes that customers choosing to opt out would notify the aggregator of that choice. The Commission was also interested in obtaining information related to the operation of the O&R program in New York and its transferability to Pennsylvania. The full text of the Tentative Order is available on the NEM Website. A final Order is expected April 20, 2006.

Natural Gas Stakeholders Subgroup Meetings Scheduled

Natural gas stakeholder subgroup meetings have been scheduled as follows:

Cost of service subgroup - Friday, April 28, 2006 at 10AM (Two hours)
Dial-in 1-866-844-1871, PIN 6072#

Intercompany subgroup – Thursday, April 27, 2006 at 1:30PM (Two hours)
Dial-in 1-866-224-4890, PIN 4371#

Those planning to attend in person are requested to RSVP in advance so adequate room facilities can be arranged.

Click here to view all past updates.
Comments Sought on Competitive Market Development

As part of its statutory obligation to prepare an annual report to the legislature on electric restructuring, the Commission is seeking comments on competitive market development. The Commission is requesting comments “regarding national, regional, or Virginia restructuring efforts, policies, activities, or events. Because of the current status of high market prices, recent auction results within neighboring states, some experience with PJM, and the continued lack of competitive activity in and around Virginia, consider the Commonwealth’s statute and offer any thoughts or recommendations, positive or negative.” Comments are due May 12, 2006. The full text of the Request for Comments is available on the NEM Website.

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