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April 4, 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 this hotlink.

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.

EIA 2007 Status of Natural Gas Residential Choice Programs

EIA issued its 2007 Status of Natural Gas Residential Choice Programs revealing that approximately 13% or 4.6 million of the 35 million residential customers eligible for gas choice were purchasing from a competitive supplier. This represents an 11% percent increase from 2006 in which 4.2 million customers were participating in residential gas choice. Programs in Georgia, New York, Ohio and Michigan accounted for nearly all of the increase. In all but five states and D.C., choice program participation increased or remained the same. 91 marketers provided service to residential gas choice customers in 2007, an 11% increase from the previous year (82 marketers provided service in 2006).

The full text of EIA's 2007 Status of Natural Gas Residential Choice Programs is available at:

EIA Proposed Changes to EIA-910, Retail Gas Marketer Survey

EIA is proposing a three year extension of its natural gas data collection program, including EIA-910, Monthly Natural Gas Marketer Survey. Additionally, EIA is proposing revisions to EIA-910. First, EIA proposes that respondents provide customer count, volume and revenue data for each LDC territory in which it operates, instead of providing that data at the State level as it is currently collected. Second, EIA proposes a change in states for which information is collected. Alaska, California, Maine, Oklahoma and Wyoming are proposed to be added for collection for EIA-910 beginning in July 2009, and Massachusetts and Michigan are proposed to be removed from collection beginning in January 2009. Finally, EIA proposes that volume data on EIA-910 only be collected in Mcf, rather than Mcf or Btu. Comments on EIA's proposal are due June 2, 2008. The full texts of the Comment Request, Proposed Revisions to EIA-910 Instructions and Survey are available on the NEM Website.

FERC Form 552 Technical Conference - Question Submissions

FERC's Order 704 and corresponding Form 552 require annual reporting of wholesale natural gas transactions. Form 552 is due on an annual basis beginning May 1, 2009, for the 2008 reporting year. As had been requested by NEM, Commission Staff will convene a technical conference for the purpose of discussing issues related to preparation and submission of Form 552. The conference will be held April 22, 2008. The conference will be organized to address questions from natural gas buyers and sellers.

Stakeholder questions for consideration at the conference were encouraged to be submitted in advance. NEM asked in its submission: A) How should a “NYMEX Plus” priced contract be categorized under Form 552?; B) How is pricing reported on Form 552 when an initial contract is priced at “NYMEX Plus” with the option for a buyer to trigger a fixed price at a future date?; and C) Are volumes priced as “NYMEX Plus” intended to be excluded from reporting on Form 552 as “Any Type of Financially-Settled Transaction”?.

Registration for those that wish to participate in the technical conference by phone is due April 11, 2008, at:

The full texts of the Notice of Technical Conference and Stakeholder Question Submissions are available on the NEM Website.

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Prehearing Conference in Rulemaking Considering Lifting Direct Access Suspension

A ruling was issued setting a prehearing conference for April 11, 2008, in order to set a procedural plan for Phase II of the rulemaking considering lifting the suspension of direct access. The ruling separates Phase II into two segments. Phase II(a) will examine measures to facilitate ending DWR's role as supplier of power to retail customers. Phase II(b) will examine issues pertaining to the substantive merits of reinstituting direct access and the market prerequisites for this to occur. Parties should file statements by April 8, 2008, with suggestions as to prioritization, sequencing and scheduling of issues for Phase II(a) and (b). The full text of the Ruling is available on the NEM Website.

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Proposed Decision Issued in Consumers Electric Rate Case

The ALJ in Consumers electric rate case issued a Proposal for Decision (PFD). The PFD recommends adoption of a number of retail access program modifications suggested by NEM. These include: 1) retaining the structured billing/complete billing option under its existing terms in conjunction with the establishment of a POR program; 2) exempting residential retail access customers from current exit fee and two-year minimum stay provisions. However, the ALJ reasoned that customers returning to full service should be required to remain on those rates for a minimum of twelve months; 3) increasing consumer education from the Commission to residential customers about choice; and 4) requiring Consumers to provide suppliers with all current balancing and energy delivery requirements data either when the supplier enters the competitive residential electric market or when the requirements change.

The ALJ rejected challenges to Consumers rate de-skewing proposal. The ALJ also accepted Consumers proposed increase to retail access line loss factors, premised on the utility's use of commensurate changes in line loss factors included in full service rates. Exceptions to the PFD are due April 21, 2008, and replies to exceptions are due May 7, 2008. The full text of the Proposal for Decision is available from NEM headquarters.

New York
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NEM Follow-Up Conference Call on Proposed UBP Revisions on Marketing Standards

The Commission proposed revisions to the UBP, including a new Section 10 on Marketing Standards, to address perceived problems with ESCO marketing practices. The proposed changes to the UBP are intended to strengthen residential consumer protections and Commission oversight. NEM previously convened a membership call to begin developing its comments in response. Subsequent to Staff's technical conference in this matter this week, NEM will convene a follow-up call on Monday, April 7, 2008, at 9:30AM EST to finalize its approach to the comments. The dial-in is 913-643-5111 and the passcode is 209353. The full text of the Commission's Request for Comments is available on the NEM Website.

Order Approving Mandatory Capacity Release Program Tariffs

The Commission reviewed the utilities tariffs implementing a mandatory capacity release program for service to core customers. The Commission approved the utilities' tariffs subject to certain modifications.

The Commission clarified that the level of capacity maintained by an ESCO for serving core customers that is eligible for the grandfathering exemption is limited to capacity to supply customer load that the ESCO actually serves. An ESCO's grandfathered capacity level should decline as the core customer load it serves decreases. In order to ascertain the ESCO capacity eligible for grandfathering, the Commission found it more reasonable to examine the prior thirteen months of customer enrollment and usage (as proposed by NFG) rather than review capacity an ESCO holds on a single day (as had been proposed by NYSEG/RGE).

Inasmuch as marketers in the Central Hudson, Keyspan and National Grid territories currently take 100% of their capacity requirements from the utilites, these utilities are required to eliminate grandfathering provisions from their tariffs.

The full text of the Order is available on the NEM Website.

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