Consumers filed an application requesting an increase in electric generation and distribution rates. Consumers estimates an increase in electric revenue requirements of approximately $143.5 million for a 2008 test year. (Including the sale of the Palisades nuclear plant would reduce base rate revenue requirements by about $167.1 million with a net reduction of $23.6 million). Consumers proposed rates would yield an overall rate of return on total rate base of 7.1% and a rate of return on common equity of 11.25%.

Consumers proposed to simplify and consolidate its rate schedules to implement a "new market-based energy rate, new low income rate, a new educational institution rate, grandfathering of the current senior citizen rate, and rates that are designed to better reflect service voltage and load factor." Consumers sought to modify its rates to reduce cross-subsidization by approximately 20% per year over a five year period. In response to difficulty in projecting participation in retail access, an Electric Choice Incentive Mechanism is sought that would recognize a portion or all of certain positive or negative variances from retail access participation levels used in setting rates. The full text of Consumers Electric Rate Application is available on the NEM Website.

MGU proposed a revision to Section F of its tariff on the Sales and Transportation of Natural Gas. MGU proposed to add language that, "Nominations that exceed the 110% limitation shall be subjected to overrun charges and imbalance penalties, as imposed by interstate pipelines." MGU said the change is reasonable because it conforms to the 110% nomination limitation in place on ANR Pipeline, and therefore, deviations on its system will match tolerance levels established by upstream suppliers. Nominations that exceed the 110% limitation will be accommodated by MGU when "operationally feasible." A public hearing on the proposal is scheduled for April 25, 2007, and interventions are due April 18, 2007. The full text of MGU's Application is available on the NEM Website.

The Energy Master Plan (EMP) Pricing Working Group will hold its initial meeting on Tuesday, April 10, 2007, from 1PM to 4PM in the Board's Newark offices. The group will begin consideration of three Draft EMP pricing objectives:

1) Maintaining electricity prices per unit in New Jersey within 5% of the regional average;
2) Eliminating transmission congestion (where cost effective) by 2020 to equalize wholesale electricity prices; and
3) Maintaining natural gas prices per unit in New Jersey within 5% of the regional average price.

Teleconferencing for the meeting is also available (Dial in - 1-866-255-8320 and passcode 898759).

Attorney General Dunn is calling for the resignation of PUCO Chair Schriber and Commissioners Fergus and Lemmie. The issue arises out of the nomination process. The twelve member council that recommends nominees to the governor met in closed session and used secret ballots. Dunn maintains this is contrary to public meeting laws. With the expectation of a new nomination process, the Governor's spokesman said the Governor's office would be inclined to reappoint the same Commission members. Importantly, the resignations do not effect the validity of prior Commission determinations.