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May 18, 2012
NEM Summer Policy Conference

NEM's Summer Policy Conference will take place on August 21-23, 2012, in Chicago, Illinois. The Illinois Commerce Commission has confirmed that the entire Commission and its staff will participate and other top State Officials and Stakeholders will be invited. We are also pleased to inform you that the University Club has granted NEM permission to offer rooms at this exclusive Club on a first-come, first-served basis to our members subject to its code of conduct for guests at the Club. All reservations for members who wish to stay in the Club should be arranged with Catalina Aguilar at NEM headquarters. Please also note that we are arranging to have an NEM Member Baseball Game Night, the evening of August 22, 2012, at 7PM, White Sox v. New York Yankees. Please use this hotlink to register.

New Jersey
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Proposed Energy Competition Rules and Amendments

Following its recent readoption of its Energy Competition regulations, the Board has issued new proposed energy rules and amendments for comment. The rule proposals include:
1) to require that change order verification requirements apply to all telephonic enrollments, including customer-initiated calls;
2) to prohibit suppliers from submitting a change order to a utility to reinstate a dropped customer unless it has current authorization to do so and it can provide the utility with proof dated subsuquent to the contested dropnotice that the customer did not intend to change suppliers;
3) to require Suppliers to provide customers with a copy of the contract;
4) to permit a Supplier to renew a contract with a customer or enter into a new contract with a customer using the same methods that are acceptable for switching to a Supplier. The contract shall be sent on or before the date the Supplier submits a change order to the utility and within 24 hours of customer authorization of a contract renewal and may be accomplished electronically, by regular mail, or by hand delivery if the customer signs up in person;
5) to prohibit Suppliers from changing the material terms of a contract without the customer's affirmative consent. Material changes include changes to terms affecting price, deliverability, time period of the contract, or ownership of the gas or electricity;
6) to clarify what constitute "fixed" and "firm" rates;
7) With respect to government aggregation programs:
a) residential customers may not be charged an exit fee for leaving the aggregation program;
b) sample forms, not actual forms, for notifying customers of an aggregation program will be posted by the Board; and
c) proscribes the form and content of notices of a change in pricing structure or energy provider in an aggregation program.

Comments are due July 20, 2012. The full text of the Proposed Energy Competition Rules and Amendments is available on the NEM Website.

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Duquesne Proposed Default Service Plan

Duquesne filed a proposed default service plan for the period of June 1, 2013, through May 31, 2015. Duquesne proposes that there be four default service procurement offerings for residential, small C&I, medium C&I and large C&I customers.

Default service for residentials will be procured through 12-month full requirements supply contracts through semi-annual RFPs. Duquesne proposed to limit the quantity of contracts for delivery beyond May 31, 2015, to provide for 25% of necessary supply to residential default service customers. Residential rates will be adjusted annually and be subject to annual reconciliation.

Small C&I customers default service will be procured through laddered full requirements supply contracts. Fifty percent of the contracts to serve these customers will extend through November 30, 2015. Rates will be adjusted twice per year and subject to annual reconciliation.

Default service for medium C&I customers will be procured through full requirements supply contracts for six month terms with no laddering. The rates will be subject to annual reconciliation.

Default service for large C&I customers will be in the form of day-ahead hourly spot pricing purchased directly from PJM.

Duquesne also proposes to offer the following retail market enhancements:
1) a one time, twelve-month opt-in EGS auction for residential consumers in which EGSs will be required to bid a price at least 5% below the price to compare and provide a $50 bonus to customers remaining in the program for three billing cycles;
2) a standard offer customer referral program for residential customers in which participating EGSs offer customers 7% off the price to compare for 12 billing cycles; and
3) a new/moving customer referral program will be proposed in a separate filing.

Duquesne plans to continue its POR program, its ombudsman, supplier access to consumer information, and consumer education initiatives.

The full text of Duquesne's Default Service Plan Petition is available on the NEM Website.

PPL Proposed Default Service Plan

PPL filed a proposed default service plan for the period running from June 1, 2013, through May 31, 2015. Default service will be procured separately for residential, small C&I, and large C&I customers. Residential and small C&I default service will be procured as a series of load-following contracts obtained through nine and twelve-month term procurements. Default service for large C&I customers will be procured on a real time hourly basis from the PJM spot market. This will be achieved through a single annual solicitation to serve large C&I customers. The Generation Supply Charge to residential and small C&I customers will be adjusted every six months and reconciled every six months on a rolling twelve month basis. The Generation Supply Charge for large C&I customers will be reconciled annually.

PPL also proposes to undertake the following retail market initiatives:
1) consumer education mailing in 2012;
2) implement a new/moving customer referral program;
3) make a one-time customer referral mailing to residential default service customers in 2013;
4) conduct a one-time opt-in auction in November 2013 in which participating suppliers offer residential customers a 6 month fixed price product at a minimum 5% discount from the Price to Compare and a $50 bonus to customers remaining in the program for three months;
5) initiate an on-going standard offer program in 2014 in which participating suppliers offer residential customers a 7% discount from the price to compare for a six month term.

The full text of PPL's Proposed Default Service Plan is available on the NEM Website.

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