SB573, which would ban retail marketers from offering electric variable rates contracts for residential customers, passed the Connecticut Senate last week and the Connecticut House earlier this week. SB573 specifically provides that, “On and after October 1, 2015, no electric supplier shall (A) enter into a contract to charge a residential customer a variable rate for electric generation services; or (B) automatically renew or cause to be automatically renewed a contract with a residential customer and, pursuant to such contract, charge such customer a variable rate for electric generation services.”

The bill defines "residential customer" as “a customer who contracts with an electric supplier for generation services at residential premises for domestic purposes only.”

Newly added language to the bill would require PURA to study and develop recommendations on “(1) what type of generation services rate structure is best suited for residential customers who allow a fixed contract with an electric supplier to expire and begin paying a month-to-month rate for generation services from such supplier; and (2) what rate increase is just and reasonable if a generation services rate increase is necessary after the expiration of a fixed contract and such customer begins paying a month-to-month rate. The authority shall report, in accordance with the provisions of section 11-4a of the general statutes, the findings of such proceeding to the joint standing committee of the General Assembly having cognizance of matters relating to energy, on or before January 1, 2016." The full text of SB573 is available on the NEM Website.

The Authority has issued a proposed interim decision in its inquiry into whether the current 25% allocation of capacity to competitive suppliers should be modified. The proposed interim decision pertains solely to the percentage of allocation capacity release available to competitive suppliers for the winter of 2015/2016. The timing of the decision is intended to address the need for competitive suppliers to procure supply and assets to serve customers for winter 2015-16. The Authority noted its concern that, "under the Competitive Suppliers proposal to increase the retail capacity allocation to 100%, the LDCs may not have the assets available to provide the SOLR function if Competitive Suppliers do not deliver gas because of an intraday cut in supply or a failure to deliver." The Authority said further evidence and study would be required before a change in the allocation methodology should be made. Accordingly, the proposed interim decision would retain the current 25% capacity allocation for the winter of 2015/2016. The Authority also noted its intent to issue a Final Decision that addresses numerous issues related to changing the capacity release allocation. The full text of the Proposed Interim Decision is available on the NEM Website.

Executive Order 2015-10 by Governor Snyder has gone into effect, creating the Michigan Agency for Energy. The new Agency shall,

"i. Analyze and make recommendations to the Governor on proposed programs and policies relating to energy, and on the elimination of duplication in existing state programs in these areas;

ii. Directly administer certain programs related to energy, and serve as the coordinating office for all agencies of the executive branch of government that are responsible for programs related to energy; and

iii. Provide information and assistance to all departments and agencies of the executive branch of government related to energy, both directly and by functioning as a clearinghouse for information received from such agencies, other branches of government, other states, and the federal government."

Although the Public Service Commission was transferred to the Agency, by the terms of the Executive Order the PSC shall perform its functions independently and retains its sole jurisdiction over public utilities, common carriers, or similar entities. The full text of Executive Order 2015-10 is available on the NEM Website.

The Commission has scheduled two follow-up meetings in collaboratives on consolidated ESCO billing as well as ESCO provision of service to assistance program participants.

The initial meeting of the collaborative on consolidated ESCO billing (CEB) is scheduled to take place on June 9, 2015. The Commission scheduled a follow-up for July 1, 2015, beginning at 9:30AM at the Commission's Albany headquarters. The first meeting of the collaborative will examine an outline of operational issues associated with CEB that was developed by the utilities. The full texts of the Notice of Collaborative Meeting and Utilities Outline of Operational Issues are available on the NEM Website.

The Commission has also scheduled another follow up meeting on ESCO provision of service to assistance program participants. The collaborative has been looking at issues associated with value-added services and products to be offered to APP customers, implementation of point-of-sale confirmation of APP customers, APP consumer protection, and accelerated switching of natural gas customers. The next meeting takes place on June 25, 2015, at 9:30AM at the Commission's Albany headquarters. The full text of the Notice of Collaborative Meeting is available on the NEM Website.