The Commission will convene a legislative-style hearing to examine the potential integration of dynamic pricing and the Standard Offer Service ("SOS") procurement for electric generation services as well as opportunities for the competitive retail provision of dynamic pricing to consumers. The hearing will take place on June 16, 2011, at 10AM in the Commission's hearing room. Requests to testify are due June 14, 2011. Topics for discussion will include:

"The potential use of a Critical Peak Rebate ("CPR") rate as the default SOS and resulting rate implications;

The sharing of information regarding dynamic pricing programs with wholesale SOS bidders;

How CPR could be funded;

The willingness of SOS wholesale bidders to offer a CPR rate and assume the risk for funding a rebate program once a valid track record has been established for CPR;

From Pepco's and suppliers' perspectives, the necessary changes and actions needed for the District's 2011-2012 and/or 2012-2013 SOS winter auction, if any, if the Commission decides to implement dynamic pricing within the next two years;

The key factors that will influence wholesale bidders' participation in the SOS auctions in anticipation of future retail rate design changes under dynamic pricing;

The policies necessary to facilitate the sale of dynamic pricing products offered by altemative retail electricity suppliers, and the appropriate role of such suppliers in providing dynamic pricing through competitive offerings and/or through SOS;

Whether or not a new hourly priced service should be offered -- similar to the existing Market Price Service -- as part of SOS and, if so, how broadly available it should be;

The circumstances under which alternative retail electricity suppliers might offer critical peak pricing ("CPP"), and the customer-related information alternative suppliers would need in order to provide CPP; and

The circumstances under which alternative retail electricity suppliers pricing might offer time-of-use("TOU") pricing, either on a stand-alone basis or in conjunction with a dynamic pricing option, and the customer-related information alternative suppliers would need in order to provide TOU pricing."

The full text of the Notice of Hearing is available on the NEM Website.

Last summer the Commission issued an Order clarifying the manner in which the electric utilities were to present Standard Offer Service information on customer bills and the utilities' websites. Subsequently, the Office of People's Counsel filed a petition arguing that certian utilities had provided erroneous SOS information on bills and websites. Upon review the Commission has decided that:

"• Each of the IOUs shall include a true-up factor13 in its SOS price calculations, but only to the extent that such a true-up factor is known.

• Each IOU shall explain on its website what its true-up factor is and what it means, and shall provide a link on the website to the true-up factor tariff page.

• Consistent with the Commission’s prior directive in Order No. 83423, all known future SOS prices shall be included on customer bills and on the IOUs’ websites.

• Each IOU shall include information on its website indicating the start and end date of the weighted average price.

• Each IOU shall post on its website information regarding when SOS Pricing Information will be next updated.

• As previously directed in Order No. 83423, each IOU shall, on both customer bills and its website, include the date beyond which the SOS price is not known.

• Potomac Edison shall hereafter use a single weighted average price, which shall be recalculated shortly after each SOS auction, using a forward-looking, seasonally differentiated weighted average calculated in a manner similar to that described by BGE and the PHI companies.

• Potomac Edison shall modify its supplier worksheet to omit any reference to a “generation price” or the term “price-to-compare.”

With respect to the process and timing for updating the SOS Pricing Information, each IOU shall file a revised tariff with the Commission within five business days of SOS contract approval that reflects the approved SOS prices. Further, within seven business days of SOS contract approval, updated SOS Pricing Information shall be posted on IOU websites and shall appear on customer bills."

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

The gas utilities filed their 2011 Basic Gas Supply Service (BGSS) petitions. All proposed to reduce their BGSS rates effective October 1, 2011, as follows:

Elizabethotwn Gas - BGSS-P rate proposed to be reduced from the current $0.8031 per therm to $0.6924 per therm, inclusive of all taxes.

New Jersey Natural - BGSS billing factor proposed to be reduced from its current pre-tax level of $0.7800 per therm to $0.6650 per therm. NJN also proposes to reduce its pre-tax Balancing Charge from the current pre-tax level of $0.0828 per therm to $0.0789 per therm.

PSEG - Proposed decrease in the BGSS-RSG rate from the current $0.667154 per therm (including SUT) to a charge of $0.654239 per therm (including SUT).

South Jersey - Periodic BGSS charge proposed to be reduced from the current $0.6887 per therm to $0.6493 per therm.

The full texts of the 2011 BGSS Petitions are available on the NEM Website.

The State Energy Planning Board is requesting comments on draft regulations on the conduct of the state energy planning process under Article 6 of the Energy Law. A State Energy Plan is to be issued every four years, the first of which is to be issued by March 15, 2013. The draft regulations set forth the process for developing the State Energy Plan and receiving input including meetings and public hearings. The draft regulations also include information filing requirement for "major energy suppliers." A "Major Energy Supplier" would mean a, "major electricity supplier; major natural gas supplier; major petroleum supplier; major coal supplier; major steam supplier; or major biogas, biofuel, and biomass producer or processor." A "Major Electricity Supplier" would be defined as "any entity other than the Bulk System Operator involved in the generation, transmission or distribution of greater than 10 megawatts electric power, the provision of voltage support, backup or spinning reserve or other grid-related ancillary services for sale into the bulk wholesale electric power system in New York." A "Major Natural Gas Supplier" would be defined as "any Local Distribution Company operating in franchised service territories serving 14,000 customers or more, persons engaged in extraction of natural gas from in-state geologic formations, storage companies, or any intrastate and interstate natural gas pipeline company providing service within and to the State."

The draft regulations would also call for the filing of information on end-use energy efficiency, renewable and emerging technology plans. "The Board, or the Chair as authorized by the Board, from time to time, may require the submission by major energy suppliers and energy service companies and any other entity that the Board deems appropriate to collect information, such as the annual capital, installation, and operational cost per kW and conversion process efficiency, on end-use energy efficiency, renewable and emerging technologies." An "Energy Service Company" is defined as "a person that provides energy commodity services for End-Users and/or finances, installs, implements or otherwise facilitates energy efficiency, cogeneration, on-site energy production, and/or other measures and services for End-Users."

Comments are due July 11, 2011. The full text of the Draft Regulations is available on the NEM Website.