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June 18, 2010
NEM Upcoming Events

NEM is planning Industry Policy Leadership Conferences in Pennsylvania and Illinois over the coming months. Please mark your calendars for July 14 and 15, 2010, in Chicago, Illinois. The conference will take place at the University Club of Chicago on 76 East Monroe Street. The Agenda is hotlinked here. You may register for the Summer Conference at this hotlink. Many thanks to Gateway Energy Services, U.S. Gas & Electric and Wal-Mart for sponsoring this Conference.

Please also mark your calendar for October 18-20, 2010, for Harrisburg, PA. The conference will take place at the Hilton Harrisburg on One North Second Street. You may register for the Fall Meeting in Harrisburg at this hotlink.

Our Annual Winter Executive Committee Meeting is scheduled for January 17-19, 2011, in Miami at the famous Doral Hotel and Resort. Many Thanks to Doug Marcille, Vice Chair of NEM’s Executive Committee and CEO of US Gas and Electric for hosting this upcoming Executive Committee Meeting.

Inktel Direct Joins NEM

NEM is pleased to announce that Inktel Direct has joined the Association. Inktel Direct will be represented by J. Ricky Arriola, President and CEO; Dan Arriola, Executive Vice President; Luis Gonzales, Senior Vice President of Call Center Operations; Randy Johns, Vice President, Operations; and Summer Dennis, Vice President of Client Services.

Inktel Direct’s existing partnerships with the energy industry’s leading firms and its desire to partner with like-minded quality companies prompted the desire for membership. Offering contact center, fulfillment and eCommerce business solutions, Inktel Direct has partnered with some of the leading energy retailers in the industry to provide strategic contact center and fulfillment services.

Inktel Direct is a leading business process outsourcer specializing in marketing and governmental services. As one of the top outsourcers in the United States, Inktel Direct provides Fulfillment, Contact Center, Direct Mail/Lettershop, E-commerce and Graphic Design solutions to many Fortune 500 companies, federal/state/local government agencies, not-for-profit agencies and other leading organizations. The rapidly growing organization has received multiple awards and recognition including the “Best Company to Work For” in all of Florida, the "Best Place to Work" in South Florida for two years in a row and one of Crain’s Business Magazine’s “Best Places to Work” in Chicago.

Clarification of Form 552 Natural Gas Reporting

FERC issued Order 704-C clarifying outstanding issues associated with reporting on Form 552, which requires market participants with reportable physical natural gas purchases and sales equal to or greater than 2.2 trillion TBtus to report certain information on an annual basis. In Order 704-C, FERC clarified that: 1) unexercised options to take gas under a take-or-release contract are exempt from reporting; 2) exempt unprocessed natural gas transactions are defined as those involving gas that is both not yet processed and still upstream of a processing facility; 3) cash-out and imbalance transactions are exempt from reporting; and 4) references to blanket sales certificates have been removed from Form 552, which effectively exempts small entities from reporting that were otherwise obligated solely by virtue of the blanket sales certificate. The full text of Order 704-C is available on the NEM Website.

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BGE Petitions for Identical Electric and Gas POR Implementation Date

BGE filed a petition with the Commission requesting an identical implementation date for its electric and gas POR programs. The Commission issued an Order approving discount rates for BGE's electric program last week but has not yet acted on BGE's gas POR program filing. BGE notes that it has designed, programmed and tested the electric and gas programs simultaneously. Additionally, "aspects related to billing, such as calculating and generating bills, purchasing receivables, and posting payments are very difficult to separate. Once implemented, BGE will be purchasing all supplier receivables using BGE's consolidated billing from the effective date going forward. BGE's programming for POR does not allow for any current energy charges on BGE's bill not to be purchased. Put another way, once POR is implemented, BGE will not have the ability to purchase receivables associated with one fuel type and apply the previous payment posting to the curretn receivables of another fuel type." The full text of BGE's Filing is available on the NEM Website.

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NEM Comments on Electric Utilities Proposed POR Model Terms

NEM filed comments on the electric utilities proposed Model Terms and Conditions for POR programs. In the comments NEM requested that the utilities provide examples of the discount rate calculation under current conditions pursuant to the Model Terms to allow the stakeholders to make a practical evaluation of what the utilities have proposed. NEM also recommended that:
1) The Department and the utilities assign a high priority to the implementation of the POR programs for completion by a date certain in order to expedite competitive entry and enhance the availability of competitive energy options for consumers;
2) POR programs should include charges for “Generation Service” as well as demand response and renewable energy products;
3) The availability of rate and bill ready billing at each utility will facilitate competitive entry and maximize the ability of multiple marketers to successfully make competitive offerings consistent with their individual business plans;
4) With respect to the proposed supplier payment calculation formula and methodology: a) late payments should be included as a factor in the computation of the uncollectible discount rate applied to supplier payments under the proposed supplier payment formula; b) the Administrative Cost Percentage component encompasses one-time costs and should have an explicit sunset date; and c) the POR program should mirror the utilities’ current practice with respect to uncollectibles and whether the utilities’ uncollectibles are subject to reconciliation. The full text of NEM's Comments is available on the NEM Website.

New Jersey
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Conference on Electric Generation and Capacity Needs

The Board will convene a technical conference to review the state's electric generation and capacity needs on June 24, 2010, at 9AM in the Board's Hearing Room. The conference will consist of three panels. The Capacity Issues panel will discuss the state of wholesale electricity markets in the state and whether there will be adequate supply resources to meet forecasted demand. The Potential Obstacles panel will explore what, if anything, is hindering the development of supply resources, such as project financing, environmental constraints, and siting issues. The Possible Solutions panel will discuss how to attract the development of new capacity resources. Comments on the issues raised are due July 2, 2010. The full text of the Notice of Technical Conference is available on the NEM Website.

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