NEM filed a brief in the rehearing of ComEd's POR proceeding. The issue on rehearing is whether ComEd’s PORCB tariff that is currently in effect, using the blended discount rate approved by the Commission, should be retained or whether it should be modified to create separate discount rates for residential and nonresidential customers. The ComEd program, in addition to the blended discount rate, also uses a fixed $0.50 per bill charge to recover IT program costs and has an “all in, all out” requirement applicable only to residential consumer participation in POR. And, ComEd requires that a marketer using its consolidated billing system must also participate in POR. Given the Illinois state policy to promote residential energy market competition, NEM urged the Commission to consider the totality of the POR program elements that will directly impact the usefulness of the POR program to suppliers currently serving or considering serving residential consumers in the ComEd service territory and the impact of POR program design on residential consumer migration. The full text of NEM's Brief is available on the NEM Website.

The Commission requested comment on the issue of whether competitive suppliers’ early termination fees (ETFs) should properly be deemed “commodity charges” and therefore within the purchase of receivables (POR) regulations and within the scope of utility consolidated billing. In its comments, NEM recommended that competitive suppliers’ ETFs should properly be deemed commodity charges for the purposes of the POR regulations. NEM explained that the ETF is a function of the commodity-related risk that the marketer bears to provide the electricity/natural gas to the consumer. NEM also explained that the availability of POR in and of itself can act to limit the amount of ETFs a marketer may need to charge because the credit and collection costs that the marketer would otherwise incur to collect from non-paying consumers in a non-POR environment are significantly diminished by the marketer’s participation in the POR program. NEM argued that the utility should terminate service of a consumer for nonpayment of the ETF. Nonpayment for commodity consumed and nonpayment of the commodity risk-related ETF should be treated the same. However, the Commission may find it appropriate to establish a requirement of reasonable ETF limits for the purposes of POR programs. The full text of NEM's Comments is available on the NEM Website.

The Department issued an Order establishing model electric POR program terms and conditions. The model terms are to form the basis of utility-specific program filings for Department review and approval. Under the model terms POR shall be made available to all customer classes. POR will be required only for those customers to which suppliers issue a standard complete bill. The utilities will purchase all existing supplier receivables prior to POR implementation. The utilities must file their POR implementation plans within thirty days of the Order, subject to Department review. Utility information on administrative costs and the proposed amortization period, discount rate percentages and the methodology for their application, and supplier service agreements must be filed within sixty days of the Order. National Grid and WMECO, because of their experience with POR in other jurisdictions, must implement their POR programs within three months of the Department's final decision on their POR plans. NStar and Unitil must do so within six months. The full text of the Order is available from NEM headquarters.