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June 27, 2008
NEM Summer Executive Committee Meeting

Proliance has generously offered to host our Summer Executive Committee Meeting and Policy Leadership Elections on July 29 and 30, 2008, in downtown Indianapolis, Indiana. Please register for the meeting at this hotlink. The meeting will take place at the law offices of Krieg Devault LLP. The Draft Agenda is available at this hotlink.

NEM has a courtesy room block until July 5, 2008, at the Embassy Suites at a discounted rate of $139/night. You must make your reservations by dialing them directly at (317) 236-1923 at your earliest convenience as they will release the rooms after the July 5 date, and the costs may increase. The location of the hotel is 110 West Washington Street in downtown Indy, 3 blocks from the meeting place.

There is no charge to attend this meeting. Please help us thank John Talley, President, and Kyle Hupfer, General Counsel, of Proliance for their generosity in hosting this meeting.

The Meeting will start between 9 and 10AM on Tuesday morning, July 29th, and adjourn before noon on Wednesday, July 30, 2008. An agenda and draft leadership nominations will be circulated, and each member is requested to forward nominations for policy leadership positions as well as issues that NEM must address and prioritize for the coming year.

The Summer Executive Committee Meeting is where the Executive Committee members agree on mid course corrections on the priorities for NEM advocacy for the remainder of 2008 and members who wish to sponsor upcoming events give us an indication so we may start planning the meetings and events for the remainder of 2008 and 2009.

If you have questions or would like to help plan or co-sponsor an event for the members, please contact headquarters. The upcoming meeting should be very substantive, and your participation is encouraged and would be appreciated.

Columbia Utilities Elected to NEM Executive Committee

NEM is pleased to announce that Columbia Utitilies has been elected to NEM's Executive Committee. Columbia Utilities will be represented within NEM by Robert and Ronald Palmese.

Columbia Utilities is a Brooklyn, New York-based Energy Marketer. Owned by the same family for 70 years, Columbia Utilities began operations in 1938 selling Fuel Oil throughout the 5 boroughs of New York City. In the year 2000, Columbia Utilities entered the de-regulated natural gas market in New York. Following the success of their entry into Natural Gas, Columbia Utilities added the electric market to their portfolio, making them one of the few independent suppliers to sell electricity, natural gas and fuel oil in New York State.

H.R.6258 Introduced on Deployment of Carbon Capture and Storage Technology

H.R.6258 was introduced in the House with the purpose of accelerating the deployment of carbon capture and storage systems. The bill calls for the creation of a Carbon Storage Research Corporation comprised of electric distribution utilities. The Corporation would be required to collect an assessment from distribution utilities for all fossil fuel-based electricity delivered directly to retail customers, targeted to collect $1.0 billion annually. The Corporation would be authorized to collect assessments for 10 years to fund its operations, including the issuance of grants and contracts for the purpose of accelerating commercial demonstration or availability of carbon dioxide capture and storage technology. Distribution utility costs to comply with the legislation would be deemed, "necessary and reasonable costs and shall be fully and contemporaneously recoverable in all jurisdictions." The full text of H.R.6258 is available on the NEM Website.

FCC Amends DNC Registry Rules

FCC issued an amendment to its Do Not Call (DNC) registry rules that will require sellers and/or telemarketers to honor registrations on the national DNC registry indefinitely (as opposed to the previous five year registration period). FCC notes that its action is consistent with the Do Not Call Improvement Act of 2007 passed by Congress last year, which prohibits removal of numbers from the DNC registry unless the numbers are disconnected and reassigned or otherwise invalid. The full text of the Amended DNC Rule is available on the NEM Website.

FERC Order 712 - Capacity Release Rules

FERC issued Order 712, adopting final capacity release rules, deciding to: 1) exempt capacity releases made under state-approved retail access programs from the tying prohibition and bidding requirements; 2) permanently remove the rate cap on short term capacity release transactions but retain the rate cap on long term capacity releases and primary sales of capacity by pipelines; 3) exempt capacity releases made as a part of asset management arrangements (AMAs) from the tying prohibition and bidding requirements; 4) define exempt AMAs so as to allow supply side AMAs; and 5) not apply the tying prohibition to conditions associated with gas inventory held in storage for releases of firm storage capacity. The full texts of Order 712 and NEM's Summary of Order 712 are available on the NEM Website.

Detailed Agenda for FERC Regulatory Compliance Workshop

FERC Staff will hold a workshop on July 8, 2008, from 9AM to 1PM on federal energy regulatory compliance, with a particular emphasis on the elements of a sound compliance program. The first panel will focus on "Designing and Developing a Compliance Program," and the second panel will focus on "Implementing and Maintaining a Compliance Program." The full text of the Second Notice of Regulatory Compliance Workshop is available on the NEM Website.

Click here to view all past updates.
Legislature Considers Retail Access Programs

S.2768 has been passed by the State Senate and is due to be reviewed by the House this week. The legislation would require electric utilities to make a marketer referral program available to residential and small commercial customers that contact the utility to initiate service, reinstate service, make a rate inquiry or learn information about energy efficiency. The electric utility would offer consumers the option to learn about opportunities to enroll with a competitive supplier, and those consumers expressing an interest would be informed of offers by participating competitive suppliers. Competitive electric suppliers would also be given the opportunity to list electric offers to residential and small commercial customers on customers' electric utility bill. The legislation also provides for the institution of a purchase of receivables program for electric suppliers using the "complete" billing method. The DPU would be required to conduct a hearing to examine the impacts on the competitive retail electric marketplace of the electric utility default service adjustment mechanism and changes that would enhance price signals. The DPU is to file its findings with the legislature. The full text of S.2768 is available on the NEM Website.

New Jersey
Click here to view all past updates.
Board Adopts Procedural Schedule for 2009 BGS

The Board adopted a procedural schedule for the examination of the 2009 BGS procurement process. Utilities and other stakeholders are required to file proposals for procurement of the remaining one third of the BGS-FP requirement and the annual CIEP requirement for the period beginning June 1, 2009. Parties are requested to comment on barriers to switching encountered by customers between 1250kw and 1000kw as well as benefits/problems associated with lowering the CIEP threshold from 1000kw to 750kw. Comments are also requested on Boston Pacific's proposed modifications to the BGS auction process pertaining to the CIEP price levels, round one bidding, disclosure and web-ex conferences. All of the above submissions should be filed with the Board by July 1, 2008.

The prelininary 2009 BGS schedule is as follows:

July 1, 2008 - BGS 2009 filings
July 18, 2008 - Discovery request deadline
August 1, 2008 - Discovery response deadline
August 22, 2008 - Initial comments on proposals
TBA - Legislative-type hearing
TBA - Public hearing
September 26, 2008 - Final Comments
October 10, 2008 - Reply Comments
Mid-November 2008 - Board Decision on BGS Proposals
End of November 2008 - Utility Compliance Filing
Mid-December 2008 - Board Decision on Compliance Filing
February 2009 - Procurement process for BGS supply requirements

The full text of the Order Establishing 2009 BGS Procedural Schedule is available on the NEM Website.

New York
Click here to view all past updates.
Commission Order Adopting Energy Efficiency Portfolio Standard

The Commission issued an Order adopting an energy efficiency portfolio standard for the State. The Commission formally adopted the goal of reducing electricity usage by 15% statewide by 2015, with identified interim three-year targets for MWh reduction. The Commission approved certain "fast track" energy efficiency programs for immediate implementation. It was also decided that NYSERDA and the utilities should be efficiency program administrators. Programs should be designed to accommodate independent program administrators as well, based on a Commission finding that, "independent program administrators or service providers may potentially offer the possibility of additional diversity and competitive pricing." The full text of the Order is available on the NEM Website.

ConEd Files Market Supply Charge Proposal

As required in its last electric rate case, ConEd filed a Market Supply Charge (MSC) revision proposal. ConEd was required to submit a plan, "that revises its Market Supply Charge so that the Market Supply Charge reflects actual day-ahead markt prices that were in effect during each customer's billing period." Under the proposal, the energy rate component of the MSC would be changed such that, "energy prices will be developed for each rate class using NYISO day-ahead hourly energy prices and hourly weights developed from class-specific load shapes . . . and adjusted for losses." With respect to capacity prices, the proposal would call for estimated capacity prices to be set for each six-month capability period based on the strip auction price. The full text of ConEd's MSC Proposal is available on the NEM Website.

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