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June 8, 2018
NEM Events

Please mark your calendars and plan to join us for upcoming NEM events. Agendas will be available shortly. Sponsorships are available. Please contact headquarters if you are interested in sponsorship.

NEM’s Summer Executive Committee Meeting and Mid-Atlantic Energy Summit will be held July 25-26, 2018, at the Hyatt Regency Baltimore Inner Harbor. The Draft Agenda is available here. You may register here.

NEM’s Western Energy Policy Roundtable will be held October 24-26, 2018, at Caesars Palace in Las Vegas, Nevada. You may register here.

Administration Action on Coal and Nuclear Generation Facilities

The Trump Administration directed Energy Secretary Perry to take action on "fuel-secure power facilities." A statement from the White House Press Secretary said:

"The United States of America has the most technologically advanced and developed infrastructure in the world, with access to a reliable, dependable, and diversified electric grid.

President Donald J. Trump believes in total energy independence and dominance, and that keeping America’s energy grid and infrastructure strong and secure protects our national security, public safety, and economy from intentional attacks and natural disasters.

Unfortunately, impending retirements of fuel-secure power facilities are leading to a rapid depletion of a critical part of our Nation’s energy mix, and impacting the resilience of our power grid.

President Trump has directed Secretary of Energy Rick Perry to prepare immediate steps to stop the loss of these resources, and looks forward to receiving his recommendations."

This Statement coincided with the disclosure of a draft plan from the DOE on the subject. The draft plan describes a 24 month requirement for grid operators to purchase power from certain coal and nuclear facilities under DOE emergency powers. Specifically,

"To promote the national defense and maximize domestic energy supplies, federal action is necessary to stop the further premature retirements of fuel-secure generation capacity while DOE, in collaboration with other federal agencies, the States, and private industry, further evaluates national security needs and additional measures to safeguard the Nation's electric grid and natural gas pipeline infrastructure from current threats. To that end, as described below, it is necessary and appropriate for the Department to: (1) issue orders pursuant to its authority under the Defense Production Act of 1950 (DPA) and the Federal Power Act (FPA) to temporarily delay retirements of fuel-secure electric generation resources, while we (2) continue our analysis of, and take prompt action to address, the comprehensive resilience needs of our electric generation system, including specific actions to support defense critical energy infrastructure in the event of attack.

The Department is exercising its DPA and FPA authority by directing System Operators (as defined in the Directive), for a period of twenty-four (24) months, to purchase or arrange the purchase of electric energy or electric generation capacity from a designated list of Subject Generation Facilities (SGFs) sufficient to forestall any further actions toward retirement, decommissioning, or deactivation of such facilities during the pendency of DOE's Order. DOE also is directing SGF's outside of the RTO/ISO territories to continue generation and delivery of electric energy according to their existing or recent contractual arrangements with Load-Serving Entities. DOE's Order establishes a Strategic Electric Generation Reserve (SEGR) to promote the national defense and maximize domestic energy supplies. This prudent stop-gap measure will allow the Department to further address the Nation's grid security challenges while the Order remains in force."

The full text of the Draft DOE Plan is available on the NEM Website.

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Staff Submits RM62 Follow Up Filing

The Commission convened an RM62 rulemaking session last month to consider certain retail market enhancements. As the meeting drew to a close, Staff was directed to prepare certain information to facilitate future discussion and review of the issues. Staff was asked to compile a list of issues stakeholders had identified to potentially be considered in a subsequent Phase III as well as to report on the utilities POR reconciliation balances. Those balances are a potential source of funding for retail market enhancements being proposed, seamless moves and instant connects. Staff filed the follow up information yesterday.

Regarding Phase III issues, Staff identified:
"* The definition of energy consultant and whether there should be a bonding requirement for an entity that fills this role;
* Development of an application to become an energy consultant;
* Development of brochure containing information for consumers about Historical and Interval Usage data and its sharing with third-party service providers;
* Plan of development and improvement for the Commission’s web portal to include both gas and electricity supply, contracting information, and customer education regarding Choice;
* Treatment of discrepancy of offers on the Commission’s web portal as compared with the retail supplier’s web page;
* Web-based and wallet enrollment;
* Advance electronic notice of rate changes;
* Limited additional non-residential consumer protections;
* Method of retail choice budget billing; and
* Method of utility cost recovery where required for items in RM62."

With respect to POR reconciliation balances, Staff reported that BGE has collected over $5 million. Pepco has collected nearly $1.4 million, and Delmarva has collected nearly $700,000.

The full text of Staff's RM62 Filing is available on the NEM Website.

New York
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Data Security Agreements and Vendor Risk Assessments

NYPSC Staff sent two emails this week following up on discussions from the May 31st meeting on the utilities proposed Data Security Agreements (DSA) and Vendor Risk Assessments (VRA). The Staff emails reported that the utilities committed to circulating a standard, consolidated VRA by today, June 8th, which they "expect" to be returned by June 30th. The utilities agreed to extend the time for return of the DSA to July 31, 2018. Comments on the DSA are due June 22nd, and the utilities will endeavor to respond to the comments by approximately July 9th. An all-day meeting to review comments on the DSA will also be scheduled. The utilities suggest it be held later in the week of July 9th. Materials relevant to the discussion of the DSAs/VRAs are being housed on a webpage of NYPSC EDI Working Group which can be accessed here.

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