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July 26, 2019
NEM Fall Leadership Roundtable and Executive Committee Meeting

NEM will convene a Fall Leadership Roundtable and Executive Committee Meeting on October 16-18, 2019, at the The Hotel Hershey in Hershey, Pennsylvania.

Confirmed Speakers thus far include:
1. Neil Chatterjee, Chairman, FERC
2. Andy Ott, Chairman, PJM
3. PAPUC Commissioners & Staff
4. K.R. Sridhar, Founder and CEO, Bloom Energy
5. Don Dodge, Developer Advocate, Google
6. John Chambers, Chairman Emeritus, CISCO, CEO, JC2 Ventures
7. Christian Belady, P.E. General Manager, Microsoft

The room block is now set up to accept reservations at The Hotel Hershey. The room block cut-off date is Friday, September 20, 2019. Reservations can be made by calling 855-729-3108 and asking for the room block for the NEM Fall Policy Leadership Roundtable 2019 at The Hotel Hershey. Alternatively, reservations can be made at:

Additional details and a draft agenda are forthcoming. You may register at this link.

Order on PJM 2019 Base Residual Auction

FERC denied a motion by PJM to run its 2019 Base Residual Auction (BRA). In a June 2018 Order, FERC found that PJM's tariff "unjust and unreasonable and unduly discriminatory because it fails to protect the capacity market from the price suppressive impacts of out-of-market support to new and existing resources" and initiated paper hearings. No Commission decision has yet been issued.

In its motion, PJM explained that it intended to run the BRA in August 2019 for the 2022-2023 delivery year under its existing tariff. PJM sought confirmation that, to the extent the Commission has not established a replacement rate prior to the August 2019 BRA, any replacement rate later established would be applied prospectively and would not require PJM to rerun the August 2019 BRA.

In its decision on the Motion, FERC directed PJM "not to conduct the 2019 BRA in August." Moreover, the Commission "den[ied] PJM’s request to clarify that any replacement rate ultimately adopted in this proceeding operate prospectively and would not require PJM to rerun the August 2019 BRA. We will not rule prematurely on the issue of any appropriate remedy prior to rendering a determination on the merits of a replacement rate."

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

FERC Grants ConEd Tariff Waiver to Correct Erroneous Data that Led to Higher NYISO Bills

FERC issued an order this week granting ConEd’s request for a one-time waiver to correct Load Serving Entity (LSE) bus metering data for the month of April 2018 for the LSEs that purchased energy on behalf of retail customers in Con Edison’s service territory. This metering data is used by NYISO to calculate each LSE’s hourly consumption obligation, which NYISO then bills to each LSE. Under the waiver, NYISO will be permitted to use corrected metering bus data, and issue revised invoices for that period.

The erroneous April 2018 bus metering data value ConEd originally submitted to NYISO resulted in a few LSEs (including ConEd) receiving lower energy bills from NYISO for April 2018, and the rest of LSEs serving retail customers receiving higher energy bills from NYISO. Once the April 2018 bus metering data value is corrected, those LSEs that previously overpaid as a result of ConEd’s error are expected to experience a decrease in their NYISO energy bill.

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

Click here to view all past updates.
Retail Electric Competition Workshop

The Commission will hold a Retail Electric Competition Workshop next week, on July 30th at the Commission's Phoenix office. NEM will participate in the Workshop and present its recommendations.

Staff filed proposed revisions to the Commission's retail electric competition rules for discussion at the workshop. Notable among the proposals is to restrict customers eligible to shop to non-residential customers with monthly demand of 100 kW or more with the exception of allowing consumers to aggregate demand to meet a minimum aggregation threshold of 1MW. The proposed rules would also permit municipal aggregation for residential, business and municipal accounts. The proposed rules do not include a start date for competition. Under the proposed rules, utilities would be providers of Standard Offer Service and would be required to unbundle rates.

This week, in anticipation of the workshop, Commissioner Olson submitted a letter to the docket about Staff's proposed rule revisions. His letter said,

"I view the framework in Staff's initial proposal to be a very modest increase in energy choice for some commercial customers. This initial proposal essentially removes the heart of the competition rules which intended to eliminate monopoly service territories and establish a regulated playing field for energy competition open to all customers. It is my hope that, instead of simply considering this limited proposal which would benefit only a small number of commercial customers, we consider a return to the central purpose of the competitive rules to restructure our form of regulation entirely. In my view, it is time to address whether there is any justification for continuing the monopoly system in a time when technology allows for a healthy, robust and reliable market in energy for all customers.

In the docket and in our upcoming workshops, I would like parties to consider a regulated competition framework that includes the following basic tenets:
1) Incumbent utilities that ultimately operate only transmission and distribution;
2) Energy Service Providers (ESPs) licensed by the Commission who serve both residential and commercial customers;
3) ESPs that provide generation, billing, rate design, and customer service;
4) Commission sets and approves maximum and minimum rates by evaluating fair value of property, market conditions, and the long-run cost of providing service;
5) A transition to competition that allows utilities to offer a standard service for a period of time until all customers shop for their energy;
6) Incumbent utilities can serve as Provider of Last Resort for a period of time until the responsibility can be shared among all ESPs;
7) A transition from the Arizona ISA to forming or joining an RTO."

The full texts of Staff's Proposed Retail Electric Competition Rule Revisions, the Notice of Workshop and Commissioner Olson's Letter are available on the NEM Website.

Click here to view all past updates.
Dominion Files Renewable Energy Tariff Application

Dominion filed an application for approval of a 100 percent renewable energy tariff, designated Rider TRG that would permit participating customers to voluntarily elect to purchase 100 percent of their energy and capacity needs sourced from renewable energy resources. Dominion's filing is of particular significance because if the Commission approves Rider TRG as meeting the statutory definition of a 100% renewable energy tariff under Virginia Code § 56-577 A 5, then it would impact the Company’s obligation to allow retail choice to customers seeking to purchase renewable energy.

"Rider TRG customers will receive 100 percent of their energy and capacity from a portfolio of resources owned or contracted for by the Company that meet the definition of renewable energy in Va. Code § 56-576 (the “TRG Portfolio”)." Dominion projects that the TRG Portfolio will be able to meet the capacity and energy requirements of approximately 50,000 residential customers or their commercial equivalent. Customers on Rider TRG will pay a premium over standard service that is based on the prevailing market value of retail renewable energy, using the market value of RECs as a proxy for this premium as well as an additional balancing charge. Eligible customers must have a peak demand of less than five megawatts in the most recent twelve-month billing period.

Dominion states that its 100 percent renewable energy tariff is structured to operate and function like the 100 percent renewable tariff that was approved for APCo.

The Commission has established a procedural schedule for the case as follows: September 17 - notice of participation due; October 17 - respondent testimony; October 31 - Staff testimony; November 12 - Dominion rebuttal testimony; November 14 - written comments; and November 21 - public hearing.

The full texts of Dominion's Application and the Procedural Order are available on the NEM Website.

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