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August 10, 2007
HR3221 Passed by the House

HR3221, the ‘‘New Direction for Energy Independence, National Security, and Consumer Protection Act’’ and the ‘‘Renewable Energy and Energy Conservation Tax Act of 2007" was passed by the House last weekend. HR3221 makes provision for: 1) a federal renewable portfolio standard beginning in 2010 for retail electric suppliers (defined as "a person that sells electric energy to electric consumers (other than consumers in Hawaii) that sold not less than 1,000,000 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year") beginning at an annual percentage of 2.75% and increasing up to 15% for the year 2020 and thereafter through 2039; 2) natural gas utilities rates to align incentives with energy efficiency goals; 3) a national policy in support of electric grid modernization to increase digital information and controls technologies and for sharing real time pricing with consumers; 4) establishment of a Grid Modernization Commission to facilitate national adoption of smart grid standards, technologies and practices and to create a National Action Plan for Demand Response; 5) lighting and appliance efficiency standards; 6) residential, commercial and federal building efficiency standards; 7) a carbon-neutral federal government, based on findings of serious harms associated with global warming; and 8) solar energy research and development. The full text of HR3221 is available on the NEM Website.

PJM Settlement Offer on Market Monitoring Unit

In an attempt to resolve outstanding complaints filed with FERC, PJM filed an offer of settlement on its future market monitoring unit (MMU) structure. The settlement would establish an external market monitor, as a separate legal entity independent from PJM. PJM's oversight would be limited to administration of the market monitor's contract by its Board. The present PJM market monitor would be offered the role of head of the external MMU. The MMU would have exclusive control over data and information systems it uses, subject to confidentiality rules. The full text of the PJM's Settlement Offer is available on the NEM Website.

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NSTAR Petition on Wind Power Contracts and Green Power Program

NStar filed a petition requesting approval of two wind power contracts that would provide 60MW of renewable generation supply and associated renewable energy credits, at a fixed price for a ten year term, for use within its Basic Service supply portfolio. NStar requests approval of the contracts by October 12, 2007. NStar also proposes to establish NStar Green, a program that would allow Basic Service customers to designate that either 50 or 100 percent of their supply needs be satisfied using renewable generation resources. Customers that participate in the program would pay a rate currently estimated to exceed basic service rates by $1.75 per kWh and $3.00 per kwh, for the 50 percent and 100 percent supply options, respectively. The Green Service Rider is proposed to become effective January 1, 2008. DTE will hold a public hearing to receive comments on the filing on August 20, 2007, to be immediately followed by a procedural conference. Written comments should also be submitted by August 20, 2007. Petitions to intervene are due August 16, 2007. The full texts of NStar's Petition and Notice of Filing are available on the NEM Website.

New Jersey
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BGS Public Meeting

The Board will hold a "legislative-type" hearing on Basic Generation Service for the period beginning June 1, 2008. The hearing will take place September 20, 2007, at 10AM in the Board's 8th floor hearing room. The purpose of the hearing is to receive comments on the utilities' BGS proposals (Joint Utility BGS Filing, the BGS-FP Pricing Factors, and the Utility-Specific Addenda) and other alternative proposals. Board President Jeanne Fox will chair the meeting. Interested parties will have a fixed time alloted to make their comments followed by questions from President Fox. Those that wish to participate should contact by September 18, 2007. Prepared comments to be referenced at the hearing should be sent to the electronic list server by September 18, 2007. Final comments on the BGS proposals are due September 28, 2007. The full text of the Notice of Hearing is available on the NEM Website.

New York
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Reorganization of Department of Public Service

In an open letter to stakeholders, Chairwoman Acampora announced that the Department of Public Service has undergone a reorganization.

Acampora stated, "One of the most important goals in this reorganization is to review and improve our efforts to increase energy efficiency. In addition, we must consider concerns about greenhouse gas emissions, the vulnerability of the electric system to supply disruption, and the need for new investment in infrastructure and supply. The restructuring is designed to ensure that these needs are met.

As part of the reorganization, we have created a new departmental office to be known as the Office of Energy Efficiency and the Environment. This new office focuses on developing and pursuing energy efficiency initiatives and ongoing renewable energy initiatives. It works closely with other environmental priorities, such as the Regional Greenhouse Gas Initiative.

We also created a new office known as the Office of Electric, Gas and Water, which combines the relevant functions of the previously existing Office of Gas and Water with the relevant functions of the Office of Electricity and the Environment. This new office serves as the locus for service reliability, resource adequacy, and rate issues for the electric, gas, steam, and water industries.

We created a new entity within the Executive Office called Utility Rates and Service. It oversees four separate offices: Accounting, Finance and Economics; Electric, Gas and Water; Energy Efficiency and the Environment; and Telecommunications."

Acampora noted that, "we also expanded the role of our Policy Development group to include inter-governmental relations and which oversees the Office of Consumer Services and the Office of Utility Security. We also created a new Public Involvement Program to be managed by our Public Affairs Office, working in conjunction with Consumer Services and the Office of Hearings and Alternative Dispute Resolution.

The Public Involvement Program is a comprehensive way to further strengthen our already existing ability to gather input from and to get information to the general public. Clearly, it is critical for the Commission to have the benefit of comprehensive public input, and the Public Involvement Program will be one way to do just that."

The full text of Chairwoman Acampora's Open Letter is available at:

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Commission Issues Keystone Connection News Letter

The Commission issued the summer edition of the Keystone Connection news letter. The news letter covers recent Commission actions and utility filings in the markets under its jurisdiction such as natural gas and electricity. The full text of the Keystone Connection is available on the NEM Website.

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