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August 14, 2009
Upcoming NEM Meeting Dates

Please mark your calendar and plan to join us for the following NEM meetings:

September 2009 Fall Leadership Roundtable - NEMís Fall Leadership Roundtable Meeting will be held on September 15 & 16, 2009, at the Hampton Inn & Suites, Albany Downtown, Albany, NY 12210. NEMís room rate has been secured at $129.00 per room per night. Many thanks to Matt Picardi of Shell Energy North America for the generous offer to host this meeting. Please register for the Fall Leadership Roundtable at this hotlink.

January 2010 Executive Committee Meeting - NEMís Annual Winter Executive Committee Policy and Planning Meeting will be held January 19 & 20, 2010, at the headquarters of South Carolina Research Authority in Charleston, South Carolina. NEMís room rate has been secured at $129.00 per room per night at the Hilton Garden Inn Charleston Airport, 5265 International Blvd., N. Charleston, SC 29418. The Executive Committee sets the course for NEMís advocacy in the coming year at this meeting. Many thanks to Bill Mahoney and South Carolina Research Authority for the generous offer to host this meeting.

April 2010 Annual Global Energy Forum Ė NEMís Annual Global Energy Forum, will be held April 27 & 28, 2010, at the Embassy Suites Convention Center, Washington DC, 900 10th Street, NW, Washington, DC 20001. NEMís room rate has been secured at $289.00 per room per night. Sponsorship opportunities are available.

KOREnergy, Ltd. Joins NEM

The National Energy Marketers Association (NEM) is pleased to announce that KOREnergy, Ltd. has joined the Association. NEM is also very pleased to welcome back Bob Korandovich, President of KOREnergy, Ltd. as a member of the Association. Bob has previously served on NEM's Executive Committee and has made many valuable contributions to the Association over the years. Additionally, KOREnergy represents an important new business model which aggregates demand response in the competitive retail energy marketplace.

Mr. Korandovich is President and owner of KOREnergy, Ltd., a privately held business providing demand response services to industrial and large commercial end-users in the Midwest and Appalachian Basin, as a Member of PJM Interconnection LLC. Mr. Korandovich brings knowledge acquired from over 20 years of retail energy experience, with a focus on industrial and commercial customers throughout North America and the United Kingdom.

Order on Rehearing on Capacity Release Requirements

The Commission denied rehearing of an Order accepting Texas Eastern's tariff to implement Order 712 on capacity release requirements. Parties had sought rehearing of Texas Eastern's tariff provision denying refunds to replacement shippers in capacity release transactions of a term of one year or less and thus not subject to the maximum rate cap. Parties argued that, in the context of state retail unbundling programs, refunds should be required to replacement shippers taking short term capacity releases. The Commission held that when a pipeline's proposed max rates are found to be too high through a pipeline section 4 case, that the short term replacement shipper is not entitled to refunds, only the releasing shipper. The Commission did however clarify that the appropriate distribution of refunds received by an LDC in a state unbundling program is within the purview of the state public service commission with jurisdiction over the program, that could require the LDC to pass through refunds to marketers and/or flow the refund directly to the retail customers served by the marketers. The full text of the Order is available on the NEM Website.

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NEM Comments in Opposition to CPV Motion

NEM submitted comments to the Commission urging it to reject a motion by CPV requesting that the Commission require one or more Maryland investor-owned utilities to enter into long-term contracts with CPV for all of the capacity and energy from a proposed CPV generating facility. In the alternative, CPV requested that the Commission itself negotiate a contract with CPV on behalf of an investor-owned utility. NEM noted its concern about the significant negative impact on retail choice of the long-term, twenty-year investor-owned utility contracting suggested by CPVís Motion. NEM argued that CPV is attempting to get through regulation what it was unable to accomplish competitively, thus shifting all the risks of its proposed generation project from investors to Marylandís consumers. The restructuring of the natural gas and electricity industries was initiated in large part because the historical cost-of-service approach to energy supply and demand facilitated a steady increase in the costs for energy to the ultimate consumer, even in times of declining natural gas wellhead prices. Past experience with the historical cost-of-service approach to energy supply facilitated a steady increase in consumersí energy rates because of generation construction cost overruns and inefficient operation of plants. It was recognized that regulated rates are a poor proxy for the efficiencies, innovations and potential price savings yielded by competitive markets. Competitive market participants are in the best position to control supply-related risks, and they do so without the requisite guaranteed return of and return on utility investments, all risks that CPV is proposing to be borne by captive ratepayers. The full text of NEM's Comments is available on the NEM Website.

New York
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Draft 2009 State Energy Plan

The State Energy Planning Board released a Draft 2009 State Energy Plan. The draft Plan is focused on achieving five policy objectives, including reliable energy and transportation systems; reduction of greenhouse gases; address energy affordability; reduction of health and environmental risks associated with energy production and usage; and improve state energy independence and fuel diversity.

Amongst the noteworthy recommendations of the draft Plan are:

"PSC should be authorized to require that electricity be priced on a time of use basis for all customers, upon a finding that it is in the public interest to do so. Issues that should be considered in making that determination include: the practical hardships and difficulties related to implementing time of use rates for residential customers, and possible means to mitigate any such hardships; and alternative rate regimes, based on voluntary participation of residential customers.

The State should broaden the installation of advanced meters and implementation of mandatory hourly pricing for industrial and commercial customers by continuing to reduce the demand thresholds. PSC and State energy authorities should evaluate and aggressively support
implementation of demand response measures where cost-effective and environmentally beneficial.

The State should continue to implement rate structures and metering requirements for nonresidential customers that encourage use of electricity at off-peak hours and/or encourage control of daily electric load."

Written comments on the draft Plan must be submitted by October 9, 2009. The full text of the Draft Energy Plan is available on the NEM Website.

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Order on Removing Barriers to Competition in PPL Electric Market

The Commission adopted measures intended to remove barriers to a competitive retail electric market in the PPL service territory, with the pending expiration of rate caps on December 31, 2009. "[T]he Commission felt it was important that [PPL's] market contain competitive alternatives, that its customers are aware of these competitive alternatives and that no barriers exist to prevent EGS entry into the market."

Measures addressed by the Commission include:

Customer information databases;
Data access through standardized EDI transactions for post validation, estimation and editing (VEE) data;
Bill ready and rate ready options;
Timely EDI testing;
Implementation of purchase of receivables by January 2010;
Customer awareness and education programs;
Commitments to a process for development of a uniform supplier tariff;
An ombudsman for supplier issues; and
PPL costs of competition related activities.

The Commission also decided that customer referral programs, provisions for billing services not covered by purchase of receivables programs, and customer shopping education efforts by EDCs and the Commission should be referred to the Retail Market Working Group for further consideration.

The Commission also noted that the measures adopted for PPL will serve as the starting point in proceedings regarding other utilities. The full text of the PPL Order is available on the NEM Website.

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