State law requires the newly formed Illinois Power Agency (IPA) to file power procurement plans for electric utilities by August 15th. The plans are meant to, "ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time, taking in account any benefits of price stability." IPA has petitioned the Commission for extension of time to file the plans to September 3, 2008. The full text of IPA's Petition is available on the NEM Website.

Central Hudson filed a new electric and gas delivery rate case with the Commission, with an expected effective date of July 1, 2009. With respect to its retail choice program, CenHud notes "significant growth" in both electric and gas migration since December 2006 as well as an increase in marketers competing to serve customers. CenHud proposes to continue funding at current levels for the low cost Market Expo, Energy Fairs and Competition Awareness Survey, but given low levels of previous participation, to determine interest before actually conducting the programs. CenHud maintains that the ESCO Ombudsman and ESCO Satisfaction Survey should be discontinued. It supports ongoing informational retail access awareness advertising and enhancement of services to be funded by the Competition Education Campaign.

CenHud proposes to update its rate structure, including changes to its electric and gas Merchant Function Charge (MFC) Administration Charge and MFC Supply Charge to reflect cost elements avoided by the company when customers migrate. (Proposed changes to the electric MFC Administration Charge and MFC Supply Charge can be viewed at this hotlink, and proposed changes to the gas MFC Administration Charge and MFC Supply Charge can viewed at this hotlink.).

CenHud proposes to revise the discount rate for its POR program to reflect the currently approved customer deposit rate in effect at the time of the annual update. CenHud proposes to update its consolidated billing service credit for gas customers such that the rate for SC12 customers will be $0.49 and $0.98 for all other service classes. The consolidated billing service credit for electric customers would be updated as $0.71 for SC1 customers and $1.42 for all other service classes.

The full text of CenHud's Rate Filing can be viewed at: http://www.cenhud.com/rate%20proposal%202008/testimony_exhibits.html

A technical conference was convened this week for the purpose of providing a forum for ConEd to explain its report on the potential expansion of its ESCO referral program to include customers seeking new service. With respect to expansion of the referral program, the Commission was concerned with issues of utility HEFPA compliance (providing timely service to applicants), potential impediments to timely provision of service, and ConEd cost recovery, amongst other issues. Requests to be added to the service list are due August 8th, initial comments are due August 22nd and reply comments are due September 5th. NEM's Summary of the Technical Conference is available on the NEM Website.

ConEd also filed a semi-annual report on its electric retail access program discussing its promotional activities and expenditures, competition outreach and education and electric migration data for the period January 1 through March 31, 2008. ConEd reported that as of March 31, 2008, that 668,122 electric accounts migrated to marketer supply service since April 1, 2005. During each of the months of January, February and March 2008 approximately 18,500 electric accounts migrated. The full text of ConEd's Electric Retail Access Report is available on the NEM Website.

Pursuant to SB221, the electric utilities have submitted standard service offer (SSO) filings. The utilities were required at a minimum to include an electric security plan (ESP), but could also file a market rate offer (MRO). AEP and Duke Energy filed ESPs and FirstEnergy filed both an ESP and MRO. The utilities filings contemplate a three-year plan term.

FirstEnergy's MRO would use a competitive bidding process with multiple, staggered solicitations to achieve a "blended" generation price for SSO customers that smoothes price volatility. A quarterly reconiliation adjustment would be used to adjust retail prices for differences in SSO Supply Costs and SSO Generation Service revenues.

AEP has proposed an ESP that would limit the annual increase in customers total bills to approximately 15 percent. AEP will phase-in ESP rates by deferring a portion of proposed annual incremental Fuel Adjustment Clause costs in 2009, 2010 and 2011. Those costs would be recovered, plus carrying charges, over a seven year period, through a nonbypassable surcharge. A non-bypassable Provider of Last Resort Charge will be assessed to customers.

Duke Energy's ESP details a new rate structure comprised of an avoidable Price to Compare charge, unavoidable System Resource Adequacy Charge, avoidable Transmission Cost Recovery tracker, and unavoidable distribution riders. Duke Energy proposed an initial increase in rates of 6.2% to be effective January 1, 2009.

The Commission issued the summer edition of its Keystone Connection report. The report introduces new Commissioners Robert Powelson and Wayne Gardner. Legislative activity and special sessions on electric issues are detailed. The report notes new gas base rate filings by Equitable Gas, Columbia Gas, and PECO Energy. It also discusses the issuance of a report in the gas stakeholder SEARCH process and the Commission's expectation that it will, "take action later this summer on staff recommendations arising from the stakeholder process. This action is likely to be in the form of a tentative order or proposed policy statement seeking comments from interested parties." The full text of the Keystone Connection is available on the NEM Website.