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September 18, 2009
NEM Fall Leadership Roundtable and Winter Executive Committee Meeting

NEM’s Fall Leadership Roundtable Meeting was held this week in Albany, NY. Many thanks to Matt Picardi of Shell Energy North America for hosting this meeting. Thanks also to all of the members and prospective members that attended this outstanding event. We were honored to have been joined in the discussions by:

NYS Assistant Secretary of Energy, Kimberly Harriman;
New York State Senator Aubertine and his Chief of Staff, Lee Willbanks;
New York State Senator Betty Little;
New York State Assemblyman William Barclay;
Chairman, NYPSC, Garry Brown;
NY State Dept. of Public Service, LuAnn Scherer;
NY State Dept. of Public Service, Fran Hart;
NY State Dept. of Public Service, Marty Insogna; and
NYISO - Robert Pike

January 2010 Executive Committee Meeting - NEM’s 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. NEM’s 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 NEM’s 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.

Proposed Demand Response Measurement & Verification Rulemaking

FERC has proposed to adopt as Commission rules certain business practice standards adopted by NAESB pertaining to the categorization of various demand response products and services and the related measurement and verification of these products in wholesale electric energy markets. In summary, “[t]he NAESB Phase I M&V Standards include 40 definitions and 31 business practice standards. The definitions identify basic product categories, i.e., energy service, capacity service, reserve service and regulation service. They identify the measurement and verification characteristics of demand response products and services offered in organized wholesale electricity markets, such as reduction deadlines, advance notification instructions, telemetry accuracy, and communication protocols. The business practice standards address the major operational categories associated with demand response.” Comments on the proposal are due thirty days after publication in the Federal Register. The full text of the NOPR is available on the NEM Website.

New York
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NYSEG/RGE Rate Cases Filed

NYSEG and RGE filed gas and electric rate cases requesting delivery rate increases of approximately $383.4 million. RGE proposes a reliability surcharge calculation similar to NYSEG and to release capacity to marketers for their non-daily aggregation pools up to a 66 Heating Degree Days ("HDD") and RGE will hold and provide the supply for the remaining load up to 75 HDD. NYSEG and RGE also propose to upgrade SmarTRAC, their web-based Electronic Bulletin Board used to allow marketers to nominate natural gas. NYSEG proposes to add a provision to its GTOP to make a marketer responsible for paying its pro-rata share of any upstream pipeline costs incurred by NYSEG as a result of an imbalance in the marketer's metered daily cashout calculations exceeding either a positive or negative 10%. NYSEG proposes to change the frequency of the reconciliation of the estimated total usage calculations to actual meter reads for the non-daily metered customers (monthly reconciliation). The utilities’ propose that the Commission convene a procedural conference on October 7th to permit them to provide an overview of the filings and to field questions. The full text of the NYSEG/RGE Rate Case Filings are available from NEM headquarters.

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PPL POR Compliance Filing

PPL made a compliance filing with the Commission requesting approval of a voluntary POR program and also a Merchant Function Charge through which it would unbundle generation-related uncollectibles expense from base rates. PPL notes its intention to file a tariff supplement to implement the POR program and MFC, including the POR discount percentage and MFC percentage, by September 17, 2009. The proposed programs would cover the one year period commencing January 1, 2010. In a departure from the recent Commission order, PPL proposes to require marketers participating in the POR program to sell all of their receivables to PPL. In the alternative, PPL argues that a separate discount rate should be established for marketers that do not sell all of their receivables to the utility. The full text of the PPL Compliance Filing is available from NEM headquarters.

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