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September 20, 2013
NEM Fall Policy Leadership Roundtable

Please plan to attend NEM’s Fall Policy Leadership Roundtable to be held in Harrisburg, Pennsylvania on October 28-30, 2013. PA PUC Chairman Powell, Vice Chairman Coleman, Commissioner Cawley and Commissioner Witmer are confirmed to participate as well as PA State Representative Jeff Pyle. Governor Corbett and other top State Officials and Stakeholders have also been invited. Registration is now available on the NEM website, and a special NEM rate of $139.00 per night is available at the Hilton Harrisburg (717-237-6408). The Draft Agenda is available at this hotlink.

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NEM Comments on Draft Scope of 2014 Integrated Resources Plan

NEM filed comments on DEEP's proposed draft scope for the 2014 Integrated Resources Plan (IRP). As required by Section 16a-3a of the General Statutes of Connecticut, DEEP is required to develop an IRP for the procurement of energy resources utilizing commodity supply and demand side resources to, “to meet the projected requirements of their customers in a manner that minimizes the cost of such resources to customers over time and maximizes consumer benefits consistent with the state’s environmental goals and standards.” NEM recommended that the Department construct the 2014 IRP draft scope to provide the flexibility to accommodate the continuously expanding competitive electric retail market in Connecticut, including possible future modifications to the existing utility standard service offer to transition to competitive market mechanisms that rely on private capital and resources to leverage the maximum benefits and maximum protections to consumers. Given the Department and the Legislature’s recent consideration of structural changes to the utility standard service offer, and continued stakeholder support for such changes, NEM argued that the prudent course for the 2014 IRP draft scope is to recognize the changing role of the utility in the competitive marketplace and the diminished need for utility commodity procurement to serve captive customers. A significant amount of consumers are already shopping for competitive electricity products in the marketplace already. Competitive suppliers will continue to compete to serve these consumers under the standard service construct that is already in place, resulting in a reduced utility merchant role. However, in addition thereto, a competitive procurement mechanism may also be adopted that significantly increases consumer shopping in an accelerated timeframe. The full text of NEM's Comments is available on the NEM Website.

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Pepco POR Implementation Plan

Pepco held a conference call for interested suppliers regarding its proposed plan for the upcoming implementation of POR. Pepco has computed the POR discount rate for the different rate classes as follows:

Residential (Sched. R, AE, R-TM) - 1.373%
Residential (Sched. RAD, RAD-AE) - 1.7598%
Small Commercial (Sched. GS-LV ND, T, SL, TS, TN) -1.3296%
Large Commercial (Scheds. GS-LV, GS 3A, GT LV, GT 3A, GT, 3B, RT - 0.2083%
Market Priced (Scheds. GSLV-ND, GS-LV, GS 3A, GT LV, GT 3A, T, SL, TS) - 0.0130%

Pepco computed the discount rate as a function of uncollectible expense, late payment revenue (set to zero) and program development costs. Pepco is planning for an October 7, 2013, implementation date. Non-current balances as of the POR program effective date will be billed by Pepco for 90 days, after which the non-current balances will be returned to suppliers for collection. Pepco will be making a compliance filing with the Commission regarding its proposed implementation plan. The full text of the Pepco POR Implementation Plan is available on the NEM Website.

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MIPSC and Michigan Energy Office Release Draft Renewable Energy Report

Following on Governor Snyder's Special Message on Energy and the Environment that was issued last year which charged the Commission and Michigan Energy Office with undertaking an information gathering process to formulate state energy policy, the first of four draft reports have been issued. This first report pertains to renewable energy. Subsequent reports will pertain to energy efficiency, electric choice and additional areas. The renewable energy draft report notes Michigan's current 10% by 2015 RPS requirement and evaluates the factors involved with increasing the RPS, ranging from 15% by 2020 to 30% by 2035. Factors associated with increasing the RPS include cost of renewable resources, gird reliability, and the technical feasibility of implementing an increase. Comments are due by October 16, 2013. The full text of the Draft Report is available on the NEM Website.

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