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September 21, 2012
NEM Fall Leadership Roundtable

NEM’s Fall Leadership Roundtable will be held October 15-17, 2012, at the Kellogg Hotel and Conference Center in Lansing, Michigan. NEM will host the Michigan Public Service Commission and its Staff. The Governor has been invited along with State Legislators and Auto Industry Officials. You may register at this hotlink. The current draft of the agenda is available at this hotlink.

When making your reservations at the Kellogg Center please contact (517) 432-3086, please identify yourself as a NEM Member and provide them with our Group Code EMA101512 to receive the preferred rate of $98.00 per night. The deadline to reserve a room is September 15th.

Sponsorship opportunities are available. Please contact NEM headquarters if you are interested in sponsorship.

CFTC Proposed Order on ISO/RTO Exemption Request

The CFTC issued a Proposed Order in response to a Petition filed by ISOs/RTOS requesting an exemption for certain transactions from the provisions of the Commodity Exchange Act and Commission regulations. Under the Proposed Order, "the Commission proposes to exempt certain Financial Transmission Rights (‘‘FTRs’’), Energy Transactions, Forward Capacity Transactions, and Reserve or Regulation Transactions (collectively, the ‘‘Transactions’’), each as defined below, pursuant to section 4(c)(6) of the Act.
. . .
The Proposed Exemption would be subject to certain conditions. First, all parties to the agreements, contracts or transactions that are covered by the Proposed Exemption must be either ‘‘appropriate persons,’’ as such term is defined in sections 4(c)(3)(A) through (J) of the Act, or ‘‘eligible contract participants,’’ as such term is defined in section 1a(18)(A) of the Act and in Commission regulation 1.3(m).
Second, the agreements, contracts or transactions that are covered by the Proposed Exemption must be offered or sold pursuant to a Petitioner’s tariff, which has been approved or permitted to take effect by:
(1) In the case of ERCOT, the PUCT or
(2) In the case of all other Petitioners, FERC.
Third, none of a Petitioner’s tariffs or other governing documents may include any requirement that the Petitioner notify a member prior to providing information to the Commission in response to a subpoena or other request for information or documentation.
Finally, information sharing arrangements that are satisfactory to the Commission between the Commission and FERC and between the Commission and PUCT must be in full force and effect." Comments on the Proposed Order are due September 27, 2012. The full text of the Proposed Order is available on the NEM Website.

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Commission Orders Establishment of Pepco POR Program

The Commission issued an Order establishing an electric POR program at Pepco, to become available within nine months. Pepco had proposed to implement a POR program largely modeled after its existing Maryland program with certain modifications. Pepco had also argued its implementation of POR should be timed to coincide with the implementation of its new billing system in 2014. The POR program discount rate will be calculated to include an uncollectible expense component; program development cost component; a risk component (to be set zero); late payment revenue component; and a reconciliation component. Separate discount rates will be utilized for residential and non-residential customers. The Commission rejected Pepco's proposal to implement an additional Supplier Charge to recover uncollected receivables if there is an insufficient number of participating suppliers to support cost recovery. The full text of the Order is available on the NEM Website.

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OCMO Meeting for EGSs Serving Residential Customers

A Secretarial Letter was issued announcing that the Commission's OCMO will convene a meeting on October 22, 2012 at 1PM in its Harrisburg offices to discuss regulatory requirements applicable to EGSs marketing to/serving residential customers; to discuss informal complaints received about EGSs; and to discuss supplier participation in the PAPowerSwitch site. The Secretarial Letter explicitly states that, "All electric generation suppliers (EGSs) marketing to or serving residential customers are expected to attend this meeting." RSVPs to attend should be sent to OCMO at by September 28, 2012. The full texts of the Secretarial Letter and Meeting Agenda are available on the NEM Website.

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