As required by statute, the Illinois Power Agency (IPA) filed an electric procurement plan to meet the needs of eligible Ameren and ComEd customers for the period June 2009 through May 2014. Eligibile customers include residential and other customers that are entitled to purchase electricity from the utilities under fixed price bundled service tariffs. IPA proposed to utilize a laddered procurement approach. Specifically, "IPA proposes to employ a portfolio distribution schedule that allows between 20% and 40% of projected loads to be procured in each of the three years prior to the delivery month." IPA also proposes to link a portion of laddered purchases to market price triggers, so that it can alter the quantity of electricity purchased under changing market conditions. IPA notes that there are utility legacy contracts in place that will necessarily limit how much power IPA initially needs to procure.

In order to facilitate IPA's review of comments on its plan, the Commission will accept comments for IPA review and possible incorporation in its final Plan. Those comments should be submitted by October 6, 2008.

The full text of IPA's Procurement Plan is available on the NEM Website.

This week the Commission approved Iberdrola's acquisition of Energy East and its affiliates, NYSEG and RG&E. A contentious issue in the case was Iberdrola's ownership of wind generation and the attendant potential to exercise vertical power as an owner of transmission and distribution assets. The Commission imposed conditions to mitigate the risk that Iberdrola could exercise vertical market power and to provide NYSEG and RG&E customers with $275 million in benefits to be used to reduce rates or moderate rate increase requests. Iberdrola must commit to spending $200 million on wind energy development in the State. The Commission also accepted Iberdrola's offer to divest fossil fuel generating plants. However, it would continue to operate the hydroelectric plants. If its accepts the Commission's conditions, Iberdrola must file a written acceptance of the Order. The full text of the Order Approving the Acquisition will be posted on the NEM Website when made available electronically.

Central Hudson filed electric and gas delivery rate cases with the Commission. A prehearing conference will be convened on September 17, 2008, at 10AM in the 3rd floor hearing room in the Commission's Albany Offices. The purpose of the prehearing conference is to define major issues, set a procedural schedule, set discovery practice and address other procedural matters.

With respect to its retail choice program, CenHud proposes to continue funding at current levels for the 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

PPL filed a proposed electric default service and procurement plan to cover the term of January 1, 2011, through May 31, 2014. For residential and small commercial customers, default service supply will be procured, "through a series of quarterly solicitations beginning in July 2009 and continuing through April 2014. The remaining ten percent (10%) of the required POLR supply, incuding associated AECs [Alternative Energy Credits], will be obtained on the PJM spot market through a series of annual contracts with third-party suppliers." These customers generation supply charge will be adjusted quarterly and subject to quarterly reconciliations with interest. For large C&I customers, supply is proposed to be procured on a real-time hourly basis through the PJM spot market. PPL proposes to do this by issuing an annual solicitation for competitive offers to provide default service spot market supply. The procurements will be administered by an independent third party.

In view of Commission Staff plans to convene a Retail Markets Working Group to address choice issues, PPL declined to propose a customer referral program, revisions to its supplier tariff or further expansion of its POR program. PPL did discuss its plan to hire a retail choice ombudsman, "who can be contacted by customers about retail choice programs."

The full text of PPL's Filing is available on the NEM Website.