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September 25, 2009
Winter Executive Committee Meeting

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.

Technical Conferences on National Action Plan on Demand Response

FERC Staff will convene two technical conferences related to the development of the National Action Plan on Demand Response. The first conference will be held October 22, 2009, at FERC's D.C. headquarters. The second conference will be held October 27, 2009, in Portland.

FERC was charged with developing a National Action Plan on Demand Response through the Energy Independence and Security Act of 2007 (EISA). The technical conferences are intended to gather input on the possible elements of the National Action Plan as discussed in a forthcoming Discussion Draft on Possible Elements of a National Action Plan on Demand Response to be released prior to the technical conferences. The full text of the Notice of Technical Conferences is available on the NEM Website.

New York
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Order on Marketer Contest Period

The Commission approved a petition requesting that it establish a marketer contest period in the Uniform Business Practices. Specifically, the contest period would permit an incumbent marketer (with customer authorization) to cancel a pending enrollment with a subsequent marketer. The contest period will be effectuated through EDI transaction standards. Revised EDI transaction standards will be issued by Staff for comment. The Commission noted its concern that the contest period could lead to increased allegations of slamming and cautioned that if an incumbent marketer cancels a pending enrollment without customer authorization to do so it will be considered a slam. The full text of the Order is available on the NEM Website.

Order on Expansion of O&R Referral Program

The Commission issued an Order approving the expansion of O&R's referral program to include new service customers. For electric customers receiving service in this fashion, the enrollment would be effective at the date of service initiation. For gas customers, it would be effective on the first day of the next month or the first day of the following month depending on processing. New service customers will only be enrolled in the referral program through O&R's call center. Program implementation costs are estimated at $46,100 and on-going maintenance costs are estimated at $4,100. The Commission decided that costs of program expansion should be recovered from marketers on an equal basis. However, O&R and participating marketers were directed to consider possible modifications to the cost recovery mechanism and report back to the Commission that may then modify the Order. The full text of the Order is available on the NEM Website.

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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 subsequently filed a tariff supplement to implement the POR program and MFC. The proposed discount rate for residentials is 1.37% (1.32% uncollectibles and 0.05% administration factor). The proposed discount rate for small C&Is is 0.17% (0.12% uncollectibles and 0.05% administration factor).

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 texts of the PPL Compliance Filing and Tariff Filing are available from NEM headquarters.

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