The California Governor has proposed to consolidate four energy agencies and create a Department of Energy. The Energy Commission would be consolidated with the Power Authority, the Electricity Oversight Board, and Water Resources. Siting authority over power lines and gas facilities would be shifted from the Public Utilities Commission to the new Department.

The Commission issued a report for the Governor and state legislature entitled, "Broadband Deployment in California." The Report recommends that the state should "encourage deployment of BPL [Broadband over Power Lines] by its electric utilities by providing regulatory certainty in the areas of affiliate transaction rules, in the treatment of BPL program expenses and revenues, and exemption from Section 851 requirements for the use of utility assets." The Commission notes it will initiate a rulemaking to develop a BPL policy framework. The full text of the Report is available on the NEM Website.

The Commission will consider Allegheny Power's request to change its tariff to reflect the wholesale supply contracts awarded. Based on the weighted average of all awarded supply prices, new standard offer service rates are proposed, to be effective June 1.

The Commission will consider the proposed Renewable Portfolio Standards regulations for adoption. The Commission Staff has been working with a Renewable Portfolio Standards Working Group.

The regulations establish the framework for implementing the renewable energy porfolio standard program, which begins in 2006 and is mandatory for all suppliers and utilities. The program will be implemented between 2006 and 2018 with a 1-6% requirement for Tier I resournces and a 2.5% Tier 2 requirement. After 2018, the requirment is 7.5% for Tier I resources. Suppliers must pay a compliance fee for any shortfall. The regulations address the voluntary market for renewable energy credits, as well as the renewable energy portfolio compliance market required under the Renewable Portfolio Standard law.

The Board issued an Order on the 2006 BGS auction process setting forth a preliminary schedule that would permit a decision on a final auction process in October 2005 and an auction and award of supply contracts in Feburary 2006. The Board directed the utilites and other interested parties to file proposals for modifications to the current BGS auction process by July 1, 2005. The Board also requested comment on the implications of providing a transitional rate design to larger C&I fixed price customers that would expose such customers, "to the hourly variations in energy costs without the uncertainties and volatility of hourly pricing." The full text of the BGS Order is available on the NEM Website.

Atlantic City Electric announced that it will re-auction its 555 MW generation assets in a competitive bidding process. Atlantic City's generation assets have been for sale for approximately 5 years and there have been 2 auctions. The bidding process will begin in mid-May 2005.

The Commission approved Central Hudson's retail access plan. The Central Hudson plan is modeled after O&R's successful PowerSwitch program offering two months of discounted service, which has resulted in significant levels of residential customer migration. The Commission's approval of this element of the plan is important because of the increased scrutiny given to the O&R plan in recent months.

Central Hudson's plan also included: 1) purchase of accounts receivable at a discount without recourse; 2) hourly pricing for SC3 and SC13 customers; 3) website enhancements to include more information about choice; 4) a migration incentive; and 5) customer education. The full text of the Order Approving Central Hudson's Retail Access Plan will be posted on the NEM Website when made available electronically.

NYSEG and RG&E have filed their retail access plans maintaining that their current programs are "comprehensive retail access programs." NYSEG proposes to continue its Voice Your Choice program, "with new two-year commodity-offering programs beginning January 1, 2007." NYSEG also proposes to implement a purchase of receivables program for energy marketers. NYSEG requests approval of the plan by September 30, 2005.

RG&E's current Voice Your Choice program was approved by the Commission in 2004 and continues through December 31, 2008. RG&E implemented a purchase of receivable program effective January 1, 2005.

The full texts of NYSEG and RG&E's Retail Access Plans are available from NEM headquarters.