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June 1, 2007
Goeken Group Corporation Elected to NEM Executive Committee

NEM is pleased to announce that the Goeken Group Corporation has been elected to the Executive Committee. The Goeken Group Corporation will be represented within NEM by John "Jack" Goeken, Chairman, Goeken Group Corp. (founder of MCI), Sandra Goeken-Miles, President, Goeken Group Corp., and Carl Scianna, President, PolyBrite International Inc. (wholly-owned subsidiary of Goeken Group Corp.) and Randy Miles, Executive Vice President.

The Goeken Group Corporation under the leadership of Chairman and CEO John D. "Jack" Goeken epitomizes the benefits of opening historically monopolized markets to competition. Jack Goeken constructed Microwave Communications technologies (Microwave Communications Inc. was MCI) that by-passed AT&T historical monopoly lowering the data transmission error rates from 1 in 10,000 to 1 in 10 million, and in the process built the infrastructure which has evolved into what we now call the Internet.

By opening telecommunications to competition, long distance rates have declined from $4.50/minute to its current cost of pennies per minute. In the process, both Jack and Sandra Goeken pioneered technologies which enabled wireless communications from airplanes and ultimately pioneered what today we take for granted as cell phones. Other technologies created as a result of these momentous breakthroughs include geostationary satellite technology.

With the addition of inventor/visionary Carl Scianna, PolyBrite International has patented the second generation of digital LED lighting using PolyBrites'
unique “nano-polymer” technology. All of the PolyBrite products can produce a full spectrum of light at any temperature or color while saving up to 90% in energy costs. These bulbs look and feel like normal light bulbs you screw into existing sockets. The PolyBrite light bulb is 100% green and completely free of contaminants such as mercury, plus it is virtually unbreakable further reducing costs, maintenance expenses and breakage.

Policy Implications: Studies estimate that replacing light bulbs with this technology could save greater than $50 billion a year in energy costs, or the equivalent of 255 power plants, which could reduce carbon emissions by 273 million tons annually. Analysis using DOE statistics of 110 million households in America using an average of 11,256 kWh per year at only a 10% replacement rate ( each household has an average of thirty 60 watt lamps and only replaces three of them with LED SSL bulbs, using a conservative 80% reduction in power usage), this would save our country $2.3 billion dollars/year and 23 billion in kilowatt hours saved. This is the equivalent of supplying power to 2 million households for an entire year. The impact to the atmosphere is an annual reduction of 33 million tons of carbon dioxide and 100% reduction in related mercury poisioning. PolyBrites’ technology is rated to last 50,000 hours, which is 34 years at 4 hours a day (a compact fluorescent bulb which contains toxic levels of mercury lasts 10,000 hours).

Please join us in welcoming the Goeken Group Corporation to NEM.

Jack Goeken, Sandra Goeken Miles, Carl Scianna and Randy Miles can all be reached at 1 (800) 320-3801.

NEM Summer Executive Committee and Policy Development Meeting

Save the Dates: NEM's Summer Executive Committee and Policy Development Meeting will be hosted by The Goeken Group Corp, and PolyBrite International at thier headquarters near Chicago, Illinois, on July 9th and 10th, 2007. An agenda with Hotel information will be sent shortly.

NEM Policy Chairs who may wish to be invited to participate in the high-level policy discussions at the Aspen Institute after NEM's meeting should contact headquarters immediately as invitations are very limited.

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Commission Institutes Rulemaking on Restoration of Direct Access

The Commission issued an Order determining that a rulemaking should be initiated to consider whether, or subject to what conditions, the suspension on direct access (DA) should be lifted. The case will proceed in three phases. Phase 1 will focus on the Commission's legal authority to lift the DA suspension. Phase 1 will also examine the extent to which Department of Water Resources contract assignment or novation would be needed to satisfy statutory conditions for lifting DA suspension. Phase 2 will consider whether, and under what market and regulatory conditions, the lifting of DA suspension would be in the public interest. Phase 3 will examine retail rules to govern a reconstituted DA market.

Initial comments on procedural issues (the need for a hearing as well as the scope, phases and timetable of proceeding) are due June 25, 2007, and reply comments are due July 10, 2007. Initial comments on the substantive issues of Phase 1 are due July 23, 2007. The full text of the Order is available on the NEM Website.

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Utilities and Generators Propose Consumer Assistance Fund

ComEd is reporting a statewide three year $500 million rate relief and consumer assistance proposal. ComEd and Ameren would each contribute $100 million and Exelon Generation and other generators would contribute $300 million. The proposal is contingent on the state legislature not passing rate freeze, generation tax or other adverse legislation. ComEd's proposal would entail provision of summer bill credits to all residential consumers as well as rate relief and assistance for customers most in need. ComEd intends to file the proposal with the Illinois Commerce Commission.

New York
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ConEd Electric Rate Case

ConEd filed a three year electric rate plan with the Commission. The ALJs in the case will conduct a procedural conference on June 18, 2007, at 11AM in the Commission's Albany offices. The purpose of the procedural conference is to discuss the schedule and other procedural issues of the case and to provide ConEd an opportunity to give an explanatory overview of its filing. Additionally, ConEd will be presenting an overview of its filing on June 6, 2007, at 10AM in the Commission's Manhattan offices (those wishing to attend should contact by June 1, 2007).

In its filing, ConEd proposes to continue its PowerMove program and Market Match program. It also proposes to continue its Purchase of Receivable program with a modification to purchase the sales tax at the same discounted rate as the purchase of the ESCO charges receivable.

The proposed Merchant Function Charge for full service customers is as follows: SC1 Rates I and II and SC7 Rates I and II 0.628 cents per kwh, SC2 Rates I and II 0.505 cents per kwh, and all other classes 0.206 cents per kwh. The proposed Merchant Function Charge for retail access customers receiving consolidated bills from ConEd is as follows: SC1 Rates I and II and SC7 Rates I and II 0.279 cents per kwh, SC2 Rates I and II 0.241 cents per kwh, and all other classes 0.056 cents per kwh.

ConEd proposes to move certain cost elements from the MAC to the MSC (that are incurred on or after May 1, 2008) including costs/benefits of financial hedging, NYISO commodity rebills for prior months costs, total costs associated with energy and capacity contracts, the monthly amortized cost of and revenues from TCCs held on behalf of full service customers. The billing credit is proposed to be $0.94 per bill.

ConEd proposed to deploy an advanced metering infrstructure throughout its service territory over a seven year period commencing in 2007. ConEd proposed to expand the Mandatory Hourly Pricing (MHP) Program to all customers whose maximum demand is greater than 500 kW in any month. However, ESCOs serving customers in this group "will be assigned each customer's hourly load and will have the obligation to purchase electricity from the wholesale market that matches that hourly load pattern." MHP will be phased in for these customers beginning with 2009 billings. ConEd also proposed to stop applying financial hedges for these customers.

ConEd proposed new demand side management programs intended to achieve at least 500 megawatts of permanent demand reduction by 2016. It also proposed a revenue decoupling mechanism to remove a financial disincentive against promotion of energy efficiency. The full text of ConEd's Electric Rate Filing is available from NEM headquarters.

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Consumer Education Campaign

The Commission issued an Order adopting a consumer education plan to prepare consumers for potential electric price increases. The Order provides that all electric utilities should file a consumer education plan for Commission approval by December 31, 2007.

A statewide education campaign will also be developed by the Office of Communications with assistance from Staff and stakeholders. An initial meeting of stakeholders will be convened on June 19, 2007, at 10AM in Hearing Room 1 of the Commonwealth Keystone Building. The meeting is intended to lay the groundwork for subsequent meetings, receive initial feedback from participants and to begin drafting an implementation plan for the statewide campaign.

The full text of the Order is available from the NEM Website.

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Legislative Session Ends Without Passage of Electric Market Bills

SB482 and SB483, which would have significantly changed the wholesale and retail electric market in the State, both died in the legislature as it concluded its session.

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