Assembly Member Richman introduced AB 1704 on a core/non-core electric market structure. The bill requires the PUC to transition to such a structure. Core customers are defined as those with maximum aggregate peak demand of less than 200 kilowatts. The utilities would have a duty to provide core and core-elect customers with electricity, transmission and distribution service, and auxiliary services. The utilities would have a duty to provide transmission and distribution service on a non-discriminatory basis to non-core, aggregated non-core, grandfathered direct access and green choice customers. The full text of AB 1704 is available on the NEM Website.

A prehearing conference is scheduled on April 8 in the ComEd wholesale supply reverse auction proceeding. The proposed tariff sheets were suspended until July 24, with Commission action required by January 24, 2006.

ComEd has proposed that, beginning in 2007, 100% of its load be set for bid at the first auction, with staggered 1, 3 and 5 year contracts. ComEd proposes to use its existing methodology to determine the market value of electricty by using the prices of the standard form auction contracts. Suppliers will enter into forward contracts to supply electricity in ComEd's load zone at fixed prices. There will be two auctions -- the retail aggregate load - blended and the retail aggregate load - hourly. Implemented through a phase-in process, ComEd wil procure its full requirements for the retail aggregate load -blended through 9 auction products, including 5 staggered products, each for 5 years and for 5% of the load; 3 staggered products for 3 years for 20% of the load; and 1 product for 1 year for 15% of the load. In addition, there will be one auction for the hourly load for one year.

ComEd has proposed 4 new tariff riders - Rider CPP (competitive procurement process); Rider PPO-MV (power purchase option - market value methodology); Rider TS-CPP (transmission service - competitive procurement process); and a revised Rider PPO-MI (power purchase option - market index).

The Ameren Companies (CIPS, CILCO and Illinois Power) have proposed a competitive procurement reverse auction process in order to provide BGS service, effective as of January 2007. Each Ameren Company also has proposed a Rider MV to determine the market value of electricity based on the auction for standard products and contracts. Suppliers would sign tranche-specific foward contracts at fixed prices. Ameren proposes to bid out 2 fixed price products (BGS-FP and BGS-LFP) and one variable hourly priced product (BGS-LRTP). The terms for the BGS-FP bids would be for 17 months, 29 months and 41 months, while the the term for BGS-LFP and the hourly product would be for 17 months.

The Ameren Companies also have filed a request for waiver of the standard information requirements for their proposed new electric service schedules.

The proposed tariffs have been suspended until July 27, 2005, with prehearing conferences scheduled for each Ameren company on April 8.

The Commission approved the statewide green power choice program, which allows customers to select a green energy option from a variety of green power products and marketers while not having to switch suppliers. The program is described as a joint effort between multiple utilities and green power marketers and will go into effect in 2005 after the utilities modify their billing and information systems.

Under the guise of filing comments on O&R's retail access implementation plan, NYSEG and RG&E have attacked fundamental competitive market principles. The utilities' comments are a procedurally inappropriate challenge to the Commission's Retail Policy Statement. Their comments are also an attempt to excuse their own failure to comply with the Policy Statement and file a retail access implementation plan. NYSEG and RG&E question whether the prices charged to customers under the O&R PowerSwitch program are just and reasonable and dispute whether the migration levels achieved justify the program as good public policy. NEM is drafting a response to the utilities' comments. The full text of NYSEG and RG&E's Comments are available on the NEM Website.

The Commission denied the Consumer Counsel's rehearing request regarding the settlement among Dayton Power and Light, Green Mountain, Dominion Retail, Industrial Energy Users, Commission Staff and others regarding DPL's billing related to aggregators and suppliers. The settlement addressed charges to suppliers for billing, consolidated billing system modification costs, and supplier default expenses. The full text of the Order is available on the NEM Website.