The second year of the bidding process for market-priced, competitively bid Standard Offer Service for Pepco and Conectiv residential customers and for Pepco, Conectiv, Allegheny Power and BGE commercial and industrial customers has been completed. The new prices take effect on June 1.

The Commission reported that 20 wholesale supppliers offered 8 times in excess of the needed load. The Commission Chairman stated that the SOS procurement was very competitive and highly successful.

The Commission also has released a report on the status of electricity procurement and restructuring, which reports that over 40% of commercial and industrial load has switched to competitive retail suppliers.

The full texts of the SOS Procurement Results and the Report are available on the NEM Website.

The Commission Staff has drafted a Ring-Fencing Report on electric and gas utilities. The report includes analysis of the various ring-fencing policies as well as Maryland's policies. Among other recommendations, the Staff proposed an annual ring-fencing report and a reporting system.

A stakeholder process is expected to be announced and the Commission is expected to request comments on Staff's recommendations. The full text of the Report is available on the NEM Website.

Detroit Edison has filed its 2004 stranded costs case. As part of the case, Detroit Edison has requested permission to continue charging a net stranded costs transition charge of 3 mills/kWh for Electricity Choice secondary customers and 1 mill/kWh for Electricity Choice primary customers. Detroit Edison has reported $99 million in additional net stranded costs for 2004.

The proceeding also includes Detroit Edison's reconciliation of power supply costs for 2004.

The full text of Detroit Edison's Application and Testimony is available on the NEM Website.

The Commission approved the amended consensus agreement implementing a voluntary, statewide 5-year net metering program. Utility tariffs are due by April 28. Participating utilities include Alpena Power, Indiana Michigan Power, Edison Sault Electric, Upper Peninsula Power, Wisconsin PSC, Wisconsin Electric, Northern States Power, Consumers Energy, and Detroit Edison.

The program applies to renewable energy sources such as solar, wind, geothermal, and biomass. Net-metered customers will be credited for net excess generation at the utility's retail price of generation.

The full text of the Order Approving the Net Metering Program is available on the NEM Website.

NYSEG and RG&E filed a request with the Commission to investigate the establishment of market monitoring measures and affiliate rules "to prevent potential gaming of the energy markets by companies which both own generation and sell electricity into New York retail markets." The utilities warn of a regulatory gap between FERC and the NYISO and the New York retail markets. While not asserting that any ESCOs have engaged in inappropriate behavior, the utilities suggest that a generator could sell its capacity to its ESCO affiliate below market price to enable the affiliate to gain greater market share.

The utilities suggest that the following market monitoring measures be considered: 1) affiliate rules or codes of conduct governing the relationship between retail companies and generator affiliates; 2) coordination with NYISO to identify wholesale market behaviors that impact the retail market; 3) use of market screens to identify affiliate transactions with the potential for market manipulation or predatory pricing; 4) identification of pricing trend information; and 5) establishment of a market abuse reporting hotline.

The full text of NYSEG/RG&E's Filing is available from NEM headquarters.

The Pennsylvania Supreme Court held that the Pennsylvania Commission may not assess suppliers for the Commission's, the Consumer Advocate's or the Small Business Advocate's administrative expenses. Currently, the Commission assesses public utilities for such expenses. The Court held that suppliers may not be treated as public utilities for such assessment purposes. The full text of the Order is available on the NEM Website.

Columbia Gas' fixed price proposal has been suspended until November 3. Currently, the Judge is considering the party status of a natural gas supplier and of NEM. In addition, settlement negotiations are ongoing.

The Pennsylvania interconnection standards and net metering working group continues to meet, with the next meeting scheduled for April 19. Comments on interconnection issues are due by April 14.

A working group meeting also is scheduled on April 19 on demand side management and energy efficiency issues. A sub group is meeting to develop a report on a depreciation schedule and verification and tracking standards as part of the implementation of the Alternative Energy Portfolio Standards Act. Staff is expected to circulate a strawman report in May for comments, with the Commission to approve a schedule and standards by June 23.

SB 1748 has been introduced on the provision of Broadband over Power Lines (BPL) by electric utilities. The legislation permits a utility on its own, through an affiliate or through an unaffiliated entity to operate a BPL system on the utility's electric delivery system. The legislation includes revenue recovery measures, or alternatively, rate-setting treatment, to incent deployment of BPL systems. The legislation prohibits cross-subsidization of BPL services with utility revenues. It also prohibits a utility from charging an affiliate less or paying an affiliate more when an affiliate renders service as a BPL operator. The full text of SB 1748 is available on the NEM Website.