December 8, 2000


 Honeywell Elected to NEM Executive Committee

NEM is very pleased to announce that Honeywell has been elected to NEM's Executive Committee. Honeywell serves customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; and distributed power generation systems. The company is a leading provider of software and solutions, and Internet e-hubs including, and Tony Prophet, President and CEO of Honeywell Power Systems Inc., will represent Honeywell within NEM.

 Executive Committee Meeting Agenda

A draft agenda for the January 22 and 23, 2001, meeting of the Executive Committee is available. If you would like to add topics to the agenda, please contact headquarters ASAP. We are in the process of making hotel arrangements and will release the details as soon as possible. The full text of the Draft Agenda is available on the NEM Website.

 NEM Energy Marketers 2001 April Conference

A draft agenda for NEM's Energy Marketers 2001 Conference on April 3 and 4, 2001, is available. New speakers have been confirmed to participate. The full text of the Draft Agenda, the Energy Marketers 2001 Brochure, and the Magazine Ad for our sponsors are available on the NEM Website.

 NEM Draft Comments on EIA Gas Marketer Survey

NEM has prepared draft comments on EIA's revised Gas Marketer Survey. NEM argues that the imposition of the Proposed Survey is a rulemaking, in excess of EIA's statutory authority, that was not promulgated in conformance with administrative law, and will have significant impacts on the industry and the U.S. economy. NEM urges that if the Proposed Survey is adopted, it should only be imposed on natural gas marketers on a voluntary basis, or alternatively, only in jurisdictions where 25% customer migration has been achieved and then only like the home heating oil industry. The full text of NEM's Draft EIA Comments is available on the NEM Website.

 Multistate EDI Meeting

The Pennsylvania Public Utility Commission, Maryland Public Service Commission, New Jersey Board of Public Utilities, Virginia Corporation Commission, D.C. Commission, and the Delaware Public Service Commission have scheduled a meeting with interested electric generation suppliers and electric distribution companies on January 17, 2000, at 10AM, to explore a regional approach to future changes in EDI transactions. Parties interested in attending should contact NEM headquarters.


 ISO New England Congestion Management System/Multi-Settlement System (CMS/MSS) Plan

ISO New England has filed a revised implementation plan for CMS/MSS. Under Phase 1 of the revised plan, the ISO will implement CMS with a single-settlement system that will include locational pricing from a security-constrained economic dispatch with financial congestion rights (FCRs), a streamlined market approach to external transactions, and auction revenue rights. Phase 2 will include the remaining components of CMS including zonal/nodal selection by load, FCR options and congestion bidding, as well as full implementation of a MSS with a day-ahead financially binding market, demand-side bidding, a long-term reserve market solution, indicative scheduling, reserve availability bids, self-supply of operating reserves, rebidding, four-hour reserve markets and zonal bidding. The full text of the Revised Implementation Plan for CMS/MSS is available on the NEM Website.

 NYISO Report on Generation Issues

Pursuant to the Commission's Order, NYISO has submitted a Report evaluating the circumstances under which not paying for uninstructed overgeneration, power delivered above the amount scheduled or requested by the ISO, is justified and whether special market rules are necessary to accommodate the operating characteristics of intermittent generators such as wind, photovoltaic and small hydro facilities. The full text of NYISO's Report is available on the NEM Website.

 PJM Answer to Comments on RTO Proposal

PJM has filed an answer to comments on its RTO proposal. PJM argues that it satisfies the requirements for an RTO and that the comments submitted should be addressed by the PJM stakeholder process, not the Commission's RTO compliance proceeding. The full text of PJM's Answer is available on the NEM Website.

State Issues

New York

 ConEd Gas Settlement Negotiations Resume

ConEd gas settlement negotiations will resume on December 13, 2000, at the Commission's New York City Offices commencing at 1:00 P.M. NEM members planning to attend should contact headquarters ASAP.

 NFG Settlement Discussions

The next NFG settlement conference is scheduled for December 12, 2000, in Buffalo. NEM members planning to attend should contact headquarters ASAP.

 Comments Sought on Second Filing of EDI Collaborative

The Commission is seeking comments on the EDI Collaborative's second filing pertaining to the exchange of customer usage data. Comments are due January 22, 2001. The full text of the Notice Seeking Comments as well as the full text of the EDI Collaborative's Second Filing is available on the NEM Website.

New Jersey

 Senate Bill 1908 on Switching Verification

Senate Bill 1908 was introduced in the Senate on December 4, 2000. The Bill explicitly recognizes electronic signatures and audio recordings of telephone authorizations as valid means of verification of customer switching. The Bill is sponsored by Senator Inverso, sponsor of the NJ Energy Competition Act of 1999, and Senate Majority Leader Bennett and will next be considered by the Senate Economic Growth Committee. The full text of the Senate Bill 1908 is available on the NEM Website.

Many thanks to John Holtz of GreenMountain Energy for this summary.


 Emissions Regulations for Distributed Generation

The Texas Natural Resources Conservation Commission has issued a NOPR for a revised Air Quality Standards Permit for Small Electric Generating Units. Comments are due December 19, 2000. The full text of the NOPR on Air Quality Standard Permits for Small Electric Generating Units is available on the NEM Website.


 Comments Filed on Sale for Resale

Parties have submitted comments on the sale of electricity for resale by landlords to tenants and the apparent conflict between state caselaw and the energy competition statute that could be construed as allowing landlords to take tenants off of electric utility service to be served by the landlord. The following parties comments are available on the NEM Website: FirstEnergy, CG&E, DP&L, Columbus Southern and Ohio Power, Ohio Building Owners and Managers Association, Ohio Council of Retail Merchants, and Industrial Energy Users-Ohio.


 Competitive Metering WorkGroup

The next meeting of the Competitive Metering WorkGroup will be held on December 18, 2000, at 1:00PM, in the Public Service Commission's19th floor hearing room.


 Commission Order on Standard Offer Service

The Commission has authorized the utilities to increase their standard offer service rates. The Commission directed the utilities to adjust their standard offer service rates on an annual basis using the most recently available twelve months of data to calculate a fuel adjustment surcharge. The utilities' proposed filings were due December 6, 2000, to be effective January 1, 2001. The utilities are required to report their deferral balances as well as their fuel adjustment surcharge monthly amounts by July 1, 2001, so that the Commission can determine if an interim adjustment is necessary. The utilities are also required to file reports on their mitigation efforts. The full text of the Commission's Order is available on the NEM Website.


 Order on Electric Utilities Code of Conduct

The Commission has ordered the adoption of a single code of conduct applicable to all electric utilities and alternative electric suppliers. The code of conduct applies to activities beyond retail open access, requires functional separation of affiliates providing competitive services and products, requires affiliates that use the utility logo to indicate they are unregulated entities that are different from the utility, requires affiliates to pay fair market value for use of the utility logo, and requires pricing of services and products provided by the utility to an affiliate at the higher of fully allocated cost or market price. The full text of the Commission's Order setting forth the code of conduct is available on the NEM Website.

 Request for Comments on Gas Unbundling

The Commission has issued a request for comments on further unbundling of local distribution companies' services. Comments are due January 15, 2001. The full text of the Request for Comments is available on the NEM Website.


 Revised NOPR on Natural Gas Marketer Billing Practices

The Commission has issued a revised NOPR on natural gas marketer billing practices. Comments are due December 15, 2000. The full text of the Revised NOPR on Natural Gas Marketer Billing Practices is available on the NEM Website.


 Commission Adopts Provider of Last Resort (POLR) Regulations

The Commission has adopted regulations on POLR service furnished by an electric distribution utility or alternative sellers. The regulations provide for filing of POLR implementation plans, separation of EDU employees engaged in the POLR function and distribution function, and the prohibition of the promotion of POLR services. The full text of the Commission's Order and the POLR Regulations are available on the NEM Website.

 Workshop on Billing Practices and Payment Methodologies

The Commission has convened an investigation into acceptable billing practices and payment methodologies for all Nevada utilities. A workshop will be held in the proceeding on December 13, 2000. The full text of the Notice of Billing Workshop is available on the NEM Website.

Other Issues

 Volume 2 of UBP Report Issued

Volume 2 of the UBP Report on unbundled electricity metering has been released. A conference call on NEM ratification of Volumes 1 and 2 of the UBP Report will be held December 20, 2000, at 11AM EST. The full text of Volume 1 and Volume 2 of the UBP Report are available on the NEM Website.