Document Search
Site Search
Advanced Search
Updates & Alerts
News & Media
Upcoming Meetings
Deregulation Library
Member Services
ACN Energy
Advantage Energy
AGL Resources
Agway Energy
Alliance Data Systems
APS Energy Service Corporation
CASA - Customer Acquisition Specialists of America, Inc.
ConEdison Solutions
AES Contellation New Energy
Customer Link
Electric America
Elster Electricity
Energy America
Energy Clear America
Energy Services Group
Energy Source (Regional Member)
Excelon Corporation
Financial Engineering Assocation, Inc.
First Energy (Regional Member)
InterContinental Exchange, Inc.
Interstate Gas Supply
IMServ (Invensys)
InBusiness TeleServices (Regional Memembers)
KeySpan Energy
Media Fusion
New York Mercantile Exchange
OM Energy
Ontario Power Generation
Peoples Energy
Pinnacle West
Prebon Energy
ProLiance Energy
Sempra Energy Soulutions
Shell Energy Corporation
SPi Group
Southern Company
South Star Energy
Total Gas and Electric, Inc.
Tractebel Energy Services, Inc.
Unified Technologies
Vectren Source
WPS Energy
December 12, 2003
NEM Winter Executive Committee Policy and Planning Meeting

The Winter Executive Committee Policy and Planning Meeting is scheduled for January 20th and 21st, 2004, in Houston, Texas. The meeting will be held at the Pennzoil North Tower, 700 Milam, 20th Floor, Room 20014 (Pennzoil Conference Tower) Houston, TX 77002. The Executive Committee will prioritize the states, issues, utilities and advocacy positions for NEM in 2004. Please use this hotlink to sign up.

NEM's Annual Membership Meeting and National Restructuring Conference

Please register early for NEM's Annual Membership Meeting and National Restructuring Conference. It will be held on March 31 and April 1, 2004, in Washington, DC at the Capitol Hyatt. Energy Subcommittee Chairman Barton, FERC Chairman Wood, FERC Commissioner Brownell, CFTC Chair Newsome, CFTC Commissioner Brown-Hruska, NARUC President Wise, NJBPU President Fox, Illinois Chairman Hurley, Michigan Commissioner Chappelle, Ohio Commissioner Mason, Massachusetts Commissioner Keating and a number of other important speakers have already confirmed. If you wish to sponsor this event, please use this hotlink and contact headquarters. The exhibit space for this year is three times larger than last year's space, and Harts Magazine has offered to do a special section featuring our VIP sponsors. You may view the agenda and register for the event by using this hotlink. Registration Information is also available on the NEM Website.

FCC to Issue Broadband Over Powerline NOPR Early in 2004

The FCC plans to issue a Notice of Public Rulemaking (NOPR) on Broadband over Powerline (BPL) early in 2004. The FCC previously issued a Notice of Inquiry to get views on BPL interference with radio signals. NEM's Technology Policy Team was invited to a meeting on December 16, 2003, with the FCC on this topic.

PJM & MISO Are Taking Steps Toward a Common Market

MISO and PJM are continuing to move toward the development of a joint operating agreement to achieve a common market across the two regions. PJM and MISO file a progress report with FERC on the market integration effort every 60 days. PJM and MISO are trying to immediately implement certain reliability-related enhancements, including data and information exchange; calculations of available transmission capacity and available firm capacity; coordination of outages; joint operation of emergency procedures; coordination of regional transmission expansion plans; coordination of scheduling checkouts; and implementation of NERC-approved reliability plans. Recent updates include the modification of the joint operating agreement (JOA) and respective reliability plans to accommodate the March 1, 2004, date for the integration of Commonwealth Edison into PJM and a change in the MISO’s market implementation to December 1, 2004.

Upcoming Vote on Renewables and Choice

On December 18, 2003, the California Public Utilities Commission (CPUC) will vote on three plans involving renewables and energy choice. Two plans proposed by Commissioner Peevey and ALJ Walwyn would allow California electric utilities to sign up their customers for 5 years of power procurement contracts, while disregarding a new state law which requires minimum levels of renewable energy, and also blocks communities that are now seeking competitive electric service suppliers by committing their residents, businesses and public agencies into utility power contracts through 2009.

A 3rd plan by Commissioner Lynch would limit the December 18 utility procurement authorization to one year (2004), and calls for the CPUC to prepare an integrated approach to utility procurement that allows for Community Choice Aggregation and ensures compliance with the Renewables Portfolio Standard law after 2004. Both Community Choice (AB117) and the Renewables Portfolio Standard (SB 1078) laws were approved by the legislature and signed by the governor in September 2002 alongside the utility procurement law (AB57) that made it legal for the CPUC to commit ratepayers to long-term contracts again.

Pre-Hearing Scheduled For Consumers' 2002 Stranded Costs Case

The Michigan Public Service Commission will hold a public hearing to consider the March 4, 2003, application of Consumers Energy Company for approval to recover net stranded costs of about $103,265,369 through a recovery charge of $0.025821/kWh for the period of January 1, 2004 through December 31, 2004. NEM will request intervenor status on Monday. Any member wishing to participate should contact Headquarters.

The first public hearing in this matter will be held, January 6, 2004 at 9AM at the Commission's offices. This hearing will be a prehearing conference to set future hearing dates and decide other procedural matters. The full text of Consumers' Application for Determination of 2002 Net Stranded Costs is available on the NEM Website.

New Jersey
Board Issues Order for BGS Year 2 Auction

The BPU approved and modified the utilities Joint Proposal for procuring BGS for Year Two of the post Transition Period (starting on June 1, 2004) and beyond. The utilities proposed two simultaneous, multi-round, descending clock auctions for the procurement of services to meet the full electricity requirements of retail customers that have not chosen a Third Party Supplier (TPS). One auction will procure service for larger C&I customers through an auction to provide hourly-priced service (BGS CIEP Auction). The second auction will procure service for all other utility customers through a fixed price auction (BGS-FP).

The Board also held that all CIEP customers should continue to pay the Default Supply Service Availability Charge (DSSAC) and that the DSSAC should remain at its current level of $0.00015/kwh. The Board stated that it expects to address the issue of expanding the CIEP class at its next agenda meeting. The Board also held that a retail margin of 5mils/kwh is appropriate for BGS-FP customers with a load of 750 Kw or greater and a retail margin of 5 mils/kwh continues to be appropriate for BGS-CIEP customers. The full text of the NJBPU Order is available on the NJBPU Website. A NEM Analysis of the Joint Proposal is available upon request.

New York

The NYPSC issued an Order in the HEFPA proceeding. The NYPSC affirmed its mandatory pro-ration policy. The Order also clarified multiple issues on pro-ration, suspension, and customer information. The Commission declined to require utilities to offer to purchase ESCO receivables reasoning that ESCOs and distribution utilities are in the best position to take responsibility for negotiating the business arrangements required for the latter to purchase ESCOs’ accounts receivable. The Commission did recognize however that, "the purchase of accounts receivable, when coupled with other aspects of an aggressive retail access program, may help foster the development of residential retail markets."

HEFPA implementation and pro-ration will be instituted before changes to the UBP and the EDI protocols are finalized. A collaborative process will be formed to develop any required changes to the UBPs and EDI protocols. The full text of the Order is available on the NEM Website. An additional copy of a NEM Analysis is available upon request.

NYPSC Issues New Stand-By Rates for Central Hudson

The NYPSC issued an Order on standby rates for Central Hudson (CH). The Order takes effect on July 1, 2004. It allocates costs between as-used demand charges and contract demand charges; the charges for demand exceeding contract levels; and procedures and criteria for revising contract demand levels. Customers will be offered the option of hourly load integrated energy service pricing. Under certain conditions, the utility and a customer may negotiate an individual agreement governing a customer's election to disconnect itself from the grid, or an individual agreement establishing standby rates for a customer that sells most of its energy output to third parties.

In contrast to the previous standby rate orders, this Order has provisions for net energy metering--i.e., the company's purchase of a customer's energy output--for customers with photovoltaic or wind-powered on-site generation installations, up to a company–wide total of 0.8 MW of OSG capacity.

Depending on their load patterns, some pre-existing standby customers are expected to pay higher electric bills under the new rates than at present. To mitigate any such adverse impact, pre-existing customers that prefer to avoid an abrupt transition will be offered a phase-in of standby rates over eight years starting July 1, 2004.

Customers whose that use an "eligible designated technology" and enter service after September 19, 2003, will have the option of a five-year phase-in (starting July 1, 2004) or a permanent exemption from the standby rates. "Eligible designated technology" includes "fuel cell; wind; solar thermal; photovoltaics; sustainably-managed biomass; tidal; geothermal; methane waste; or combined heat and power systems of less than 1 MW." The phase-ins for pre-existing or designated technology customers, and the exemption for the latter, are conditioned on entering service by May 31, 2006. The full text of the Order is available on the NEM Website.

NYPSC Order on DG Gas Rates

In May 2002, the NYPSC instituted a proceeding to consider gas rates for distributed generation (DG) technologies. The NYPSC's April 24, 2003 Order directed the local gas distribution companies (LDCs) to file tariffs instituting firm delivery service for C&I DG customers by July 23, 2003. Staff reviewed the tariff filings and has identified areas where the utilities’ filings were not in compliance with the April 24 Order. Staff recommended and the NYPSC approved that the DG tariff amendments be allowed to become effective, provided that the LDCs comply with Staff's recommendations: (1) KeySpan should revise its tariff to eliminate minimum annual bill provisions; (2) NiMo should amend its tariff to: (a) revise its proposed DG rates so that they are based on existing rates for C&I customers rather than on an ECOS Study that has not, as yet, been adopted by the Commission; and (b) eliminate its proposed demand charge for customers with DG equipment rated at less than 5 Mw; and (3) Con Ed/O&R should amend its tariff to: (a) revise their rates to define load factor on the basis of the customers’ winter peak demand, and (b) eliminate the 50% minimum load factor in the minimum monthly bills and remove the sunset provision from their DG tariffs. LDCs must file the tariff amendments listed above to become effective on a temporary basis on not less than one day’s notice on January 1, 2004. The full text of the Order is available on the NEM Website.

New York Creates New Agencies To Foster Competition

New York regulators decided to create offices of Retail Market Development (ORMD) and Economic Development & Policy Coordination (OEDPC). The new agencies will replace the offices of Consumer Education & Advocacy (OCEA) and Competition Transition. The agencies will be involved in policy development, competitive metering and competition-related outreach along with coordinating the design and implementation of retail access programs. The agencies will be involved in overseeing EDI, performance based incentives for increasing customer choice, monitoring and updating retail access procedures, encouraging suppliers to enter the market and resolving complaints.

PUCO Sets Procedural Schedule for CG&E Pricing Application

PUCO established a procedural schedule for Cincinnati Gas and Electric's (CG&E) application to modify its market-based standard service pricing for non-residential electric customers and establish an alternative competitive-bid service rate option. The Commission also requested that the company file a proposed rate stabilization plan. On January 10, 2003, CG&E filed an application detailing its proposal to offer a market-based generation rate to non-residential customers that do not switch to a competitive electric service provider by the end of the market development period. In its application, CG&E also proposed to establish a competitive bidding process that would provide non-residential customers with another rate option through an offer from a competitive retail electric service provider. The Commission requested that the company submit a proposed rate stabilization plan. On January 26, 2004 CG&E will a file a proposed rate stabilization plan, on February 24, 2004 a technical and procedural conference will be held. Members wishing to participate in this case should contact Headquarters before March 2, 2004, the deadline for filing motions to intervene and objections to CG&E's proposed rate stabilization plan.

3333 K Street, N.W., Suite 425
Washington, D.C. 20007
Tel: (202) 333-3288     Fax: (202) 333-3266

© Copyright 2001 National Energy Marketers Association