Document Search
Site Search
Advanced Search
Updates & Alerts
News & Media
Upcoming Meetings
Deregulation Library
Member Services
ACN Energy
Advantage Energy
AGL Resources
Agway Energy
Allegro Development
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
First Data
First Energy (Regional Member)
InterContinental Exchange, Inc.
Interstate Gas Supply
IMServ (Invensys)
InBusiness TeleServices (Regional Memembers)
KeySpan Energy
Media Fusion
New York Mercantile Exchange
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 31, 2004
Infinite Energy Elected to Executive Committee

NEM is pleased to announce that Infinite Energy has been elected to the NEM Executive Committee. Infinite Energy markets wholesale and retail energy products in Georgia and Florida and has recently opened up a new office in New Jersey. In New York, Infinite Energy markets under the name Intelligent Energy®. The primary wholesale markets for the firm include utilities, municipalities and other trading organizations. Infinite Energy will be represented within NEM by Jeff Traynham, General Counsel, and Michael D’Angelo, Director of Regulatory Affairs.

NEM's Annual Winter Policy, Planning and Development Meeting, Chicago (January 19-20, 2005)

NEM's Annual Winter Executive Policy, Planning and Development Meeting for 2005 will be held on January 19-20, 2005 at Constellation NewEnergy's offices in Chicago.

The Winter Executive Committee Meeting is held each year to establish the association's priorities for advocacy in 2005. Executive Committee members and Policy Chairs will prioritize the states, utilities, issues and positions for NEM's advocacy in 2005.

Please use the following hotlinks to view NEM's Issues Lists for the following topics: wholesale issues, retail issues and technology issues.

Issues identified for NEM advocacy in 2005 include: NEM's position on the timing, method and preferred utility incentives to Accelerate Customer Migration: Consolidated Utility Billing; Consolidated Retailer Billing; Proper Timing, Structure and Purpose of Retail Auctions; as well as the Formation of working groups to review and revise NEM Policy Positions and to develop a portfolio of cost-effective, regulatory approaches to accelerate customer migration.

Please use this hotlink to sign up for the event. The attire will be casual and all attempts will be made to get us out in one day.

NEM's Annual Restructuring Conference - April 26 & 27, 2005

NEM's Annual Spring Membership Meeting and National Restructuring Conference will be held at the Marriott Metro Center on April 26-27, 2005. in Washington, DC. Many thanks to Centrica, Commonwealth Energy, ESG, Excelergy, Interstate Gas Supply, Itron, Proliance and SAP for offering to sponsor this event. Sponsorship ads and logos are due for advertisements as soon as possible.

FERC Chairman Patrick Wood, Commissioners Brownell, Kelly and Kelliher in addition to CA Deputy Secretary of Energy Joseph Desmond, NYPSC Chairman William Flynn and MADTE Chairman Paul Afonso have already confirmed to speak. Governor Schwartzenegger and Chairman Alan Schriber from Ohio, and high-ranking Administration officials have also been invited.

Sessions at the meeting include: The Proper Role of Policy Officials in the Context of Market-Based Regulations, The Future of Electrical Technologies– Roundtable on the Future of the Energy Industry after the End of the Transition Period, Role of Restructuring in Promoting Infrastructure Reliability – Restructuring Dividend and Transition to a Competitive Market – Cutting Edge Accelerated Customer Migration Strategies, Incentives and Consumer Dividends from the Utilities Exit from the Merchant Function.

Please use this hotlink to register for the event.

Commission Issues Orders on Market-Based Rate Filings

In its recent action, the Commission utilized its new initial screens for market power, which it developed in April 2004, to determine whether a seller is a pivotal supplier and how much of the market it controls. After a company satisfies both of the initial screens, the Commission then applies a rebuttable presumption that the company does not have market power. If a company fails either of the screens, the Commission applies the inverse presumption - that the company does possess market power.

In the Commission's recent action, approximately half of the 16 companies filings FERC reviewed were allowed to continue their market-based rates without any additional proceedings. Those companies that did not pass the initial screens will have 60 days to take one of three actions: 1) file a delivered price test, 2) propose case-specific market power mitigation or 3) accept default cost-based rates and file cost support for those rates. The full text of FERC's Release is available on the NEM web site. Click here to view the 16 orders FERC issued.

Click here to view all past updates.
BGE Files Residential Billing Option

On December 23, 2004, BGE filed a residential electric fixed bill option pilot program.

The filing will be discussed at the Administrative Meeting on January 19, 2005 and has an effective date of January 24, 2005. Comments are due by January 10, 2005. The full text of BGE's filing is available on the NEM web site.

Click here to view all past updates.
NEM Submits Comments on Default Service in Post-Transition Period

In its comments, NEM encouraged the Commission to implement direct competitive access for consumers. Arguing that though portfolio diversification would be a step in the right direction for the post-transition period, NEM posited that public interest is better served if competitive utility provided products, services, information and technology are outsource and funded with private “at-risk” capital, not with ratepayer guarantees. Next, in terms of the proper length of term for supply, NEM suggested that the duration of terms of supply chosen for an auction should also be closely examined to prevent a no risk "fixed price" utility offering from undermining competitive suppliers.

NEM supported the Department's consideration of a state-wide, uniform method of procurement in place of a Request for Proposals process for each utility. A properly structured auction process, based on a monthly formula tied to a widely known and credible index, such as the published indices, will send more accurate market-based price signals to consumers. This, in turn, permits consumers to make more accurate consumption decisions based on current market-conditions. The full text of NEM's Comments is available on the NEM web site.

New York
Click here to view all past updates.
NEM Submits Testimony in NFG Rate Case

In its testimony, NEM elaborated on Comments submitted in support of the Commission's August 2004 Policy Statements. NEM focused on accelerated migration and embedded cost unbundling. In terms of accelerated migration, NEM posited that the public interest is best served when competitive functions are outsourced, freeing up utilities to reinvest these savings into upgrades in infrastructure to improve their core competency - reliability.

Next, NEM argued that transparency is critical to competition as it provides the only way for consumers to see and respond appropriately to price signals. The more information provided consumers about how much each element of a utility bill really costs, the better and more informed resulting consumption decisions will be. NEM requested that the Commission require utilities to unbundle rates on a fully allocated embedded cost basis and to prevent cost-shifting from competitive to monopoly functions. The full text of NEM's testimony is available on the NEM web site.

Click here to view all past updates.
Anaylsis of GCR Regulations with Competitive Auctions

The Ohio Office of Consumer Counsel (OCC)is reviewing the benefits of of natural gas prices established through a competitive auction process versus traditional gas cost recovery (GCR)regulations. The paper concludes that the benefits of informed current consumption decisons based on current market prices should always yield higher benefits than consumption decisions based on retroactively adjusted prices determined by a regulatory process.

A regulatory “GCR” pricing process necessarily causes current consumption decisions to be based on past market conditions inflated by regulatory compliance costs. Accelerating the migration of current consumption decisions to rely on current price signals reduces (1) both public and private regulatory costs, (2) the utility’s regulatory and financial risks of disallowance, (3) a significant number of consumption decisions based on incorrect pricing signals by weather sensitive consumers who can least afford it, (4) the increased costs and risks shifted onto current market-based supplies financed with at risk capital that results from competition against past utility purchases financed with “no risk” ratepayer guarantees, (5) the costs to consumers of ill-informed consumption decisions as will as (6) the unnecessary costs to both the consumer and taxpayer of a government determination of “market prices.” Properly structured auctions of either "pre-aggregated demand or customers" is a lower-cost means of ensuring that accurate market based pricing minimizes each of these costs and risks.

Retroactive price adjustments (e.g. "true ups") misinforms a customers' current consumption decisions, and if in hindsight the utility is deemed to have made an imprudent purchase it might be disallowed, causing the utility losses as well. On the other hand, if energy marketers are unable to compete successfully to serve retail customers economically and efficiently under an auction process, it is private - not ratepayer - funds that are lost. The full text of the paper is available on the NEM web site.

Click here to view all past updates.
All Sub-Blocks Remain Open in Dominion Virginia Power's CBP

Dominion Virginia first requested bids for retail electric service to its three geographic sub-blocks beginning in March 2005 on November 19, 2004. As of December 14, 2004, when responses were due, all sub-blocks remain open.

The process will take place in two steps: first, interested entities will submit their qualifications to serve retail customers participating in the pilot program and, after reviewing submissions, Dominion Virginia will request qualified entities to respond to a request for bids. Those suppliers previously qualified are not required to submit qualifications again.

Responses to the Request for Qualifications are due by January 11, 2005 to or by mail. The full text of the Request for Qualifications as well as the Certification Form is available on the NEM web site.

* Member Login :

User ID: 



*****   Click Here to stop receiving NEM Regulatory Updates    *****

3333 K Street, N.W., Suite 110
Washington, D.C. 20007
Tel: (202) 333-3288     Fax: (202) 333-3266

© Copyright 2004 National Energy Marketers Association