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December 3, 2004
PPLSolutions Elected to Executive Committee

NEM is pleased to announce that PPLSolutions has been elected to the NEM Executive Committee. PPLSolutions, LLC was formed as a subsidiary of PPL Corporation, a Fortune 500 company, to provide front-, mid- and back-office services in the competitive retail energy market. PPLSolutions will be represented within NEM by Michael R. Toner, Vice President, Operations, Joseph P. Clifford, Director - Sales and Marketing, Thomas W. Lockner, New Market Manager, Dennis R. McGraw C.E.M., Manager Business Development, and Natalie A. Vega, Business Development Manager.

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. Many sincere thanks to Katie Papadimitriu and Constellation as well as to Peter Weigand and Ian Carter of Commerce Energy Group for their generosity in offering to host the meeting.

The Winter Executive Committee Meeting is important in many respects. NEM's Executive Committee members establish the association's priorities among 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: Politically Acceptable Accelerated Migration Timing, Method and Strategies; Consolidated Utility Billing; Consolidated Retailer Billing; Proper Timing, Structure and Purpose of Retail Auctions; as well as the Formation of working groups to develop a portfolioi of cost-effective regulatory approaches to accelerate customer migration.

Policy Chairs are requested to sumbit their recommended agenda items to headquarters no later than COB Friday, December 10, 2004 so that a draft agenda can be circulated by Wednesday, December 15, 2004. 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 Restructuring Conference will be held at the Marriott Metro Center on April 26-27, 2005. in Washington, DC. Many thanks to SPECIFIC SPONSORS HERE for offering to sponsor this event. Sponsorship ads and logos are due for advertisements as soon as possible. Suggested topics and speackers should also be sent to headquarters no later than Wednesday, December 15, 2004. FERC Chairman Patrick Wood, Commisioners 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 Allen Schriber from Ohio, and high-ranking Administration officials have also been invited.

Please use this hotlink to register for the event.

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NEM Analysis of Gas Tariff Provisions

NEM has completed a detailed tariff analysis of the following natural gas settlements: PG&E, SoCalGas, Southwest Gas and San Diego Gas and Electric. Copies of the analyses are available from NEM Headquarters upon request. The tariff analyses are also available to members on the NEM web site.

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Commission Proposes New Net Metering Rules

The proposed rules would permit self-generating customers to sell their surplus power to utilities. These customers would be billed only for new kWh purchased from the utilities and not if they return more power to the utility than they purchased. Thirty days before hookup, they must also sign a standard interconnection agreement, which the utility will then have an additional thirty days to approve or reject. Utilities would also be required to provide net metering customers with meters that can measure power flows both ways free of charge.

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Competition Technical Implementation Working Group Formed

The new working group's agenda will include, but will not be limited to, the following issues: 1) Supplier consolidated billing, 2) Seamless move (if a customer moves within a service territory - or even between service territories in Maryland - the customer is able to continue to take uninterrupted service from a retail supplier), 3) Multiple scheduling coordinators (the settlement in Case 9015 contemplates that a technical working group would propose a generic resolution of this issue), and 4) EDI information exchange using some alternative to the current Value Added Networks. The meeting will take place on December 15, 2004 at 10:00 at PHI in Baltimore. Any licensed supplier is welcome to attend.

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Commission Issues DTE Rate Plan and Unbundling Orders

In its Order, the Commission reduced DTE's stranded cost charge to 3 mills/kWh for secondary customers and 1 mill/kWh for primary customers, down from the 4 mills/kWh charge the Commission set on an interim basis in February. All customers will be subject to a .5 mill/kWh choice implementation surcharge beginning at the expiration of rate caps on January 1, 2006. DTE must also initiate a collaborative to resolve issues related to competitive metering and file a report of its resolution by March 15, 2005.

Customers are also prohibited from returning to bundled service for a period of two years and upon returning to bundled service, must remain for a one year minimum stay period. In addition, customers must give notice by December 1 if they intend to take bundled service during the summer season beginning June 1 (the equivalent to a six month notice period). Customers who fail to either give notice of return or remain on choice service for two years will pay the higher of tariff prices plus 10% or the market-based rate plus 10% for any power taken from the utility. Existing choice customers will be grandfathered into the plan, allowing them to return to bundled service for summer 2005. The full text of the Order is available on the NEM web site.

In addition, the Commission ordered DTE to file a new rate unbundling case in 120 days. The Commission adopted NEM's long-held position that DTE's rates will be unbundled on a fully allocated embedded cost basis. The initial allocation will be in three different components: transmission, distribution and generation. The Order is available on the NEM web site.

Stranded Costs Set for Consumers for 2002, 2003

The Commission set Consumers stranded costs for 2002 and 2003 at $63,214,364, resulting in a stranded cost charge of 1.2 mills/kWh. The full text of the Order is available on the NEM web site.

New Jersey
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First CIEP Education Working Group Meeting to be Held

The Commercial and Industrial Energy Pricing Group has been formed to ensure that information about 2005-2006 energy options reaches the appropriate energy procurement officers within the CIEP community. The working group will develop CIEP education materials, help ensure the broadest dissemination of information regarding BGS-CIEP seminars and assist in developing possible new services for large business customers. The working group's tasks are expected to be completed by February 2005, consisting of no more than three meetings. The first meeting will take place on December 8, 2004 from 10-12 in the Board's Eighth Floor Hearing Room.

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Commission Issues Interim GCR Ruling for Columbia and DEO

NEM members successfully petitioned the Commission to increase Columbia's interim GCR rate to 92.371 cents per 100 cubic feet from the current GCR rate of 87.947. Pursuant to the Commission's Order, the GCR rate will be in effect for one month beginning November 29, 2004 and ending December 29, 2004. Likewise, DEO filed an increase of its GCR rate to $9.325/Mcf, to be in effect from December 2, 2004 - January 4, 2005. The full text of Columbia's Interim GCR Rate Order is available on the NEM web site. Likewise, the full text of the DEO's Interim GCR Rate Order is available on the NEM web site as well.

Commission Revises CG&E's Rate Stabilization Plan

The Commission recently revised the stipulation establishing a rate stabilization plan for CG&E that it approved on September 29, 2004. The Market Development Period will end for non-residential customers on December 31, 2004 and for residential customers on December 31, 2005. 50% of non-residential customers will be able to avoid the rate stabilization charge and the annually adjusted component by shopping through 2005. Likewise, 25% of residential customers who shop may avoid the same charges during 2005. The full text of the Order is available on the NEM web site.

Click here to view all past updates.
Commission Seeks Comments on New DG Hookup Rules

These rules would govern small DG hookups to the grid, which the Commission hopes will not only result in more manufacturers entering the market but also will improve reliability on the grid. Specifically, the Commission's goals with regards to this rulemaking are to: 1) eliminate unnecessary barriers to entry in the distributed generation market, 2) promote distributed generation in order to provide peak demand responsiveness, 3) enhance grid reliability, 4) increase transparency in the interconnection process, 5) create uniformity and thereby ease the difficulty presented by a patchwork of different procedures, and 6) lower the overall cost of locating and placing distributed generation across the Commonwealth.

States such as New York, New Jersey and Texas and organizations such as FERC and NARUC have already passed standardized DG hookup rules. Comments are due 60 days after the publication of the notice in the Pennsylvania Bulletin. The Advanced Notice of Proposed Rulemaking is available on the NEM web site.

PECO Issues Request for Proposals for Transportation and Storage

PECO has issued an RFP for transportation and storage contracts. Proposals are due by COB on December 17, 2004. The full text of the RFP is available on the NEM web site.

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