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.

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.

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.

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.

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.

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.

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.

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.

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 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.