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July 15, 2005
USCL Corporation Elected to NEM Executive Committee

NEM is pleased to announce that USCL Corporation has been elected to the NEM Executive Committee. USCL is an emerging stage company that has developed state-of-the-art utilities metering, data telemetry, customer information display, and demand side automatic load control equipment. USCL will be represented within NEM by Tom Tamarkin, President and CEO, and Robert Block, Director. Mr. Tamarkin has been elected to Co-Chair NEM's Strategic Demand Response and Price Liquidity Committee as well as to Chair NEM's Advanced Metering and Information Technologies Committee. Mr. Block has been elected to Chair NEM's National Energy Technology Policy Committee.

NEM Summer Executive Committee Meeting

NEM's Summer Executive Committee meeting this week in Buffalo, New York was a great success. Many thanks to Kyle Storie of Advantage Energy and Mark Radtke of WPS Energy Services for hosting the meeting. NEM's National and Regional Policy Leaders were elected for the coming year. Bill Kinneary of Infinite Energy was elected as Chair of the Executive Committee and Stephen Wemple of ConEd Energy was elected as Vice Chair. The full list of newly elected NEM Policy Leaders is available on the NEM Website.

In the coming weeks, NEM will be working on additional policy recommendations to supplement NEM's "Prerequisites of Competition" that were endorsed and implemented in New York. These recommendations will be aimed at moving markets from their current transitional state to a competitive end state. Additionally, regional advocacy teams will be involved in outreach meetings with key Commissioners and their Senior Staff. Further details of the meeting and follow-up activities will be sent under separate cover.

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Consumer Choice Education Highlighted in Energy Independence Act

The Energy Independence Act has been passed by the legislature. Importantly, this law requires that the Department, "conduct a proceeding to determine whether a practical, effective, and cost-effective process exists under which an electric customer, when initiating electric service, may receive information regarding selecting electric generating services from a qualified entity." The proceeding must be completed by December 1, 2005, and implemented by March 1, 2006, or on a later date deemed appropriate by the Department. The full text of the Energy Independence Act is available on the NEM Website.

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Staff Report on Sustainable Energy Initiative

Commission Staff released a Report on the state's Sustainable Energy Initiative. With respect to both renewable energy as well as demand response and energy efficiency programs, Staff makes three recommendations: 1) rather than impose a mandatory standard, the voluntary participation by electric public utilities as well as certified alternative retail electric providers should be encouraged; 2) a rate impact test should be adopted to ensure that participating utilities do not place excessive reliance on resources that are uncompetitive at current prices; and 3) the same requirements concerning arms-length transaction requirements should apply to participating utilities whether they are acquiring conventional electric supply resources or renewable or energy efficiency resources. The full text of Staff's Report is available on the NEM Website.

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DTE Filed Application to Offer Renewable Resources Program

DTE has filed an application to offer a renewable resources program. As described by DTE, the program will be, "a Standard Contract Rider and will be available on a voluntary first come-first served basis to residential, commercial and industrial full-service metered Detroit Edison electric customers who desire to pay a renewable resources premium to promote the operation and development of renewable power facilities in the Great Lakes region." DTE proposes that customer participation in the program be discretionary and that customers may terminate participation on three days notice. DTE notes that it plans to retain a renewable energy marketing firm to promote the program. The full text of DTE's Application is available on the NEM Website.

Proceeding Instituted on Collection of GTI Surcharge

The Commission opened a proceeding to examine the appropriate statewide level of future support and funding for the Gas Technology Institute (GTI). The FERC surcharge that funded the GTI has been discontinued. The Commission will consider a mechanism for the recovery of GTI-related support and funding including for example an energy surcharge to apply to all gas distribution and transportation volumes in Michigan, a per-meter charge, or another method of cost recovery. Petitions to intervene in the proceeding are due August 15, 2005. The full text of the Order Initiating Proceeding is available on the NEM Website.

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