The Commission adopted the Governor’s proposed Sustainable Energy Plan with modifications. Accordingly, the Commission determined a Renewable Portfolio Standard (RPS) should be set as follows: 2% of the bundled retail load should be obtained from renewable energy resources as defined below in 2007, 3% in 2008, 4% in 2009, 5% in 2010, 6% in 2011, 7% in 2012 and 8% in 2013. Renewable resources are defined as "wind, solar thermal energy, photovoltaic cells and panels, dedicated crops grown for energy production and organic waste biomass, methane recovered from landfills, hydropower that does not involved the construction of new dams or significant expansion of existing dams, and other such alternative sources of environmentally preferable energy." The Commission determined that 75% of the renewable energy used to meet the RPS should come from wind power and 25% should come from other sources. The Commission set the Energy Efficiency Portfolio Standard as follows: years 2007-2008 at 10% reduction in load growth, years 2009-2011 at 15% reduction in load growth, years 2012-2014 at 20% reduction in load growth and years 2015-2017 at 25% reduction in load growth. The utilities and alternative retail electric suppliers are "expected" to participate in the Sustainable Energy Plan by filing implementation plans within thirty days of the Commission Resolution. The full text of the Commission Resolution is available on the NEM Website.

As part of the NEM Executive Committee meeting last week, the issue of utilities competition as utilities ("Monopoly Competition") instead of through affiliates on a level playing field with marketers was identified as a major, perhaps pivotal legal, economic and public policy issue that is critical to utility hedging activities, opt out programs and ultimately the ability to exit the merchant function, certainly the motivation to do so if a utility is also permitted to profit from commodity sales.

The NYSEG request to continue profiting from the merchant function is at issue in New York. NEM asked for an extension of time to incorporate our Executive Committee member and general membership views on this important issue that is squarely before the Commission in the NYSEG proposal submitted under the Statement of Policy.

The New York Commission has granted us (and for APA Act purposes everyone else who wants to comment) until July 29 to submit comments on NYSEG's proposal. We would appreciate all of your comments to reflect upon the issues discussed at the Executive Committee meeting. A draft document will be circulated for review under separate cover. The full text of the Notice of Extension is available on the NEM Website.

The Commission approved NFG's two year rate plan. The plan included provision to replace current backout credits with unbundled rates for merchant service and billing service. (See Appendix A hotlinked here). The plan also provided for a purchase of receivables program with a discount rate of 2.6% for residential customers and .71% for C&I customers for the first two years. NFG will provide an outline for a Discounted Retail Access Transportation Service, akin to the O&R PowerSwitch model, within 30 days of Commission approval of the proposal. A collaborative will be convened to study a possible mass market migration pilot program. Additionally, NFG will develop a pilot program to support marketer hedged price options. The plan also provided migration incentives for NFG. The full texts of the NFG Rate Plan and Appendices are available on the NEM Website. The full text of the Commission Order will be posted when made available electronically.