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June 17, 2005
NEM Summer Executive Committee Meeting

NEM is currently planning its Summer Executive Committee Meeting. The meeting is scheduled for July 12-13, 2005, in Buffalo, New York. Please mark your calendars and plan to join us. Please use this hotlink to register.

During the Summer Executive Committee Meeting, we elect our new leadership for the coming year, assess the priorities we identified at the January Executive Committee Meeting and identify any midcourse corrections we need to take for our advocacy agenda for the remainder of the year. Additionally, we will debate and vote on: 1) key retail energy restructuring issues including structure of retail auctions, and opt-in requirements when utility price increases; 2) key wholesale energy restructuring issues including structure of wholesale auctions; and 3) review existing NEM gas, electric and code of conduct policy recommendations, development of recommendations on demand response strategies and pricing, and formation of policy drafting committee. We will discuss integrated advocacy and p.r. strategies for achieving specific migration targets as well as how to focus member resources on quantitative analysis in support. Use this hotlink to view the Agenda.

Nominations for NEM's national policy leadership positions should be forwarded to headquarters ASAP.

2004 State of the Markets Report

FERC's Office of Market Oversight and Investigations issued its 2004 State of the Markets Report. The report discussed four key issues affecting natural gas and electric markets in 2004. First, it found that despite record cold weather in New England that electric and natural gas markets responded well. However, the need for greater coordination between the two industries was evident. Second, investment in transmission increased in dollar terms but lagged behind investment in generation, and few high-voltage lines were added. Third, the quality of published price indices improved as the quality of information reported to index publishers improved and more information about published prices was available. Finally, market bahvior rules have had an overall beneficial effect on wholesale energy markets, but there is concern about clarity of the rule related to market manipulation. The full text of the 2004 State of the Markets Report is available on the NEM Website.

Click here to view all past updates.
Comments Sought on Resource Adequacy Requirements Report

The Commission is seeking comments on the Phase 2 Resource Adequacy Requirements (RAR) workshop report prepared by advisory staff. Comments are due on July 8, 2005, and reply comments are due July 18, 2005. The Report discusses the following issues: 1) who has the RAR obligation and what the obligation entails; 2) coordination between the Commission, CAISO, and CEC to ensure forecasted system and locational peaks will be met with reliable generation; 3) Commission establishment of how the load serving entities (LSEs) will be measured against forecast peak demand; 4) how to evaluate the relative reliability benefits of various types of resources, including the ability of a resource to meet load demands in areas facing constrained transmission; and 5) establishing reporting compliance, review of each LSEs RAR portfolio and consequences for non-compliance. The full text of the Resource Adequacy Requirements Report is available on the NEM Website.

Draft 2005 Energy Action Plan Released

The Californa Public Utilities Commission and the California Energy Commission have issued a draft 2005 Energy Action Plan. The Plan states that energy efficieny is the resource of first choice for meeting the State's energy needs. With respect to demand response, dynamic pricing tariffs should be implemented that can lower consumer costs and increase system reliability. Decisions on statewide installation of advanced metering infrastructure for all small commercial and residential utility customer should be issued by early 2006. Steps should be determined to implement the Governor's renewable standard goal of 33 percent of electricity sales by 2020. With respect to the electricity market structure, rules should be developed to permit an effective core/non-core retail market structure and capacity markets should be developed. All load serving entities should meet the state's adopted reserve and resource adequacy requirements of a 15-17 percent planning reserve by June 2006. The full text of the Draft Energy Action Plan is available on the NEM Website.

Click here to view all past updates.
Comments Sought on Revised DG Interconnection Tariff

The Massachusetts Distributed Generation Collaborative filed its 2005 Annual Report including a Revised Model Interconnection Tariff. The Department is requesting comments on the Revised Model Interconnection Tariff by June 23, 2005. The full texts of the Request for Comments and 2005 Annual Report are available on the NEM Website.

New York
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Meeting on RG&E's Voice Your Choice Program

The next phase of RG&E's Voice Your Choice Program will begin on October 1, 2005. Staff scheduled a meeting for June 28, 2005, from 10:30AM to 1PM in the 19th Floor Board Room at the PSC's Albany offices to discuss lessons learned thus far, i.e. what worked, what can be improved, and how can the program be made more effective and understandable to consumers. A conference call number will be made available. Those planning to attend should contact

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Mon Power Ordered to Discuss Transfer of Service Territory to AEP

The Commission ordered Mon Power to begin discussions with AEP on the transfer of Mon Power’s Ohio service territory to AEP. Mon Power has filed an application to implement a competitive bidding process after the end of its market development rather than a rate stabilization plan (RSP) as utilized at the other utilities. The Commission said that, "We believe that Mon Power’s customers may be facing potential rate shock and rate instability" and that it is, "resolute that the RSP option is the best option for Ohio's electric customers." The Commission has the authority to transfer a part of a utility's service territory to another utility where it determines the public interest would be promoted in doing so. "Since Mon Power is not willing to propose an RSP, the Commission will consider whether another EDU could acquire Mon Power's service territory and serve Mon Power's customers through an RSP." Mon Power and AEP are to jointly file a report detailing the outcome of their discussions within 14 days of the Order.

The full text of the Order is available on the NEM Website.

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