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June 3, 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.

Notice of Inquiry on Calculation of Available Transfer Capability

FERC issued a Notice of Inquiry on the calculation of Available Transfer Capability (ATC). The Commission reasoned that the lack of standardization and coordination of ATC can result in unduly discriminatory behavior and also affect system reliability. FERC specifically seeks comment on: (a) definitions of Available Flowgate Capability (AFC), ATC, Capacity Benefit Margin (CBM) and Transmission Reserve Margin (TRM); (b) the advisability of revising and standardizing AFC, ATC, TRM and CBM values; (c) the advisability of developing interconnection-wide standards for the Eastern Interconnection and the WECC; and (d) the fastest way to establish industrywide standards for ATC calculations. Comments are due 60 days after publication of the Notice of Inquiry in the Federal Register. The full text of the Notice of Inquiry is available on the NEM Website.

Click here to view all past updates.
Consumer Education Advisory Board to Expand

The Commisssion established a Consumer Education Advisory Board (CEAB) in 1999 to help consumers transition from a regulated market environment to a competitive electric market. The Commission has decided it would be helpful to expand the membership of the CEAB since transition period rate caps are expiring and customers are being moved to market-based pricing. Those interested in getting involved in the CEAB should contact Christine Nizer at 410-767-8047. The full text of the Notice on the CEAB is available on the NEM Website.

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Default Service Technical Conference

The Department will hold a technical conference on June 20, 2005, at 9:30AM on default service issues. Specifically, the Department wants to provide parties an opportunity for further discussion of the issues associated with the utilities procurement of default service power for residential and small C&I customers. The Department also wants to discuss initiatives it could undertake to facilitate the development of a competitive retail market for smaller customers. Those that wish to participate should notify the Department by June 13, 2005 to The full text of the Notice of Technical Conference is available on the NEM Website.

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ABATE Petitions for Reduction of DTE Stranded Costs

ABATE has petitioned the Commission to revisit its Order on DTE's rates and reduce or rescind DTE's stranded cost charges. ABATE argues that the stranded cost surcharges are too high because of the reduction in participation in DTE's choice program and that waiting for a true-up will further endanger the choice program. ABATE also asked for establishment of a policy on the treatment of wholesale sales revenues such that they could be used to mitigate stranded costs. The full text of ABATE's Filing is available from NEM headquarters.

New York
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ConEd Green Power Collaborative

The first meeting of the ConEd green power collaborative will be held June 22, 2005, at 10AM at the NYPSC's New York City Office. Additional details will be forthcoming.

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NEM Comments on DEO Application to Exit the Merchant Function

NEM submitted comments on DEO's application noting that it, "supports a full exit from the merchant function and applauds DEO’s efforts to reach that end state in a reasonable time frame." NEM urged the parties to eliminate the uncertainty of backsliding to cost of service rates as it raises the cost of capital and urged the Commission to commit to a Phase 2 implementation. NEM argued that DEO's restructuring will better reflect its role as a distribution service provider. Shifting risk from ratepayers to risk managers creates added wealth for the State, the consumers, the utility as well as the marketplace. NEM also argued that DEO's proposal to replace Gas Cost Recovery service with a Standard Service Offer will reduce customer confusion caused by the current GCR mechanism. The full text of NEM's Comments is available on the NEM Website.

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