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May 27, 2005
NEM Summer Executive Committee Meeting

NEM is currently planning its Summer Executive Committee Meeting. Due to member schedule conflicts, we are now tentatively scheduling the meeting for July 12-13, 2005. Please mark your calendars and plan to join us.

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.

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

H.Res.230 on Broadband over Power Lines

House Resolution 230 has been referred to the Committee on Energy and Commerce. The resolution states that, "the Federal Communications Commission should reconsider and revise rules governing broadband over power line systems based on a comprehensive evaluation of the interference potential of those systems to public safety services and other licensed radio services." The full text of H.Res.230 is available on the NEM Website.

Click here to view all past updates.
Georgia Considering Revisions to Integrated Resource Plans

The Commission has issued a notice of proposed rulemaking to amend the integrated resource plan procedure for long-term supply-side options. In response, Georgia Power and Savannah Electric prepared initial draft RFPs. As part of the RFPs, the utilities requested waiver of certain regulations regarding bid fees and bid evaluations. The Commission currently is hearing oral arguments about the utilities' 2004 integrated resource plans.

AGL Must Develop with Marketers Guidelines on the Release of Marketer Information As Part of Rate Case Order

The Commission issued an order on the Atlanta Gas Light rate case, with certain portions of the order now subject to a limited stay pending rehearing.

Of interest, AGL's cost of service study was rejected, and AGL is required to file the cost of service study 6 months in advance of the next rate case. In addition, AGL must track throughput by class and month and initiate a rate design workshop to review alternatives to the dedicated design day capacity methodology by January 1, 2006. In addtion, AGL must meet with marketers by August 1, 2005 to consider guidelines on the release of marketer information, with a report due by October 29, 2005. Finally, comprehensive affiliate transaction guidelines for AGL will be adopted by the Commission.

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Type II Standard Offer Service Proceeding Opened

The Commission has initiated a proceeding to examine issues associated with Type II Standard Offer Service (SOS). Type II SOS is generation service provided by utilities to any non-residential customer not eligible for Type I SOS whose PJM capacity peak load contribution is less than 600 kilowatts (but excluding existing utility special generation contract customers). Petitions to intervene are due June 7, 2005.

New Standard Offer Rates To Go Into Effect In Maryland

PEPCO's and Delmarva Power's new standard offer service rates become effective on June 1.

New Jersey
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Comments Requested on Reliability Must Run Charges

The Board is accepting comments on Atlantic City Electric Company, JCP&L, and PSEG's request to increase the transmission related charges to BGS-FP & BGS-CIEP customers. The Utilities' petition concerns the pass through and recovery of additional PJM Open Access Transmission Tariff costs that BGS Suppliers will be assessed by PJM pursuant to the Reliability Must Run charges recently approved by the FERC. Comments are due June 3, 2005.

New York
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Commission Affirms Utilities Cannot Charge ESCOs for Suspension Attempts

The Commission affirmed its earlier decision that utilities cannot charge ESCOs for attempted suspensions of distribution service, and fees may only be charged for completed suspensions. Of particular note, the Commission reasoned that it had the statutory authority to determine "what constitutes a reasonable amount of compensation for utility suspensions" and "to define what is meant by the term 'suspension' in reference to that compensation." The Commission also reasoned that to permit utilities to charge for suspension attempts would create a disincentive for utilities to implement the most efficient suspension processes.

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Pennslyvania to Adopt New Electronic Data Exchange Standards

On May 19, the Commission issued a tentative order adopting Version 2.5 of the Electronic Data Exchange Standards for electricity. Comments on the tentative order are due June 8. The order will become final if there are no adverse comments.

In the tentative order, the Commission has approved the continuation of the current version of GISB EDM version 1.4 through December 30, 2006. The Commission will require a transition to the NAESB Internet ET standard by no later than Janauary 1, 2007, with a working group to be be re-convened by January 2006 in order to develop the transition process.

In addition, all licensed suppliers and all utilities must file a letter report by June 30, 2005 addressing the status of each company's compliance with the recommendation that each market participant review the theoretical security holes in GISB EDM version 1.4 and the mitigation measures taken.

Reply Comments Date on POLR Extended.

The Commission has set June 27, 2005 as the due date for all parties to file reply comments on the comments to the Commission's proposed rulemaking governing provider of last resort and default service.

NEM filed comments in this proceeding and will review the other comments to determine if reply comments are necessary. NEM members should contact the NEM headquarters if you have any particular concerns.

Pennsylvania Moves Forward with the Renewable Energy Portfolio Standard Development

The Pennsylvania Working Groups continue to meet to discuss the issues related to alternative energy portfolio standards, including demand side management/energy efficiency and net metering/interconnection.

A strawman was issued by the demand side management/energy efficiency working group. The Mid-Atlantic Distributed Resource Initiative (MADRI)is considered to be the best starting point for the interconnection process standards with the Commission working as part of a regional basis. The MADRI Working Group has developed preliminary draft interconnection standards, with a final model expected in mid July/early August. The interconnection working group expects to use the final model to develop comments with draft regulations submitted to the Commission in October.

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