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May 30, 2003
NEM Executive Committee Meeting

NEM Summer Executive Committee Meeting to be held in Chicago at Constellation NewEnergy's Headquarters (Click here for map), on June 30, 2003 and July 1, 2003. The meeting will start at 9AM on June 30 and all attempts will be made to finish business in one day. This meeting will be for NEM Executive Committee Members only. A block of rooms has been reserved at the rate of $159 per night at the W Chicago City Center. Place your reservations at (312) 917-5640 or (866)833-9330. Reservations must be received by June 18, 2003, in order to guarantee the discounted rate.

Also, Please Register on the NEM website so we may have your meeting materials sent and ready for you in Chicago.

There are significant wholesale, retail, legislative, trading and technology issues currently facing NEM, and the industry. All Executive Committee Members are requested to attend. The agenda is being revised and will be sent out next week.

Members are requested to forward additional agenda items to headquarters at your earliest conveneince.

Prebon Energy and WestWater Research Collaborate on Innovative Water Management Services

Prebon Energy and WestWater Research will jointly develop a full range of water asset management services to assist energy and industrial clients. This joint effort will focus on three critical areas: (1) Identifying new and existing water sources, (2) Assuring reliable and cost-effective water supplies, (3) Acquiring secure rights to water supplies. Prebon and WestWater will also identify strategies to link greenhouse gas emissions trading with the development of water pollution credits. Further information on the Prebon-WestWater Joint Venture is available on the NEM Website.

Additionally, Prebon and WestWater will host the second annual Water Resources Symposium on June 2, 2003, at the Bellagio Hotel in Las Vegas, Nevada. The symposium is comprised of five sessions with industry leaders: (1) Financing Water Development, (2) Chapter 11 - Hidden Value in Water, (3) Water Resources Development, (4) Negotiating Water Delivery Hurdles, and (5) Water Marketing Abroad. A Registration Form for this event is available on the NEM Website.

Illinois
ICC Adopted Internet Enrollment Rules

Pursuant to NEM's urging, the ICC adopted internet enrollment rules which will be effective starting July 1, 2003. The rule contains sections on the following: (1) definitions, (2) criteria by which to judge the validity of an electronic signature, (3) method by which the authenticity of electronic signatures may be proven, and (4) additional requirements for an electronic letter of agency (LOA). Electronic signature was defined as an electronic sound, symbol or process attached to or logically associated with a LOA and executed by a person with the intent to sign the LOA. A recording of oral assent is not an electronic signature. Under the rule, an electronic LOA must provide the means by which any future correspondence between the customer and retail electric supplier (RES) will be sent and a conspicuous statement that residential customers may cancel the enrollment within 3 business days after the Internet enrollment. The full text of the Internet Enrollment Rules is available on the NEM Website.

New York
NEM Submits Comments on Mandatory Hourly Pricing

NEM submitted comments on mandatory hourly pricing. NEM supports real-time pricing and submitted that advanced metering and related technologies enable the efficient management of both energy supply and demand through timely, accurate dissemination of critical real-time energy usage information. NEM submitted that New York commercial and industrial consumers' concerns about monthly bill variations are more than adequately addressed by ESCO fixed-rate options. Under fixed-rate service, the ESCO will assume the risk that the consumer is unwilling to speculate on.

NEM also submitted that serving certain utility customers under mandatory RTP may be an efficient way to promote the Commission's goals of more effectively reducing demand and peak period pricing and encouraging conservation. NEM offered its industry wide technology and supply experts to the Commission to work together with utilities to accomplish these objectives in an effective and timely manner. NEM urged the Commission to refrain from mandating hourly pricing on ESCOs and to instead, allow the market forces of supply and demand to determine which types of energy efficient and DSM products and services will be available to New York's consumers. The full text of NEM's Comments are available on the NEM Website.

ALJ Issues Schedule For Next Phase of Renewable Portfolio Docket

The ALJ issued a schedule for comments in the next phase of the renewable portfolio proceeding. There will be a workshop on cost/benefit study methodologies in mid-June (exact date wil be set shortly). Initial comments filed on all issues except cost studies are due July 9, 2003, and cost studies are to be filed July 23, 2003,. Also, on July 23, 2003, a Draft Generic Environmental Impact Statement will be issued. Initial comments on cost studies and reply comments on all issues besides cost studies are to be filed on August 15, 2003. Reply comments on cost studies are due August 26, 2003.

Ohio
Stipulation Offered in DP&L Case

DP&L offered a Stipulation in the DP&L case that would extend the Market Development Period (MDP) two years until December 31, 2005 and extend the price freeze through 2005. Under the Stipulation the Signatory parties agree to a 3-year rate stabilization period (RSP) that would start on January 1, 2006 and ending December 31, 2008. Under the RSP, DP&L would provide a market based standard service offer (SSO) and residential customers would continue to get the 5% rate reduction to unbundled generation. Additionally, the Stipulation would terminate the Regulatory Transition Cost (RTC) and Customer Transition Cost (CTC) and add the corresponding rates to the electric generation service rates starting January 1, 2004. The Stipulation also establishes shopping credits for all customers during the extended MDP.

NEM members were generally not party to this Stipulation. NEM members have expressed opposition with this Stipulation and urged NEM to oppose it. The full text of the Stipulation and an NEM Analysis of the Stipulation are available on the NEM Website.

PUCO Issues Electric Choice Market Activity Report

PUCO issued a report to the Ohio General Assembly that provides a biennial overview of Ohio's retail electric choice programs' market activity. The report provides an update on the status of Ohio's competitive electric market using the official switching statistics and a summary of the key market development issues currently before the Commission. The report states that aggregation programs account for nearly 93 percent of residential customer switching, more than 88 percent of commercial customer switching, and nearly 20 percent of industrial customer switching. The Report also states that in the residential market, the megawatt hours sold by alternative suppliers reached 60 percent in the Cleveland Electric Illuminating Company territory, 36 percent in the Toledo Edison Company territory, 22 percent in the Ohio Edison Company territory, and 2 percent in the Cincinnati Gas and Electric Company territory. In the commercial market, the megawatt hours sold by alternative suppliers reached 50 percent in the Cleveland Electric Illuminating Company territory, 51 percent in the Toledo Edison Company territory, 38 percent in the Ohio Edison Company territory, 32 percent in the Cincinnati Gas and Electric Company territory, 9 percent in the Dayton Power and Light Company, and 6 percent in the Columbus Southern Power Company territory. In the industrial market, the megawatt hours sold by alternative suppliers reached 32 percent in the Ohio Edison Company territory, 28 percent in the Dayton Power and Light Company territory, 20 percent in the Cleveland Electric Illuminating Company territory, 18 percent in the Cincinnati Gas and Electric Company territory, and 5 percent in the Toledo Edison Company territory. Chairman Alan R. Schriber stated in the report that of the twenty-four states in the United States that have adopted electric choice, Ohio’s experience has been among the best. The full text of the PUCO Report is available on the NEM Website.

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