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April 26, 2002
Cantor Fitzgerald and Tradespark Elected to NEM Executive Committee

NEM is pleased to announce that Cantor Fitzgerald and Tradespark have been nominated to NEM's Executive Committee. Cantor Fitzgerald is a financial services conglomerate with operating units that are involved in a variety of market-based business initiatives. TradeSpark is the world's most comprehensive neutral exchange for energy traders. With TradeSpark's proven real time trading platform, you can solicit and execute trades with unprecedented speed, efficiency and cost-savings versus traditional voice-based trading. Harry Fry, Senior Managing Director, Cantor Fitzgerald, Robert Hayes, Chief Operating Officer, TradeSpark, and Jeff Bandman, Senior Vice President, Cantor Fitzgerald, and Senior Vice President, Corporate Development, eSpeed will represent Cantor Fitzgerald and Tradespark within NEM.

NEM Executive Committee Leadership Nominations Sought

The Leadership of the NEM Executive Committee is seeking nominations for the National, Regional and State Policy Chairs and Co-Chairs for the comming year. If you would like to volunteer for a leadership role or wish to nominate someone for such a role, please forward the name and position to headquarters at your ealiest convenience. All the nominations will be circulated prior to the Annual June 20 Membership Meeting and Conference, and a special meeting of the Executive Committee is being considered for the evening of June 19 to vote on the nominations at a location to be determined.

NEM Annual Membership Meeting and National Restructuring Conference

Senators, FERC, PUC and FTC Commissioners have confirmed for NEM's Annual Membership Meeting and National Restructuring Conference to be held June 20 and 21, 2002, at the Marriott Metro Center in Washington, DC. An updated agenda, registration form and electronic brochure is hotlinked here for your convenience. Please note that the discounted registration fee for the conference has been extended to May 3, 2002. We are planning the reception and would appreciate an early head count. Also there are only a limited number of rooms at our discounted rate of $139/night.

NEM-EEI Master Netting Agreement

A large turnout attended the initial drafting session for the NEM-EEI Master Netting Agreement (MNA). Many thanks to Chris Bernard and Marty Jo Rogers of Entergy-Koch for leading the NEM effort and hosting the meeting and to DeDe Russo, Vince Duane, Wade Hoefling and David Perlman for leading this effort. Comments on the current draft MNA are due May 8, 2002. A second draft will be circulated by May 13, 2002, and comments are to be submitted by May 21, 2002. A third draft will be presented to the NEM-EEI Drafting Committee for final comments, and a final version of the Master Netting Agreement will be rolled out on or about May 30, 2002, at a follow-up meeting in which the entire agreement will again be discussed in detail. The time and location of this meeting are to be determined. The full texts of the Draft Master Netting Agreement, Draft Cover Sheet, and Draft Collateral Annex are hotlinked here and available on the NEM Website.

CFTC NOPR on Commodity Futures Modernization Act

CFTC issued a NOPR to amend its rules implementing the Commodity Futures Modernization Act with respect to trading facilities and clearing organizations. The proposed rules provide that: 1) the exemptive period included in the definition of "dormant contract" be changed to the time following initial exchange certification or Commission approval; 2) when a registered entity that has become dormant wants to list or relist an initial product for trading, it must continue to satisfy the criteria for designation or registration; 3) the terms and conditions of products for which voluntary approval is sought will be made publicly available; 4) only exchange fees relating to delivery of an enumerated agricultural commodity should be subject to prior-approval requirements and all other fees should only be subject to the certification requirement; and 5) all changes to contract terms and conditions, except rules relating to margin levels, must be submitted to the Commission for prior approval. Comments on the NOPR are due June 25, 2002. The full text of the NOPR is available on the NEM Website.

NEM Comments Opposing EIA Gas Marketer Survey

NEM submitted comments opposing EIA's proposal to extend EIA Form 910 for three additional years and to increase the sample population beyond the five states currently covered by the Form. NEM continued to urge EIA to direct its reporting requirements to regulated distribution and transmission entities from which it is already collecting data, to only ask marketers to report on a voluntary basis, and to limit any marketer reporting to those states in which 25% of gas customers have migrated. NEM noted that imposition of the reporting requirements has already imposed onerous one-time and on-going compliance costs on marketers and that expanded use of the Form would only increase those costs. The full text of NEM's Comments is available on the NEM Website.

Staff Analysis and Recommendations on Standards of Conduct NOPR

Staff has issued an analysis and recommendations on the NOPR to consolidate standards of conduct and apply them uniformly to all regulated transmission providers. Staff recommends a number of modifications to the rulemaking as a result of comments received.

In response to concerns raised by NEM and other that the proposed definition of "energy affiliate" was too broad, Staff proposed the following definition:

"an affiliate of a transmission provider that (1) engages in or is involved in transmission transactions in U.S. energy or transmission markets; or (2) manages or controls transmission capacity of a transmission provider in U.S. energy or transmission markets; or (3) buys, sells, trades or administers natural gas or electric energy in U.S. energy or transmission markets; or (4) engages in financial transactions relating to the sale or transmission of natural gas or electric energy in U.S. energy or transmission markets. The definition of energy affiliate excludes (1) other affiliated regulated transmission providers; and (2) holding or service companies that do not engage in or are involved in transmission transactions in U.S. energy markets."

Staff also recommended: 1) requiring transmission providers to treat their bundled retail sales business as an energy affiliate although the sharing of non-transmission functions between transmission providers and energy affiliates should continue to be permitted, 2) the "automatic imputation rule" should be adopted with respect to information prohibitions for shared employees, 3) transmission providers and energy affiliates should be permitted to share operational information necessary to maintain the reliabiliy of the system, 4) the pre-existing standard of conduct exceptions permitting transportation function employees to buy and sell gas for operational reasons should be retained, and 5) transmission providers should be required to post discounts for transmission service at the conclusion of negotiations when the offer becomes binding.

A technical conference will be convened to discuss Staff's analysis and recommendations on May 21, 2002, at 9:30AM. The full text of Staff's Analysis is available on the NEM Website.

Standardized Generation Interconnection NOPR

FERC issued a NOPR on standardized generation interconnection setting forth a proposed standardized interconnection agreement and standardized interconnection procedures. The NOPR provides that: 1) transmission providers and affected third parties are responsible for coordinating and performing studies and upgrades to accommodate interconnection requests; 2) accelaration of interconnection construction is permitted so long as generators receive credits or are reimbursed by the requesting generator for the accelerated upgrades; 3) the NOPR will only be applicable when a generator interconnects to a transmission provider's transmission system or makes wholesale sales in interstate commerce at the transmission or distribution voltage level; 4) small generators should be responsible for all studies and upgrades needed to accommodate their facilities subject to an accelerated procedure; 5) the transmission provider and the transmission owner should be signatories to the interconnection agreement; and 6) interconnection service should be subject to the reciprocity requirements set forth in Order 888. The Commission requested comments on whether its current interconnection pricing policy should be retained pursuant to which all generation facilities, not just generator step-up transformers, would be removed from the transmission charge and directly assigned as sole use facilities. The Commission also requested comments on how to make the generator interconnection pricing adopted in this proceeding consistent with the locational marginal pricing methodology in the standard market design proceeding. Comments on the NOPR are due 45 days after publication in the Federal Register. The full text of the NOPR is available on the NEM Website.

NEM Brief on Competitive Metering

NEM and its member, IMServ, submitted a brief opposing a request to eliminate competitive metering in the state and to require the utilities to submit advanced meter deployment plans. NEM urged the Commission to affirm its commitment to competitive metering as a means to bring the benefits of real-time data collection and energy cost management to consumers. The full text of the NEM Brief is available on the NEM Website.

Detroit Edison Retail Access and Load Profiling Orders

Responding to a number of concerns voiced by NEM, the Commission has issued Orders on Detroit Edisons's retail access program and instituted a load profiling service proceeding. With respect to Detroit Edison's retail access program, the Commission ordered that customers should have two months from the date of enrollment to complete the installation of telemetry and that in the interim Detroit Edison should provide manual meter readings to these customers at no charge. The Commission also established a system use charge of $3.42/kW for all customers taking low volatage distribution service. The Commission ordered that the 45 day enrollment period should be based on calendar days as opposed to business days and moved provisions pertaining to marketer relationships from Detroit Edison's tariff to its supplier handbook.

The Commission also ordered the institution of a proceeding to address Detroit Edison's load profiling service. Detroit Edison must file a load profiling proposal by June 17, 2002, and a prehearing conference will be held on July 9, 2002, to establish a schedule for the case. The full texts of the Order on Detroit Edison's Retail Access Program and the Order on Load Profiling Service are available on the NEM Website.

Staff Report on Detroit Edison Customer Service Improvement Plan

Staff issued a report and recommendations on Detroit Edison's customer service improvement plan. Staff recommends that Detroit Edison implement first contact resolution for all customer problems, increased frequency and accuracy of actual meter reading, correction of improper bill responsibility assignment, independent third-party audit of the company's billing processes, expansion of the informal hearing process, and improved working relationship with the Commission's service quality staff. Comments on the report are due May 20, 2002. The full text of Staff's Report is available on the NEM Website. NEM members should forward their comments on the report to headquarters ASAP.

New Jersey
Basic Generation Service Meeting Agenda

Staff has released an agenda for the Basic Generation Service (BGS) meeting to be held May 3, 2002, at 9:30AM. The topic of the meeting is BGS pricing and structure issues. The full text of the Agenda is available on the NEM Website.

New York
ConEd and O&R Distributed Generation Pilot Programs

Pursuant to Commission Order, ConEd and O&R have each issued a Request for Information (RFI) for participation in their distributed generation pilot programs. The RFIs are meant to allow ConEd and O&R to prequalify potential bidders pending the release of RFPs on June 14, 2002. Responses to the RFIs are due May 24, 2002. The full texts of the ConEd RFI and the O&R RFI are available on the NEM Website. Additional information about the programs is available at and

Commission Order on ConEd Gas Joint Proposal

The Commission issued an Order approving the Joint Proposal in the ConEd gas proceeding. The Proposal provides for a $.24 per decatherm credit for retail choice customers. It also provides for a series of rate design changes including unbundling gas commodity and related supply costs from firm minimum charges and sales rates and modifications to the gas adjustment mechanism in order to facilitate customer comparison of marketer offerings. The full text of the Order is available on the NEM Website.

Working Group Formed to Implement Gas Supplier Rules

The Commission ordered that a working group be convened to address the implementation of the gas supplier rules. The first meeting of the group will be held on April 30, 2002, at 10AM in Room 1252 of the Commission's offices.

3333 K Street, N.W., Suite 425
Washington, D.C. 20007
Tel: (202) 333-3288     Fax: (202) 333-3266

© Copyright 2001 National Energy Marketers Association