June 8, 2001


 NEM Summer Policy Development Meeting

NEM Executive Committee members are reminded that the summer policy development meeting will be held June 28-29, 2001, at the Hotel Boulderado in Boulder, Colorado. Please call 1-800-433-4344 for our special rate. Rooms at the Historic Boulderado are very limited. Agenda items will include NEM's strategy for summer shortages, the development of, "National Guidelines for Implementing Distributed Generation and Related Services" and "National Guidelines to Implement Competitive Advanced Metering and Related Information Technology," strategies for Utility offerings of long term fixed prices, competitive services by tariff, and the next steps on National Energy Technology Policy development and implementation. A hotlink to register for the meeting is provided here and on the NEM Website for your convenience.

 NEM's Competitive Advanced Metering Guidelines

NEM is pleased to report that the draft, "National Guidelines to Implement Competitive Advanced Metering and Related Information Technology," has been reported out of the NEM Metering Policy Committee with unanimous support for approval by the Executive Committee at the upcoming June policy meeting. The document calls for immediate low-cost access to meters and information and (1) tax incentives for private investments to upgrade the metering and related technology infrastructure and (2) PBR for utilities for similar investments conditioned on competitive unbundling by that utility. If you would like to suggest any specific word changes, please offer your suggestions by Tuesday, June 12, 2001. NEM appreciates the input and cooperation of Emmett Kelly, Marguerite Bourgeois, Greg Lizak and Cody Graves in the development of this document. The full text of the Draft National Guidelines to Implement Competitive Advanced Metering and Related Information Technology is available on the NEM Website.

NEM's Distributed Generation Guidelines

NEM is holding a conference call today to discuss revisions to its draft, "National Guidelines for Implementing Distributed Generation and Related Services." Copies of the first draft are available upon request. A revised draft will be circulated to members for comments next week and presented to the Executive Committee for a vote at the upcoming June Policy meeting.

Federal Issues

 House and Senate Bills on Distributed Generation

Companion bills were introduced in the House (HR 1945) and Senate (S933) that would streamline interconnection for distributed generation technologies, including combined heat and power. The bills propose a uniform nationwide interconnection standard and require FERC to promulgate the standards within one year. The full text of HR1945 and S933 are available on the NEM Website.

 EIA Proposed Gas Supplier Reporting Requirements

EIA is requesting comments on "Surveys to Assess Interruptions of Natural Gas Supplies" for use in the possible event of natural gas supply or price emergencies during winter heating seasons through 2004. Comments are due July 30, 2001. The full text of the Notice Requesting Comments is available on the NEM Website.

 NEM Comments on Use of Radio Spectrum for AMR

NEM filed comments with the NTIA on the use of radio spectrum for AMR discussing the benefits of the use of AMR. NEM argued that in order to bring true price competition to the markets, consumers must be able to respond to price signals, and advanced metering is an important element in providing price responsive demand. The full text of NEM's Comments is available on the NEM Website.

 DOE Review of Energy Efficiency and Renewable Energy Programs

DOE will hold a series of public meetings to review its Energy Efficiency and Renewable Energy programs, including those for distributed energy resources and wind and solar technologies. DOE will also accept comments on the performance of the programs as well as suggestions for the future. Comments are due June 29, 2001. The full text of the DOE Announcement is available on the NEM Website.


 NEM-FERC Meeting

NEM's Federal and Wholesale Policy Committee met with FERC on June 1, 2001, to discuss seams and accessibility issues. A Detailed Report of the meeting is hotlinked here for members.

 RTO Interregional Coordination Conference

The Commission will convene a technical conference on RTO interregional coordination on June 19, 2001, at 10AM. NEM has filed a request to participate at the conference. The full text of the Notice of Technical Conference and NEM's Request to Participate are available on the NEM Website.

 FERC Approves PJM Load Response Program

The Commission approved PJM's Load Response Program to be in effect from June 1, 2001, to May 31, 2002. The Commission found that the emergency and economic options proposed by PJM were a reasonable way to address the lack of sufficient demand response in the market. NEM strongly supported this Program. The Commission ordered PJM to report on the effectiveness of the Program by December 28, 2001. The full text of the Order and NEM's Filing in Support is available on the NEM Website.

FERC Approves PJM Changes to Capacity Commitment Obligations and Deficiency Penalties

The Commission approved PJM's proposal to move from daily to seasonal capacity commitment periods and deficiency charges. The Commission found the longer-term capacity requirement and changes in capacity deficiency charges would encourage Load Serving Entities and capacity holders to contract in advance for adequate capacity over the summer season and discourage the delisting of capacity during the summer. NEM strongly opposed this proposal. The full text of the Order and NEM's Filing in Opposition are available on the NEM Website.

 ISOs to Develop Collaborative Scheduling System

NYISO, ISO-NE, IMO of Ontario, the NPCC, PJM, TransEnergie of Quebec, New Brunswick Power of the Maritimes, and Detroit Edison, have formed a group to design a "Collaborative Scheduling System" to permit buyers and sellers to go to any one market's website and schedule their wholesale energy transactions throughout the entire Northeast.

State Issues

New York

 Orders on Competitive Metering

In two Orders addressing the utilities' metering tariff filings and the Competitive Metering Manual, the Commission approved Staff's recommendations to: 1) uphold the established methodology for computing back-out credits; 2) allow customers to contract directly with metering service providers; 3) require utilities to file further tariff amendments with revised back out credits to comply with the Commission's orders to use long run avoided costs or embedded cost of service studies and include avoided customer care functions; and 4) revise aspects of the metering manual, including meter locking mechanisms, procedures for witnessing meter installations, and inconsistencies relative to theft of service conditions. The full text of the Order on Metering Manual and the Order on Metering Tariffs are available on NEM's Website.

 Billing Tariff Filings

NYSEG, ConEd and O&R filed billing tariffs as required by Commission Order to establish consolidated billing and payment processing services and to implement the Commission-ordered billing credits and charges. ConEd and O&R propose to implement account separation fees of $34.50 and $32.50, respectively, for separation of a dual service electric and gas account into two individual accounts. NYSEG asserts that its billing system cannot accommodate account splitting, and therefore it will not be offered. The full texts of the NYSEG Tariff Filing (Gas) and NYSEG Tariff Filing (Electric) are available on the NEM Website and the full texts of ConEd and O&R's filings are available from NEM headquarters.

Order on NFG Joint Proposal

The Commission approved NFG's proposed interim settlement providing that: 1) marketers will not need to demonstrate firm capacity upstream of designated liquid points; 2) the tolerance band for daily deliveries of natural gas to the city gate will be a minimum of 80% and no more than 120% of the customer's daily average normalized consumption for the month; 3) marketers must demonstrate firm capacity to meet customer group requirements at 62 heating degree days; and 4) marketers must demonstrate compliance with the Commission's 5 month firm upstream transportation requirements by July 1 of each year so long as the marketer's monthly compliance report is submitted by April 1. The full text of the Order is available on the NEM Website.

New Jersey

Orders on Basic Generation Service and Basic Gas Supply Service

The Board ordered the electric utilities to submit proposals to implement an RFP process for Basic Generation Service (BGS) during the period of August 1, 2002, to July 31, 2003. The Board ordered the following procedural schedule for consideration of the proposals: Utilities file proposals - June 29, 2001; Procedural conference - week of July 9; Discovery conferences - July 16-18, 2001; Discovery request deadline on EDC positions - July 25, 2001; Discovery response deadline on EDC positions - August 7, 2001; Filing of non-utility positions - August 17, 2001; Discovery conferences on non-utility positions - August 23-24, 2001; Discovery request deadline on non-utility positions - August 31, 2001; Discovery response deadline on non-utility positions; Public hearings - September 20, 21, 24, or 25, 2001; Final comments by all interested parties - October 5, 2001; and Reply comments by all interested parties - October 12, 2001. The full text of the Order is available on the NEM Website.

The Board also issued an Order establishing a procedural schedule to consider whether Basic Gas Supply Service (BGSS) should be made available on a competitive basis. The Order included a list of questions for comments to be filed by July 9, 2001. The Board also ordered Staff to form a working group to consider BGSS and identify areas of consensus. Staff is to file a Report on the group's progress by August 15, 2001. The full text of the Order is available on the NEM Website.


 NEM Brief in Nicor Proceeding

NEM filed a Brief in the Nicor proceeding opposing the recommendation that account agents should separately state supply charges and Nicor Gas' delivery costs on bills to customers. NEM argued that such requirements would hamper marketers' ability to offer innovative products and services and that consumers should be able to choose what information they receive. The full text of NEM's Brief is available on the NEM Website.


 NEM Comments on Competitive Metering

NEM has filed comments on the Competitive Metering Working Group Report arguing that the Commission should immediately unbundle the fully embedded monopoly costs associated with metering and related information technology functions and make these costs known to consumers and the competitive marketplace. NEM also recommended that the Commission should provide shopping credits to consumers equal to the fully embedded costs of all metering services and related information technologies including ownership, installation, servicing of equipment, maintenance, testing, reading, data management, validation, editing, estimations, pulse output transmission via Internet and billing. The full text of NEM's Comments is available on the NEM Website.

 Unfair Trade Practice Alleged Against PEPCO Energy Services (PES)

Washington Gas Energy Services (WGES) has petitioned the Commission to order PES to stop a cash payment practice used to induce customers to continue taking standard offer service from its parent, PEPCO, while PES retains the option to sell power to the customers if market conditions permit, a practice WGES asserts is unfair to competitive electric suppliers. The full text of the Petition is available from NEM headquarters.

 Allegheny Power Emissions Report

Allegheny Power filed its Annual Emissions Disclosure Report including emissions data from Allegheny Energy- owned generation facilities. The full text of the Emissions Report is available from NEM headquarters.

Southern Maryland Electric Cooperative Revised Tariff

Southern Maryland Electric Cooperative filed a revised demand-side management cost recovery factor tariff schedule. The company proposes to incorporate DSM costs corresponding to the 2001 rate year and true-up the difference between last year's projected and actual cost recovery. The tariff, effective July 1, 2001, is available from NEM headquarters.


 Commission Seeks Comments on Electric Supplier Disclosure and Environmental Reporting Requirements

The Commission issued an Order seeking comments on proposed standards for disclosure of information by electric service providers (ESPs) to customers as well as the manner in which ESPs must inform customers about environmental characteristics of their electricity products. Initial comments on the proposals are due July 13, 2001, and reply comments are due July 27, 2001. The full texts of the Order, Exhibit A - ESP Disclosure Standards, and Exhibit B - Environmental Characteristics Reporting Requirements are available on the NEM Website.


 Competitive Metering Working Group

The initial meeting of the Competitive Metering Working Group will be held June 13, 2001, at 9AM in the third floor training room of the Commission's offices.

 Order on Delmarva Participation in Regional Transmission Entity

The Commission has issued an order requesting comments on whether Delmarva's participation in PJM constitutes compliance with state restructuring law. Comments are due July 27, 2001. The full text of the Order is available from headquarters.