September 8, 2000

Announcements

 

 Draft Agenda for October 30 NEM Executive Committee Meeting is attached and Hotlinked Here.

The Executive Committee will discuss, debate and vote on the National Policy Recommendations of the Internet/Technology Policy Development Teams, NEM endorsement of the final Chapters of the Uniform Business Practices, Competitive Metering and establishment of NEM standards for Best Industry Practices and possible NEM Certification.

 NEM Files Opposition to New Jersey Supplier Fees on Legal, Regulatory and Public Policy Grounds.

If Supplier Fees are passed on to consumers who switch to competitive suppliers, they operate as a switching fee and would therefore be prohibited by statute. If Supplier Fees are not passed on to consumers they operate as a substantial and confiscatory net profits tax on competitive suppliers and vendors, the legal, regulatory and public policy propriety of which requires a formal rulemaking and a full-blown cost of service study. A copy of NEM's opposition is hotlinked here and available on the NEM website. A copy of an article on the Supplier fee is hotlinked here and also available on the NEM website.

 NEM Billing and Technology Policy Development Teams Met with EIA about $100 Million in Impacts of New Reporting Form

NEM's Policy Team identified more than $50 million dollars in initial costs and ongoing yearly costs in excess of $100 million that will be imposed on marketers and billers by the new EIA reporting form. Final NEM Comments will be filed with EIA next week. NEM recommends use of default rates instead of imposing costly new reporting burdens on marketers

 NEM Members to be Briefed by EIA on Insert Heading

The Electric Power Division within the EIA has requested input from NEM about its restructuring of electric data collection efforts including data requirements, forms design, collection/processing, and data dissemination. NEM members who want to participate in the briefing should contact NEM headquarters.

FERC

 Order Clarifying Temporary Bid Caps

In response to the request of the NYISO, the Commission has issued an Order clarifying that sink price bids in the day-ahead market should be subject to the $1,000/MWh temporary cap because such bids could, during times of constraint, set the locational based marginal price. The full text of the Order is available from NEM headquarters.

 

State Issues

New York

 Order Instituting National Fuel Gas (NFG) Rate Proceeding

The Commission has ordered the institution of a proceeding to examine NFG's rates, charges, rules and regulations to examine opportunities to reduce rates and give customers a return of money currently earning interest in deferred accounts. NFG is required to file a statement agreeing to make its gas rates and charges temporary subject to a refund effective October 1, 2000, or NFG must demonstrate why its gas rates and charges should not be reduced on a temporary basis. If NFG doesn't agree to make its rates temporary, it must file an evidentiary presentation and other parties will have an opportunity to respond. The full text of the Order Instituting an NFG Rate Proceeding is available on the NEM Website. NEM plans to intervene in this proceeding.

 PSC Denies Utilities' Petition on Billing Choice Order

The PSC ordered the utilities to comply with its Billing Choice Order that directed the utilities to accommodate the use of combined, single bills from either a utility or an ESCO. The utilities must file competitive billing tariffs to be effective February 1, 2000. The full text of the Order is available on the NEM Website.

 Customer Billing Arrangement Stakeholders' Meeting

Staff has scheduled a stakeholders' meeting on September 25, 2000 to coordinate the efforts of utilities to provide unified customer billing arrangements. The full text of the Meeting Notice is available on the NEM website.

 Intervenors Oppose NYSEG's Request for Rehearing in Back-Out Rate Proceeding

The full text of the Response is available from NEM headquarters.

 NYISO Banking Instructions for November Re-Bills

The NYISO has issued banking instructions for fund transfers resulting from November 1999 re-bill and true-up billings. The full text of the instructions is available on the NEM Website.

 Open Session of the New York State Reliability Council (NYSRC) Installed Capacity (ICAP) Working Group

An Open Session of the NYSRC ICAP Working Group Meeting is scheduled for September 12, 2000, starting at 11:30 A.M. Those wishing to participate on a "listen-only" basis can call (954) 797-1944, and enter Participant Code 576425.

 NYSERDA Standard Performance Contract (SPC) Update

Year-3 of the SPC Program began July 1, 2000. There are 42 ESCOs participating in the program. Year-3 SPC Activity includes 15 projects and incentives of $4,286,406. The SPC Program to date includes 121 projects with incentives of $33,547,105. Year-3 applications are being accepted.

 

New Jersey

 NEM Files Opposition to New Jersey Supplier Fees on Legal, Regulatory and Public Policy Grounds.

If Supplier Fees are passed on to consumers who switch to competitive suppliers, they operate as a switching fee and would therefore be prohibited by statute. If Supplier Fees are not passed on to consumers, they operate as a substantial and confiscatory net profits tax on competitive suppliers and vendors, the legal, regulatory and public policy propriety of which requires a formal rulemaking and a full-blown cost of service study. Non-NEM members are encouraged to contact headquarters to coordinate marketer advocacy in this matter. A copy of NEM's opposition is hotlinked here and available on the NEM website. A copy of an article on the Supplier fee is hotlinked here and also available on the NEM website.

 Order on Internet Enrollment

The Board has issued an Order directing the implementation of a Pilot Internet Enrollment Program on September 1, 2000. Staff shall conduct a six-month review of program no later than June 1, 2001. The full text of the Order on Internet Enrollment is available on the NEM Website.

 Order on EDI Processes

The Board has adopted the Electronic Data Exchange and Protocol Process Flow for Electric, Version 1.2, dated June 9, 1999, and Electronic Data Exchange and Protocol Process Flows for Natural Gas Deregulation in the State of New Jersey, Version 1.4, dated August 15, 2000, for use in the electric and natural gas industries. The Board directed that the EDI documents should be made available for Board review at least once a year commencing with September 2001. The full text of the Board's Order and the EDI Documents will be posted on the NEM Website when made available electronically.

Pennsylvania

 PFG Gas and North Penn Gas Response to Consumer Advocate Comments on Retail and Supplier Tariffs

PFG Gas and North Penn Gas have filed a response to the comments of Consumer Advocate generally accepting Consumer Advocate's suggestions with respect to its draft Retail and Supplier Tariffs. The full text of the Response of PFG Gas and North Penn Gas as well as the Consumer Advocate's Comments is available on the NEM Website.

 Consumer Advocate Files Comments on UGI Compliance Filing

The Consumer Advocate filed comments on UGI's compliance filing maintaining that:

  • A one year minimum term for a standard service contract should be eliminated.

  • UGI should be required to set forth its creditworthiness review process and procedures in its Supplier Tariff.

  • UGI should not require a credit review if a choice supplier has obtained a license from the PA PUC within one year.

  • UGI should add language to its tariff to make clear that it will issue a mailing offering customers two options to prevent the release of customer specific information to choice suppliers, and that UGI will not release a customer's telephone number to choice suppliers.

The full text of the Consumer Advocate's Comments is available on the NEM Website.

 

Ohio

 Commission Approves CG&E Transition Plan and Stipulations

The Commission has issued an Order approving CG&E's Electric Transition Plan and Stipulations which provides that:

  • The shopping credit for residential rate customers on the bills of switching customers for the first 20 percent of the load per class for the calendar years 2001-2005 will be 5.0000 cents/kWh. The shopping credit after 20 percent of the load per class switches for the calendar years 2001-2005 will be 3.9407 cents/kWh. For the calendars years 2006-08 all residential customers will pay a Regulatory Transition Charge (RTC) rider of 0.6114 cents/kWh. Residential customers will pay no RTC after December 31, 2008.

  • CG&E will waive the switching fee for the first 20 percent of residential customers that switch purchase of generation supply to a certified supplier during the MDP.

  • CG&E will not end the MDP for residential customers prior to December 31, 2005.

  • CG&E may end the MDP for all customer classes, except for the residential class, when 20 percent of the load of such class switches the purchase of its generation supply to a certified supplier.

  • CG&E's exempt wholesale generator (EWG) is prohibited from selling power to an affiliate for resale at retail in CG&E's service territory, except through CG&E's requirements commodity service agreement (RCSA) and is prohibited from selling to an affiliate certified supplier on more favorable prices or terms than CG&E sells to a non-affiliate certified supplier.

The full text of the Commission's Order Approving CG&E's Transition Plan and Stipulations is available on the NEM Website.

 FirstEnergy Filing on Alliance Regional Transmission Organization (RTO)

FirstEnergy and its subsidiary, American Transmission Systems Inc. (ATSI), have filed with FERC, in compliance with its Ohio Commission-approved Stipulation, to address reciprocity and interface/seams issues. Said filing is only to take effect if the Alliance RTO does not submit a filing. The FirstEnergy filing provides for the waiver of transmission charges in defined circumstances. The full text of the FirstEnergy filing is available on the NEM Website as follows:

The full text of the Stipulation and Recommendation will be posted on the NEM Website when made available electronically.

 Commission Approves Universal Service Fund (USF) and Energy Efficiency Revolving Loan Fund (EERLF) Rider Rates

The full text of the Order Approving the USF and EERLF Rider Rates is available on the NEM Website.

 Order on USF Riders

The Commission has ordered the utilities to file amended tariffs setting forth a USF rider to be effective September 1, 2000. The full text of the Order is available on the NEM Website.

 Order in Electronic Date Exchange Standards and Uniform Business Practices (UBP) Proceeding

The Commission ordered as follows in the Electronic Date Exchange/UBP Proceeding:

  • A utility shall not be permitted to require minimum stays for residential and small commercial customers when said customers opt-out of a government aggregation program or where a supplier default exists.

  • The "first year exemption" approach, by which customers are allowed to return to standard service without penalty anytime during the first year of the market development period, is the uniform minimum stay requirement for residential and small commercial customers returning to standard service.

  • Minimum stays become effective for residential and small commercial customers beginning May 16, 2002.

  • An Electric Distribution Utility (EDU) may switch any customer with a Competitive Retail Electric Service (CRES) billing arrearage of more than 60 days back to the utility's standard service and not allow said customer to shop until the arrearage is paid.

The full text of the Commission's Order is available on the NEM Website.

 

Georgia

 Natural Gas Marketer Billing Practices NOPR

The Commission has issued a NOPR to consider rules governing service quality for billing by natural gas marketers of their customers. The proposed rule provides that:

  • Firm customers are not liable for charges from a marketer that are not sent within ninety days after the marketer receives a meter reading from the distribution company.

  • Bills rendered must be ninety percent correct as they apply to the meter reading for the period in question.

  • Bills rendered must clearly identify the period of time for which the bill is being assessed, the cost per therm for the specific quantity of natural gas used by the comsumer, the interstate capacity charge assessed, the base charge being collected by the distribution company, the customer service charge imposed by the marketer, and any credit or balance owed to the customer.

  • The Commission may revoke, suspend, or limit a marketer's certificate if the Commission finds that the marketer has repeatedly or willfully failed to comply with billing service quality standards.

Comments on the NOPR are due by October 10, 2000. The full text of the Natural Gas Marketer Billing Practices NOPR is available on the NEM Website.

 

Maryland

 Maryland Energy Administration and Department of Natural Resources Submit Comments on Conservation Programs

The Comments offer programs to accommodate cost-effective conservation and energy efficiency consistent with a market-based approach. The programs suggested are as follows:

  • Informational programs to facilitate residential and other customer decision-making and improve market share of energy efficient appliances.

  • Programs to lower the initial cost differential between energy efficient and standard appliances for end users and homebuilders.

  • A program to encourage construction of energy efficient new homes and renovations via monetary incentives, marketing and technical support, and certification.

  • A pilot program for large commercial, industrial and institutional customers utilizing a competitive bidding process for energy service companies to propose specific conservation measures to be implemented.

The full text of the Comments of Maryland Energy Administration and Department of Natural Resources on Conservation Programs is available from NEM headquarters.

 Demand Side Management Meeting

Staff has scheduled a meeting for September 13, 2000, at the Commission's offices to discuss Demand Side Management proposals that were filed.

California

 Rate Ceiling, and Power Plant Certification Bills Signed by Governor and Reserve Fund Bill Passes Both Houses

Governor Davis signed the following rate ceiling and power plant certification bills into law on September 6, 2000:

  • AB 265 requires the commission to establish a ceiling of six and five-tenth cents ($.065) per kilowatt hour on the energy component of electric bills for residential, small commercial, and street lighting customers of the SDG&E, through December 31, 2002, retroactive to June 1, 2000. This ceiling may be extended through December 2003.

  • AB 970 requires the Commission to adopt an expedited process for final certification of thermal power plants and related facilities within six months of the filing of an application for certification.

Both Houses have passed the following reserve fund measure that awaits Governor Davis's signature:

  • AB 1156 requires the Controller to establish an Electricity Ratepayer Relief Subaccount in the sum of $150,000,000 to be used by the Commission to reduce the adverse impact of high-cost wholesale energy purchases on ratepayers if the rate ceiling established by AB 265 is in effect, the Commission determines that a shortfall in the Transition Cost Balancing Account would result in a ratepayer surcharge greater than 10%, and the electricity rates were directly linked to Power Exchange costs.

The full text of AB 265, AB 970, and AB 1156 are available on the NEM Website.