September 15, 2000


 NEM Urges EIA to Rescind Proposed Form

NEM has filed a legal challenge to EIA's Proposed Gas Biller Survey arguing that the Survey exceeds EIA's statutory authority and will have impacts of over $100 million dollars on the U.S. economy. The full text of NEM's Comments is available on the NEM Website.

 Restructuring Today Article on NJ Supplier Fee Proceeding

The article discusses NEM's request to the NJ BPU to issue a NOPR to determine the legal and regulatory basis for the proposed Supplier Fees. The full text of the Restructuring Today article is available on the NEM Website.

 Draft NEM Policy Statement on Advanced Metering and UBP Metering Section Mark-Up

Emmett Kelly, the Co-Chair of the NEM Metering Policy Development Team, has formulated a draft statement of NEM policy recommendations on advanced metering and has marked-up the metering section of the UBP document. NEM members are asked to review the policy recommendations and the marked-up version of the metering section of the UBP and to submit comments to headquarters ASAP. The full text of the Draft Policy Recommendations and the Marked-Up Version of the UBP Metering Section are available on the NEM Website.

 Petroleum Risk Manager Opportunity

NEM received an inquiry about a Petroleum Risk Manager position at a Midwest marketing company. Please contact headquarters if you are interested in being referred for this position.


Federal Issues

 Government Reform and Oversight Committee Energy Hearings

The Government Reform and Oversight Committee will hold hearings on September 20 and 21, 2000, beginning at 1:00PM on both days. The subject of the hearings will be energy issues - electricity, natural gas, heating oil, gasoline prices, etc. The first day will focus on the private sector and industry, and the second day will focus on government witnesses.

 House Subcommittee Hearing on California Restructuring

The Energy & Power Subcommittee of the House Commerce Committee held a San Diego field hearing about electric industry restructuring and the California market. Chairman Hoecker of FERC testified at the hearing that he believes the California situation is a result of imbalance in supply and demand. Chairman Hoecker suggested that California must encourage the siting of new generation and transmission facilities and that the lack of federal restructuring legislation has chilled new investment. The full text of Chairman Hoecker's comments is available on the NEM Website.



 Member Systems File Revised Tariff Sheets

The Member Systems have filed revised tariff sheets requested to be effective September 1, 2000, consistent with their Stipulation and the Commission's Order. The full text of the documents filed by the Member Systems are available on the NEM Website as follows:

 NYISO Submits Corrected Compliance Filing

The NYISO submitted a request to file revised tariff sheets addressing problems in the 10 minute non-synchronized reserve portion of the market and to file a corrected version of its compliance filing and report incorporating the revised tariff sheets. The following documents filed by the NYISO are available on the NEM Website:


State Issues

New York

 NFG Rate Proceeding

Martha Duggan at Hess has prepared an excellent analysis of the issues in the NFG case. Marketers with an interest in this case should contact headquarters ASAP.

The ALJ in the NFG rate proceeding has established the following procedural schedule:

  • NFG must file evidentiary submissions by September 20, 2000.

  • Responses to NFG's submissions are due October 5, 2000.

  • Hearings to examine submissions will take place October 10, 2000.

The full text of the Ruling Establishing Procedural Schedule is available on the NEM Website.

 Draft Settlement Agreement and Business Incentive Rate Proposal in ConEd Electric Proceeding

An initial draft settlement agreement and business incentive rate proposal have been prepared in the ConEd electric proceeding. Due to confidentiality concerns, NEM members that wish to review the agreement and the business incentive rate proposal should contact headquarters.

 Suspension of Litigation Schedule in NYSEG Back-Out Rate Proceeding

The litigation schedule in the NYSEG back-out rate proceeding requiring NYSEG to file its comprehensive case on September 14, 2000, has been suspended pending Commission review of NYSEG's Petition for Rehearing. The full text of the Notice Suspending the Litigation Schedule is available on the NEM Website.

 NYISO Re-Bill and True-Up Procedures

The NYISO has issued the following re-bill and true-up documents which are available on the NEM Website:


New Jersey

 GPU Energy Filing in Supplier Fee Proceeding

GPU Energy has filed a letter requesting that if the supplier fee proceeding is broken into four separate dockets, that GPU Energy be listed as a participant in the proceedings regarding Rockland Electric, Conectiv and PSE&G. The full text of GPU's letter is available on the NEM Website.



 PECO Files Preliminary Transition Cost Recovery Reconciliation

PECO has filed its preliminary Transition Cost Recovery Reconciliation for Year 2 (2000). The following documents included in the filing are available on the NEM Website:

The exhibits setting forth the Amortization of Transition Cost by Rate Class - per Settlement; Development of Transition Cost Recovery Revenue Requirement for Year 3 (2000), and Proof of Revenue Calculations for New 2001 Rates will be posted on the NEM Website when made available electronically.

 Provider of Last Resort (POLR)/Supplier of Last Resort (SOLR) Workgroups

Staff has requested that parties in the POLR/SOLR proceeding submit 2-3 page position papers addressing the definition and scope of the provider/supplier of last resort. The position papers are due September 26, 2000. In addition to the NEM Default Document, NEM members are working on a specific proposal for Pennsylvania.

 Commission Approves Metropolitan Edison and Penelec Reports

The Commission has approved the Bureau of Audits' reports on Metropolitan Edison and Penelec's Non-Utility Generation related recovery of stranded costs through their competitive transition charges. The full text of the Commission's Order Approving the Reports is on the NEM Website.



 Commission Requests Default Service Comments

The Commission has issued a Notice directing interested parties to submit written comments on the status of the provision of default service for electricity on or before January 4, 2002. The full text of the Notice is available on the NEM Website.

 Staff Recommendation on EDI Status Reports

Staff has filed a letter with the Commission suggesting that biweekly EDI status reports from the utilities are not necessary after the fourth test batch. Staff would have the utilities notify the Commission and Staff of ongoing testing efforts. The full text of Staff's Letter on EDI Status Reports is available from NEM headquarters.

 Pepco Submits Fifteenth Status Report on EDI

In its fifteenth status report on EDI, Pepco reports that testing of batch four suppliers is underway. Also, as of September 5, 2000, Pepco successfully processed production enrollment transactions from three licensed suppliers.

 Demand Side Management Meeting

The meeting to discuss demand side management proposals has been rescheduled from September 13, 2000, to September 26, 2000, at the Commission's offices.



 Appellate Court Affirms Commission Adoption of Rules to Prevent Utility Discrimination Against Electric Service Providers

An Illinois Appellate Court has affirmed the Commission's adoption of rules on non-discrimination in affiliate transactions for electric utilities to implement the Electric Service Customer Choice and Rate Relief Law. NEM had significant input on these rules. The full text of the Rules on Non-Discrimination in Affiliate Transactions for Electric Utilities and the Appellate Court's Order Affirming the Rules are available on the NEM Website.



 Comments in Metering, Billing and Information Services (MBIS) Proceeding

The following reply comments filed with the Commission in the MBIS proceeding are available on the NEM Website:



 Request for Bids for Standard Offer Service

The PUC will issue a Request for Bids on October 2, 2000, for standard offer service for customers of Central Maine Power, Bangor Hydro-Electric, and Maine Public Service Company for terms beginning March 1, 2001. This request for bids is subsequent to the PUC's recent Order amending its standard offer service rule. The amendments included:

  • Removing the requirement that seasonally differentiated rates be compatible with the utility's rate structure;

  • Increasing the opt-out fee to equal a customer's two highest standard offer bills, applying the fee only when the customer takes standard offer service in the summer months, and allowing customers to re-enter the competitive market without paying the opt-out fee by remaining on the standard offer for a shorter period of time.

  • Revising the required financial capability amount so as not to be tied to actual bid prices but rather $0.01 per kilowatt-hour multiplied by the appropriate billing units of the standard offer class as specified in the request for bids.

  • Allowing a corporate guarantee to be provided by the standard offer provider's wholesale supplier or an affiliate of the wholesale provider and lowering the debt-rating criterion.

The full text of the Order Amending the Standard Offer Service Rule and the Standard Offer Service Rule are available on the NEM Website.