NEM supports the Commission authority to limit “utility services” to functions that only a utility can provide. It is completely correct to determine that a voluntary contract to serve is a binding “obligation” to serve. By separating the obligation to serve into utility delivery services and ESCO-commodity services, the Commission potentially enhances the reliability of both energy supply as well as delivery. NEM also supports the Commission's finding that: a) market-based rates are just and reasonable, and b) qualified suppliers may reliably provide commodity functions at just and reasonable rates. A copy of the comments is hotlinked here for your review.

The Commission voted to approve a policy calling for 25% of electricity to be generated from renewable resources by 2013, a 6% increase from the current 19.3%. The program will require the voluntary green market to contribute 1% of the 25%. The program divides resources into two categories: 1) "main tier" generation, including larger electric generation facilities like hydroelectric and 2) "customer-sited tier" generation, including smaller, on-site generation such as fuel cells. A non-bypassable volumetric charge on the delivery portion of electric bills, beginning in the fourth quarter of 2005, will fund the development of eligible resources through competitive selection of programs from both tiers. This competitive procurement program will be administered by NYSERDA. The program will commence on January 1, 2006 and will be reviewed in 2009. The full text of the release is available on the NEM web site. The order, when made available, will also be available on the NEM web site.

As urged by NEM, the Commission approved ConEd's gas settlement that incorporated many of the migration strategies outlined in the Commission's recently released Policy Statements, such as purchase of receivables. The plan also requires ConEd to institute a marketer referral program akin to O&R's PowerSwitch, use an ESCO ombudsman and conduct a Market Match and Market Expo program. ConEd's rate plans will become effective on October 1, 2004. The full text of the release is available on the NEM web site. The Order, when released, will also be available on the NEM web site.

NEM filed comments supporting RG&E's plan to purchase receivables without recourse. Under RG&E's plan, the company would purchase receivables effective January 1, 2005 through December 1, 2008. Discount rates would be set at .61% and 1.99% for electric and gas, respectively. If a customer, either residential or non-residential, failed to make payment on a consolidated bill, under its plan, RG&E would retain the authority to disconnect delivery and competitive supplier service. NEM supports purchase of receivables programs as a first step in a transitional market design for New York utilities and has recommended statewide adoption of the O&R model. The full text of the comments is available on the NEM web site.

The Gas Operations and Logistics Support Working Group will meet to discuss the reverse migration rider. The Working Group will first consider whether the rider should even be implemented, in light of the potential customer confusion. If the group reaches consensus to go forward with the rider, specific discussions on the draft customer notices and customer education effort will take place. The meeting wiill be held October 5, 2004 at 10:00 a.m. at the Commission offices.

Dominion Virginia will be seeking competitive bids to supply electricity to geographic sub-blocks of retail customers. Bids must provide for service beginning in December 2004 through the Customer's January 2006 meter reading date. The three geographic sub-blocks are Northern Virginia, Central/Western Virginia and Eastern Virginia. Each geographic area will consist of two customer sub-blocks - 1) Residential Service and Worship Site Service and 2) non-residential GS-1 and GS-2 customers.

Bids will be sought through a two-step process, consisting first of a Request for Qualifications (RFQ) followed by the solicitation of competitive bids from those entities duly qualified. Suppliers previously qualified do not need to respond to the RFQ. Responses to the RFQ are due either by email (Supplier_Relations@dom.com and tfaherty@scc.state.va.us) or mail by October 12, 2004. The full text of the RFQ is available on the NEM web site.

Metromedia Energy filed a complaint seeking an investigation into the financial security requirement imposed upon it by Washington Gas Light. MME argued that the requirement violated competitive access rules because the amount of security did not bear a reasonable relationship to risk assumed by WGL. In his report, the Hearing Examiner recommended that WGL be allowed to collect an interim financial security deposit until the Commission approves its permanent security requirement. WGL requested an interim requirement consisting of a 60-day delivery risk coverage factor as well as the highest NYMEX price for 2004-2005 heating season as published on or about August 31, 2004. The Hearing Examiner recommended a 15-day delivery risk coverage factor and a forecast price set on or around September 30, 2004. While allowing WGL's request for the price component of the delivery risk to stand, the Commission modified the delivery risk coverage factor to 15 days. The Commission adopted the Hearing Examiner's recommendation that the injunction be extended until the Commission can approve WGL's financial security requirement. The full text of the order is available on the NEM web site.