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December 2, 2010

Md. PSC to Further Examine Columbia RM 35 Costs, Implementation
The Maryland PSC directed Columbia Gas to present additional details regarding various costs of implementing several provisions of RM 35, including purchase of receivables and a 12-day enrollment timeline, after Columbia reported that recovering all such costs through the discount rate as directed by the PSC would result in a POR discount rate of 28%.  The PSC held Columbia's application for rehearing of several cost recovery issues in abeyance (10/22), and suspended a compliance tariff, until Columbia presented additional cost data which will permit the Commission to consider whether to continue with implementation of the more costly RM 35 items, whether to grant Columbia a waiver of certain items, or whether to devise an alternative method of cost recovery (but which would still recover all costs from participating choice customers and not from distribution customers).  A period longer than two years for amortizing implementation costs was one solution discussed to make the costs more palatable.

PUCT Severs Competitive Generation Service Issues at Entergy
The PUCT agreed to Entergy Texas' unopposed motion to sever issues related to Competitive Generation Service (CGS) from the remaining settled issues in Docket 37744, to allow parties additional time to attempt to reach a resolution on the issues (see 12/1).

Nodal Implementation Runs Smoothly
Retail suppliers reported a smooth launch to the ERCOT nodal market yesterday.  Hub to load zone spreads were only pennies per megawatt-hour in most areas, though the spread briefly rose as high as $4/MWh in the west for a few intervals yesterday.

PUCT Sets Interest Rates
The PUCT yesterday set the following interest rates applicable to monies owed to retail electric customers: 0.28% interest for over-billings, and 0.19% interest for deposits.

Virtual Energy LLC Changes Name to Smart Grid Solutions LLC
New York-based demand response provider Virtual Energy LLC has changed its name to Smart Grid Solutions LLC to reflect its offerings and services under an evolving energy market.  Smart Grid Solutions LLC offers demand response and related services in the New York ISO and PJM.  Smart Grid Solutions LLC is led by Robert Kreppel.

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