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January 21, 2011

N.Y. PSC Approves Monthly Balancing at KEDLI
The New York PSC approved KeySpan Energy Delivery Long Island's tariff (06-G-1186) to implement an Interim Monthly Balancing Transportation Program for its non-firm transportation customers receiving service under Service Classification No. 7 (Interruptible Transportation Service) and Service Classification No. 13 (Temperature Controlled Transportation Service).

N.Y. PSC Votes on NiMo Electric Rate Case
The New York PSC yesterday voted on a final order in Niagara Mohawk's electric rate case, but did not release a written order (10-E-0050).  Absent a written order, the PSC's final decision on the more detailed retail access aspects of the case were unknown.  As only noted in Matters, two ALJs had recommended that PSC deny Niagara Mohawk's proposal to use a true-up mechanism for commodity-related uncollectibles and to true up the Purchase of Receivables discount rate to reflect the actual uncollectible experience (11/18).  The ALJs recommended denying, however, the request from ESCOs to remove the current all-in/all-out requirement (by customer grouping) imposed on ESCOs participating in POR.

PUCT Discusses CenterPoint Rate Case, Withholds Action
The PUCT yesterday discussed various aspects of a proposed order in CenterPoint Energy's base rate case, but left a final order to a subsequent meeting (38339).  The Commission did not discuss in detail the major retail market aspects of the proposed decision, previously discussed by Matters in our 12/6 story.  As only noted in Matters, two ALJs have recommended that the PUCT deny CenterPoint Energy's alternative cost recovery mechanism which would have significantly raised the fixed customer charge for residential customers.

AEP to Accelerate Constriction of Dresden Plant
AEP said yesterday that it will accelerate the construction process of a natural gas-fired power plant near Dresden, Ohio.  The partially constructed plant was purchased in 2007 by AEP through its AEP Generating Company subsidiary from Dresden Energy LLC, a subsidiary of Dominion.  AEP expects the plant to be operational during the first quarter of 2012.  When completed, the Dresden plant will be a nominal 580-megawatt natural gas-fired combined-cycle plant.

TXU Launches Website to Facilitate Donation of Rewards
TXU Energy has launched a new website, TXU Energy Local Impact, to facilitate the ability of customers to donate some or all of their cash rewards earned through TXU's products to various charities serving their local communities.  TXU said that it will distribute more than $30 million, via Visa prepaid cards, in cash back rewards for service in 2010.

World Energy Solutions Brokers Tedeschi Load
World Energy Solutions, Inc. said it brokered the load of 157 Tedeschi Food Shops in Massachusetts for the period February 1, 2011 through January 31, 2014.  World Energy Solutions would not disclose winning supplier(s) but said its auctions for the load were liquid events attracting more than five participating suppliers.

Texas Public Policy Foundation Releases Energy Report
The Texas Public Policy Foundation released a report on Texas' energy economy and policies, titled Texas Energy and the Energy of Texas, which does not address any retail market issues, but does oppose subsidies for specific power generation fuels, such as natural gas, and concludes that, "states that have attempted to intervene in energy markets are saddled with the nation's highest energy prices."

FERC Issues Frequency Response Study
FERC issued for public comment a study on frequency response.  The purpose of the study is not to determine how much of any particular resource can be reliably integrated into an interconnection, but to develop an objective methodology to evaluate the reliability impacts of varying resource mixes including increased amounts of renewable resources, FERC said.

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