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December 16, 2010

Md. PSC Eliminates Minimum Stay in BGE Gas Tariff
The Maryland PSC approved Baltimore Gas & Electric's revisions to its Gas Service Tariff to remove a provision from Rate Schedules C and D that required customers to remain with a supplier for at least three months prior to switching to another supplier (11/12).


Smitherman Recommends ERCOT Investigate Potential Retirements due to EPA Rules
Citing reports from NERC, the Brattle Group, and Credit Suisse estimating retirements of 5-13 GW of coal-fired generation facilities in ERCOT due to various new EPA proposed rules, PUCT Chairman Barry Smitherman would like ERCOT to evaluate the potential impacts of the EPA rules on generation facilities in ERCOT and the potential effects on generation adequacy, reliability, and prices.  Smitherman's recommendation will be discussed at today's open meeting.


Smitherman Drafts Legislative Recommendations on Electric Vehicles
PUCT Chairman Barry Smitherman has suggested revisions to the draft legislative recommendations in the Scope of Competition report to suggest that the Legislature, "may wish to provide additional guidance to foster further development of PEVs [Plug-in Electric Vehicles] as a competitive service."  The draft recommendations developed by Staff were provided to Commissioners under separate cover and not included in the draft report previously released.  Specifically, Smitherman recommended adding the following language regarding PEVs:  "The Commission notes that as an emerging technology, development of plug-in electric vehicles (PEVs) was not contemplated when the Public Utility Regulatory Act was adopted, and therefore there is no mention of PEVs in PURA.  The state policy established in PURA 39.001 (d) is that regulatory authorities shall 'authorize or order competitive rather than regulatory methods ... and shall adopt rules and issue orders that are both practical and limited so as to impose the least impact on competition.'  Therefore, the Commission believes that even though PURA is silent on PEVs, the Commission has ample regulatory authority and policy guidance to deal with issues that arise concerning EVs and their role within the Texas market structure.  Nevertheless, the Legislature may wish to provide additional guidance to foster further development of PEVs as a competitive service, as well as consider measures to promote the widespread adoption of EVs and the development of this emerging sector of the Texas economy."  The recommendation will be addressed at today's open meeting.


Dynegy Enters Agreement to be Acquired by Icahn Enterprises
As noted yesterday in our live blog, Dynegy has entered into an agreement to be acquired by Icahn Enterprises L.P. for $665 million.  Dynegy will conduct a go-shop period through January 24 to solicit and consider other strategic alternatives.


Nelson Drafts Revision to Explicitly Limit Post Go-Live Nodal Surcharge Usage to 2011
PUCT Commissioner Donna Nelson has suggested a revision to a stipulated proposed order which would allow ERCOT to use nodal surcharge funds for post go-live activities related to nodal implementation (38840, 12/8).  Nelson's modification would limit ERCOT's authority to use $25.2 million of nodal surcharge funds for such activities to the period through December 31, 2011, imposing a sunset date on such authority.  ERCOT's operating budget for 2011 contemplates that the funds would be used for 2011, but nothing in the proposed order, prior to Nelson's revision, limited the funds for use in 2011.


DPUC Approves CL&P, UI Default Service Rates
The Connecticut DPUC has approved previously filed Standard Service and Last Resort Service rates for Connecticut Light & Power and United Illuminating, for the year 2011.  Rates are available in the linked orders below.  
CL&P Rate Order   
UI Rate Order


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