state of new jersey board of public utilities124 halsey street p.o. box 45029 newark, nj 07102 i...
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Agenda Date: 10/23/08Agenda Item: LSD
STATE OF NEW JERSEYBoard of Public Utilities
Two Gateway CenterNewark, NJ 07102www.ni.aov/bDu/
ENERGY
))))
ORDER
DOCKET NOS. EOO8050326EOO8080541EOO8080542EOO8080543EOO8080544
(SERVICE LIST ATTACHED)
BY THE BOARD:
By Order dated July 1, 2008, pursuant to N.J.S.A. 48:3-98.1 ("Section 98.1 "), the Board directedthe State's electric distribution companies ("EDCs"), Public Service Electric & Gas Company("PSE&G"), Jersey Central Power & Light Company ("JCP&L"), Atlantic City Electric Company("ACE"), and Rockland Electric Company ("RECO"), to submit proposals for demand response("DR") programs to be implemented for the period beginning June 1, 2009. Proposals weresubmitted in a timely manner by PSE&G, JCP&L, ACE and RECO.
The July 1, 2008 Order also set a procedural schedule designed to maximize stakeholderparticipation while expediting the process to increase the use of DR. On August 22, 2008, RateCounsel met with Staff to express its concern that due, in part, to missing necessarycomponents in the filings, proposals as submitted were not administratively complete, and thatthe expedited procedural schedule did not allow sufficient time for fully evaluating the moreinnovative and complex proposals submitted by the EDCs. Staff agreed with Rate Counsel, butwas concerned that extending the procedural schedule could jeopardize the timelyimplementation of those DR programs that contemplated participation in the relevant PJMprograms in time to meet the deadline for registering DR with PJM for the period beginning June1, 2009.
Staff and Rate Counsel agreed on a suggested plan of action that would address theseconcerns, and presented it to the EDCs at a meeting on August 27, 2008. One of the keyelements of this plan was an interim step to ensure that some level of DR would be in effect forthe period beginning June 1, 2009, namely, the adoption by the Board of a modified version ofthe proposal submitted in November 2007 by the Demand Response Working Group ("DRWG")to be implemented through the EDCs under Section 98.1. The plan of action outlined at theAugust 27 meeting was memorialized in a letter sent to the EDCs by Energy Division DirectorNusha Wyner on August 29, 2008. The letter requested responses from the EDCs bySeptember 8,2008.
.The
EDCs responses to adopting a modified version of the DRWG proposal are summarized asfollows:
ACE stated that if the Board chooses to implement the DRWG proposal "... the Companyrespectfully submits that funding for the proposed 'premium payment' be providedthrough funds available to the Office of Clean Energy."
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PSE&G stated that "[i]f the BPU wishes to pursue a near-term CSP-based DR initiative,it can do so in the competitive segment of the DR program... without the involvement ofthe EDCs."
RECO proposed a DR incentive program for commercial and industrial customers that"essentially implements the DRWG proposal... [and] is both consistent with yourproposal and eminently feasible."
JCP&L supported the implementation of the DRWG proposal subject to "satisfactoryresolution of the funding/cost recovery issues,"
After carefully considering the filings and responses, and in view of its desire to follow therecommendations of the draft Energy Master Plan by implementing a program that willencourage the growth of DR in New Jersey, at its September 12, 2008 agenda meeting, theBoard directed Staff to reconvene and lead a working group on September 18, 2008 for thepurpose of modifying the DRWG proposal to include, but not be limited to, the following issues:
Identifying a funding source other than the Retail Margin account;
.
Suggesting funding options in the event that the proposal's 300 MW cap is exceeded;
Establishing measurement and verification protocols; and
.
Fostering cooperation between EDCs and CSPs (curtailment service providers)
These decisions were later memorialized in an Order dated September 22, 2QO8.
2 DOCKET NOS. EOO8050326, EOO8080541EOO8080542, EOO8080543 & EOO8080544
As directed, Staff convened a working group on September 18, 2008, and in a 3Y2-hour sessionchaired by Frank Perrotti and Ronald Reisman, addressed the issues that required modification.On September 26, 2008, a Secretary's letter containing the proposal as modified by Staff basedon working group suggestions, was e-mailed to the listserv and posted on the BPU website.Comments were requested by October 10, 2008.
All four EDCs submitted comments by October 10, 2008 that are summarized as follows:
ACE and JCP&L filed comments jointly, noting that they "...are generally supportive ofthe Board's DR objectives and the fundamental underlying premise of the ModifiedProposal", although they suggested that "...the cost recovery method must beclarified..." and EDCs should be allowed to call curtailment events.
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RECO "has no objection to such proposal" although it supports the cost recoveryclarification suggested by ACE and JCP&L, and also believes the Board should allow for"incentive rate treatment" in addition to program cost recovery.
PSE&G "does not support the DRWG proposal for implementation at this time." PSE&Gstates that the Board should adopt the DR programs outlined in its August 5, 2008 filing,which are "...supported by pre-filed testimony...subject to extensive discovery, andinclude[s] a detailed cost-benefit analysis." PSE&G states that the DRWG proposal"... has not been subject to any discovery and there is no supporting cost-benefitanalysis," while also challenging the Board's authority"... that allows it to direct utilities toundertake a program such as the DRWG proposal."
In discussions with Staff and Rate Counsel, JCP&L, ACE and RECO agreed to schedule publichearings within their service areas on the DRWG Modified Proposal, and have published noticeof same. RECO will hold its hearings on November 5, 2008 in Alpine; JCP&L on November 13,2008 in Morristown; and ACE on November 25, 2008 in Mays Landing. PSE&G has advisedStaff and Rate Counsel that it refuses to schedule public hearings on the DRWG ModifiedProposal because of the objections outlined in its comments.
The Board has not yet determined whether it will approve the DRWG Modified Proposal, since,as noted by the EDCs, there are still some issues which must be clarified before the proposalcan be submitted for the Board's review. However, prior to the Board's review of the DRWGModified Proposal, and due to the potential for some level of rate increase if approved, thepublic is entitled to notice and an opportunity to be heard. Accordingly, public hearings areappropriate at this time to provide for public comment. The Board is disappointed in PSE&G'sposition and the lack of cooperation which PSE&G has demonstrated in this matter in light of theimportance of increasing DR as part of the State's energy initiatives.
3 DOCKET NOS. EOO8050326, EOO8080541 ,EOO8080542, EOO8080543 & EOO8080544
Therefore, the Board HEREBY ORDERS PSE&G to immediately prepare and publish a Noticeof Public Hearing on the DRWG Modified Proposal. The hearings shall be scheduled for theearliest possible dates allowed under N.J.A.C. 14:1 -5.12(c), but no later than December 1,2008.
BOARD OF PUBLIC UTiliTIESBY:DATED:! () / d3 /0 f
~~JE~~~i;i~::K~~::~~5~: /' I f1
VESIDENT/
,/ I
(.a-uTLERCOMMISSIONER
jI10SEPH L. FIORDALISO
COMMISSIONER/ ,..
L 9w-COMMISSIONER
ATTEST:
I~ /7#KRISTI IZZO /) ()
SECRETARY
DOCKET NOS. EOO8050326, EOO8080541 ,EOO8080542. EOO8080543 & EOO8080544
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Page 1 of3
Board of Public UtilitiesI/M/O Demand Response Programs for the Period Beginning June 1, 2009 -Electric Distribution Company Programs,
Docket No. EO08050326 andIIM/O Demand Response Programs for the Period Beginning June 1,2009 -Market-based Programs,
Docket No. EO08060421Service List
John GarveyDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102john. [email protected]
BPU STAFFKristi Izzo, SecretaryBoard of Public UtilitiesTwo Gateway CenterNewark, NJ [email protected]
Jessica CampbellDivision of LawDept. of Law & Public Safety124 Halsey Street
P.O. Box 45029Newark, NJ 07102i essica. [email protected]
Nnajindu UgojiDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102naii. [email protected]
Anne ShattoDivision of LawDept. of Law & Public Safety124 Halsey StreetP.o. Box 45029Newark, NJ 07102anne. [email protected]
Ronald ReismanOffice of the OmbudspersonBoard of Public UtilitiesTwo Gateway CenterNewark, NJ 07102ronald. [email protected]
Nusha Wyner, DirectorDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102nusha. v.'[email protected]
Andrea Sarmentero-GarzonCounsel's OfficeBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey [email protected]
Kerri KirschbaumDivision of LawDept. of Law & Public Safety124 Halsey StreetP.O. Box 45029Newark, NJ [email protected] Patnaude
Counsel's OfficeBoard of Public. UtilitiesTwo Gateway CenterNewark, New Jersey [email protected]
Frank PerrottiDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102frank. [email protected]
Caroline VachierDivision of LawDept. of Law & Public Safety124 Halsey StreetP.O. Box 45029Newark, NJ 07102caroline. vachier dol.l us
Alice Bator, ChiefDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102alice. bator@b~u.state.ni. us
DAGElise GoldblatDivision of LawDept. of Law & Public Safety124 Halsey StreetP.O. Box 45029Newark, New Jersey 07102
RATE COUNSELStefanie A. Brand, DirectorDivision of Rate Counsel31 Clinton Street, 11 th FloorP.O. Box 46005Newark, New Jersey 07102
Linda NowickiDivision of EnergyBoard of Public Utilities44 S. Clinton Ave.Trenton, NJ [email protected] Paul Flanagan
Division of Rate Counsel31 Clinton Street; 11th FloorP.O. Box 46005Newark, New Jersey 07102
Babette TenzerDivision of LawDept. of Law & Public Safety124 Halsey StreetP.O. Box 45029Newark, NJ 07102babette. [email protected]).us
Robert SchultheisDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102
robert.schultheis@b)2u.state.nj.us
Sheila IannacconeDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102sheila. [email protected]
Ami MoritaDivision of Rate Counsel31 Clinton Street, 11th FloorP.O. Box 46005Newark, New Jersey 07101
[email protected],i.us
Alex MoreauDivision of LawDept. of Law & Public Safety124 Halsey StreetP.O. Box 45029Newark, NJ 07102alex. [email protected]
Page 2 of3
Board of Public UtilitiesI/M/O Demand Response Programs for the Period Beginning June 1,2009 -Electric Distribution Company Programs, Docket No.
EO08050326 andI/M/O Demand Response Programs for the Period Beginning June 1,2009 -Market-based Programs,
Docket No. EO08060421Service List
Philip J. Passanante, Esq.Assistant General CounselAtlantic City Electric Co. -89KS42800 King St., 5th FloorP.O. Box 231Wilmington, DE 19899-0231phi lip. passanante@pencoholdin!!s.com
Arthur E. Korkosz, Esq.FirstEnergy Corp.76 South Main St.Akron, OR 44308korkosza({i).firstener!!v corn. com
Diane SchulzeDivision of Rate Counsel31 Clinton Street, 11th FloorP.O. Box 46005Newark, New Jersey [email protected]
Nicholas W. Mattia, Jr., Esq.Dickstein Shapiro LLP1825 Eye St., NWWashington, DC 20006-5304matti [email protected]
Marc B. Lasky, Esq.Thelen Reid Brown Raysman &Steiner LLP200 Campus Drive, Suite 210Florham Park, NJ 07932mlaskv{@.thelen.com
Kurt Lewandowski, Esq.Division of Rate Counsel31 Clinton Street, 11 th FloorP.O. Box 46005Newark, New Jersey 07101
Wayne BarndtPepco Holdings, Inc. -79NC59New Castle Regional Office 401Eagle Run RoadP.O. Box 9239Newark, DE 19714wavn e. [email protected]
Michael J. Connolly, Esq.Thelen Reid Brown Raysman &Steiner LLP200 Campus Drive, Suite 210Florham Park, NJ [email protected]
James Glassen, Esq.Division of Rate Counsel31 Clinton Street, 11th FloorP.o. Box 46005Newark, New Jersey [email protected]
Rate Counsel ConsultantsBrian BiewaldSynapse Energy Economics, Inc.22 Pearl St.Cambridge, MA [email protected]
Roger E. PedersenManager, NJ Regulatory AffairsAtlantic City Electric Co. -63ML385100 Harding HighwayMays Landing, NJ 08330roger [email protected]
ROCKLAND ELECTRICJohn L. Carley, Esq.Consolidated Edison Co. of NY,Inc.4 Irving PlaceNew York, NY [email protected]
Robert FaganSynapse Energy Economics, Inc.22 Pearl St.Cambridge, MA [email protected]
James C. Meyer, Esq.Riker, Danzig; Scherer, Hyland &Perretti LLPHeadquarters PlazaOne Speedwell Ave.P.O. Box 1981Morristown, [email protected]
Kenneth J. Parker, PresidentAtlantic City Electric Co. -63ML385100 Harding HighwayMays Landing, NJ 08330kenneth. arker atlanticci "electric.com
Rick HornbySynapse Energy Economics, Inc.22 Pearl St.Cambridge, MA 02139rhornbv@svnagse-energJ:.com
Jane QuinOrange & Rockland390 West Route 59Spring Valley, NY [email protected]
JCP&LMichael J. FilipponeJCP&L300 Madison AvenuePO Box 1911
Morristown, NJ 07962-1911mfiI i °rl°n [email protected]!]2.com
Jenn KallaySynapse Energy Economics, Inc.22 Pearl St.Cambridge, MA 02139j [email protected]
PSE&GFrances I. Sundheim, Esq.Public Service Electric & Gas Co.80 Park Plaza, T -08CNewark,NJ 07101frances [email protected]
Eva GardowJCP&L300 Madison Ave,P.O. Box 1911Morristown, NJ [email protected]
Gregory Eisenstark, Esq.PSEG Services Corporation80 Park Plaza, T5GNewark, NJ 07102gregorv [email protected]
Chris SiebensFirstEnergy -Rates Department2800 Pottsville PikeReading, P A 19640cs i ebens@firstenergy~orn. com
ATLANTIC CITY ELECTRICWalter L. DavisAtlantic City Electric Co. -63ML38New Castle Regional OfficeEagle Run RoadP.O. Box 9239Newark, DE 19714walt. davis a atlanticci electric. com
Page 3 of3
Board of Public UtilitiesI/M/O Demand Response Programs for the Period Beginning June I, 2009 -Electric Distribution Company Programs, Docket
No. EO08050326 andI/M/O Demand Response Programs for the Period Beginning June 1,2009 -Market-based Programs,
Docket No. EO08060421Service List
Connie E. LemboPublic Service Electric & Gas Co.80 Park Plaza, T -08CNewark, NJ 07101Cons tan ce.1 em [email protected]
Timothy Daniels, Dir., Energy PolicyConstellation Energy Resources, LLC810 Seventh Avenue, Suite 400New York; NY 10019timoth .daniels (. constellation. com
Ritchie Don PriddyDirector, Demand ResponseMarketingSUEZ Energy Resources NA, Inc.1990 Post Oak Blvd., Suite 1900Houston, TX 77056TOri ddy({i2su ezen erlZvna. co m
Marc A HanksDirector, Government & RegulatoryAffairsDirect Energymhanks@stratee:icenere:y.com
Joseph JanochaManager, Regulatory AffairsAtlantic City Electric Co. -63ML385100 Harding HighwayMays Landing, NJ 08330ioseoh. [email protected]
OTHERSTom RutiglianoConsurnerPowerline17 State Street, 19d1 FloorNew York, NY 10004truti gl i [email protected]
Glen Smith, President and CEOEnergy Curtailment Specialists4455 Genesee StreetBuffalo NY 14225gesmith(@,ecsnv,com
Charles Alexander CastleBevan, Mosca, Giuditta & Zarillo, PC776 Mountain Blvd, Suite 202Watchung, NJ [email protected]
Andrea ReidEnergy DivisionBoard of Public UtilitiesTwo Gateway CenterNewark, NJ [email protected]
Paul Tyno, Exec. Vice PresidentEnergy Curtailment Specialists4455 Genesee StreetBuffalo NY [email protected]
Frank MagnottiComverge, Inc.120 Eagle Rock Ave.East Hanover, NJ [email protected]
Dara Biltekoff, Corporate CounselEnergy Curtailment Specialists4455 Genesee StreetBuffalo NY [email protected]
David Holland,Account ExecutiveEnergy ServicesHoneywell Utility SolutionsWayne Interchange Plaza I145 Rt. 46 WestWayne, New Jersey [email protected]
Troy AnatraComverge, Inc.120 Eagle Rock Ave.East Hanover, NJ [email protected]
Steven S. Goldenberg, Esq.Fox Rothschild LLP997 Lenox Drive, Building 3Lawrenceville, NJ 08648
David Ellis, Senior Vice PresidentEnerwise Global Technologies, Inc.511 School House Road, Suite 200Kennett Square, PA [email protected]
Elizabeth EisenhauerEnergy Curtailment Specialists4455 Genesee StreetBuffalo NY [email protected]
Laurie Wiegand-JacksonNorth America Power Partners LLC44 Cooper St., Suite 111Woodbury, NJ 08096I [email protected]
Kenneth D. SchislerSenior Director, Regulatory AffairsEnerNOC, Inc.75 Federal St., Suite 300Boston, MA [email protected]
Phil GerminarioManager, Demand Response andGreen PowerSUEZ Energy Resources NA, Inc.333 Thomall St., 6th FloorEdison, NJ 08837ghil. [email protected]
Lisa GurkasDivision of Rate Counsel31 Clinton Street, IlthFloorP.O. Box 46005Newark, New Jersey [email protected]
Divesh Gupta, CounselConstellation Energy Resources, LLCIII Market Place, Suite 500Baltimore, MD 21202di vesh. gu [email protected]