Study Tour 2003
Licensing/Competition Committee
Study Tour on Competition and Market Structure Issues
September 27 - October 4, 2003
Massachusetts, Pennsylvania, Maryland, Washington, DC, U.S.A.
Sponsored by:
US Agency for International Development (USAID) and
National Association of Regulatory Utility Commissioners (NARUC)
 Agenda
Participant List
Materials
Objectives
1. Wholesale Market: To analyze the wholesale market design in the US.
· Transaction options
· Market power and mechanisms to ensure efficient competition
· Ancillary services
· Transmission access, pricing, planning and expansion
· Market monitoring; control and supervision of market activities
· Relationship between regulator and ISO
· Guarantee of supply
· Maintaining reliability of power supply
· Role of demand response programs
· Large customers v small customers
· Mandatory or voluntary electricity pools
· RTO formation
· Organization and governance
· Reliability and security in a competitive market and in the transient time-period
· Transmission service balancing
· Power system balancing
· Transmission owner compensation
- Distribution: To be addressed by the Massachusetts and Maryland Commissions
· Regulating the distribution system
· Distribution system planning and expansion
· Maintaining reliability, regulatory incentives
· Regulatory oversight of competitive service providers
· Distributed generation and interconnection requirement
· New networks
· Quality of service (distributor v supplier) (regulatory incentives)
· Interconnections
· New networks
· Exclusivity
· Public service obligations, TSO obligations
· Connection to the grid
· Quality assurance (distributor v supplier)
2. To understand retail issues in the US.
Massachusetts Commission
· Regulatory policies with regards to customer choice
· Regulatory incentives and performance-based regulation
· Interconnections
· Metering and billing issues
· Role of utility as provider of last resort; default service issues
· Role of consumer education, protection and billing in customer choice
Maryland Commission
· Retail competition
· Regulation and development of the retail market for small customers
· Regulation of competitive entities including: licensing conditions, licensees control, termination of licenses
3. To understand the federal v state regulatory responsibilities (FERC).
· Market monitoring
· Distribution v transmission
· RTO formation
· How to ensure non-discriminatory TPA to the transmission and distribution networks
Agenda
10:00 Depart to Federal Energy Regulatory Commission (FERC)
http://www.ferc.gov
888 1st Street, N.E.
Room 3M1
Washington, DC 20426
Mr. Dennis Vasapoli, Office of External Affairs
Mr. William Booth, Office of Market Oversight
Mr. William Longenecker,Office of Markets, Tariffs and Rates
Tel: (202) 208-2256
FERC is an independent regulatory agency within the Department of Energy that regulates the transmission and sale for resale of natural gas in interstate commerce, regulates the transmission of oil by pipeline in interstate commerce, regulates the transmission and wholesale sales of electricity in interstate commerce, licenses and inspects private, municipal and state hydroelectric projects, oversees related environmental matters and administers accounting and financial reporting regulations and conducts of jurisdictional companies
· FERC’s staff & budget
· Current issues: standard market design
· Market monitoring
· Distribution v transmission
· Cross-border (Canada and Mexico)
· RTO formation
· How to ensure Non-discriminatory third party access to the transmission and distribution networks
11:00 Tour of the FERC Market Monitoring Center
Transfer to NARUC offices by taxi (1101 Vermont Ave., NW, Suite 200, Washington, D.C. 20005 Tel: (202) 898-2200)
12:00 Lunch at NARUC offices
13:30 Meeting at NARUC offices with:
U.S. Department of Energy
http://www.doe.gov
1000 Independence Ave., S.W.
Washington, DC 20585
Mr. Lawrence Mansueti, Director, Electric Markets Technical Assistance
Tel: (202) 586-2588
The Department of Energy’s overarching mission is to advance the national, economic and energy security of the United States; to promote scientific and technological innovation in support of that mission; and to ensure the environmental cleanup of the national nuclear weapons complex. The Department has four strategic goals toward achieving the mission: defense strategic goal, energy strategic goal, science strategic goal and environment strategic goal.
· Role of the DOE
· Northeastern Blackout
· “Grid 2030” architecture
· Regional interconnections
15:00 Edison Electric Institute
http://www.eei.org/
701 Pennsylvania Ave NW
Washington, DC 20004-2696
Mr. Michael Oldack, Senior Director, State Competitive and Regulatory Policies
Tel: (202) 508-5630
Edison Electric Institute (EEI) is the premier trade association for U.S. shareholder-owned electric companies, and serves international affiliates and industry associates worldwide. Our U.S. members serve more than 90 percent of the ultimate customers in the shareholder-owned segment of the industry and nearly 70 percent of all electric utility ultimate customers in the nation, and generate almost 70 percent of the electricityproduced by U.S. electric utilities. Organized in 1933, EEI works closely with all of its members, representing their interests andadvocating equitable policies in legislative and regulatory arenas. In its leadership role,EEI provides advocacy, authoritative analysis, and critical industry data to its members, Congress, government agencies, the financial community and otheropinion-leader audiences. EEI provides forums for member company representatives to discuss issues and strategies to advance the industry and to ensure a competitive position in a changing marketplace.
· Electric Restructuring
16:00 Discussion with NARUC and U.S. Agency for International Development
http://www.naruc.org http://www.usaid.gov
· Dr. Robert Ichord, Chief, Energy & Infrastructure Division Bureau for Europe & Eurasia, USAID
· Mr. Robert Archer, Deputy Chief, Energy & Infrastructure Division, Bureau for Europe & Eurasia, USAID
The National Association of Regulatory Utility Commissioners (NARUC) is a non-profit organization founded in 1889. Its members include the governmental agencies that are engaged in the regulation of utilities and carriers in the fifty States, the District of Columbia, Puerto Rico and the Virgin Islands. NARUC's member agencies regulate the activities of telecommunications, energy, and water utilities.
NARUC's mission is to serve the public interest by improving the quality and effectiveness of public utility regulation. Under State law, NARUC's members have the obligation to ensure the establishment and maintenance of such energy utility services as may be required by the public convenience and necessity, and to ensure that such services are provided at rates and conditions that are just, reasonable and nondiscriminatory for all consumers.
The US Agency for International Development has been the principal U.S. agency to extend assistance to countries recovering from disaster, trying to escape poverty, and engaging in democratic reforms. USAID is an independent federal government agency that receives overall foreign policy guidance from the Secretary of State. The agency works in areas crucial to achieving both sustainable development and advancing U.S. foreign policy objectives.
17:00 Conclusion
17:15 Transfer to USAID offices by taxi (Maria Manicuta, Angel Semerdjiev, Gabor Szorenyi to attend)
U.S. Agency for International Development
Ronald Reagan Building
Washington, D.C. 20523-1000
Tel: (202) 712-4810
Mr. Kent Hill, Assistant Administrator, Bureau for Europe and Eurasia
Woody Mefford, Deputy Assistant Administrator, Bureau for Europe and Eurasia
19:00 Dinner at City Lights of China
1731 Connecticut Ave., N.W.
Washington, DC 20009
(202) 265-6688
20:30 Pick-up luggage at hotel; transfer to Maryland by bus
22:00 Check-in to:
Radisson Plaza Lord Baltimore
20 West Baltimore St.
Baltimore, MD 21201
Tel: (410) 539 8400
Fax: (410) 625 1060
Breakfast at hotel; check-out of hotel
08:30 Depart hotel; transfer to Maryland Public Service Commission
09:00 Maryland Public Service Commission
http://www.psc.state.md.us/psc/
16th Floor, 6 St. Paul Street
Baltimore, MD 21202-6806
Dr. Rajnish Barua, Director, IRP Division
Tel: (410) 767-8024
The Commission regulates gas, electric, telephone, water, and sewage disposal companies. Also subject to the jurisdiction of the Commission are electricity suppliers, fees for pilotage services to vessels, construction of a generating station and certain common carriers engaged in the transportation for hire of persons. The PSC's jurisdiction extends to taxicabs operating in the City of Baltimore, Baltimore County, Cumberland, and Hagerstown.
09:00 Welcome Remarks and Introduction
Mr. Kenneth D. Schisler, Chairman, Maryland Public Service Commission
09:15 Overview of Maryland Public Service Commission
Mr. Gregory Carmean, Executive Director
09:30 Retail electricity access legislation in Maryland
Mr. Gregory Carmean, Executive Director
· Role of electric distribution companies under retail electricity access
· Distribution of electricity to customers
10:00 Certificate of Public Convenience and Necessity (CPCN) process for generation
Mr. Craig McDonnell, Regulatory Economist, IRP Division
· Coordinating state agencies and their roles
· CPCN actions and waivers by the MD-PSC
10:45 Break
11:00 Licensing and regulation of electricity suppliers in Maryland
Mr. Jorge Valladares, Regulatory Economist, IRP Division
· License application requirements and conditions
· Regulatory oversight of licensed electric suppliers
· Annual reporting requirements
· Violation and termination of license
12:00 Lunch
13:30 Coordination with the regional electric grid (PJM)
Dr. Rajnish Barua, Director, IRP Division
· System planning and generation interconnection
· Coordination of generation in the regional context
14:15 Commission’s reports and quality of service
Dr. Rajnish Barua, Director, IRP Division
· The Commission’s Ten Year Plan and Electric Supply Adequacy Report
· Coordination of federal, regional, and state issues
· Regulation on quality of service
15:00 Discussion session
15:30 End of session; transfer to Norristown, PA by bus
17:30 Check-in to:
Radisson Valley Forge
1160 First Avenue
King of Prussia, PA 19406
Tel: (610) 337-2000
18:30 Group dinner, Bertolini’s Italian Trattoria
Breakfast at hotel; check-out of hotel, place luggage on bus.
09:00 Check-out of hotel. Transfer by bus to PJM Interconnection
09:30 Pennsylvania-New Jersey-Maryland (PJM) Interconnection, LLC
http://www.pjm.com
955 Jefferson Ave., Valley Forge Corporate Center
Norristown, PA
Mr. John Gdowik, Senior Analyst, Customer Relations and Training Department Tel: (610) 666-8841
PJM Interconnection, LLC is responsible for the day-to-day operation of the largest centrally dispatched electric system in North America. Its foremost responsibility is the safe and reliable operation of the transmission system and ensuring the reliable supply of energy from generating resources to wholesale customers. In addition, it operates the competitive wholesale energy market for the region and facilitates open access to transmission. With over 170 members including every segment of the electric power industry, its market has become one of the most liquid and active energy markets in the United States.
Welcome Remarks and Introduction
· Mission and Statistics
· ISOs in North America
· Governance and Structure
· PJM Markets
10:45 Coffee break
· Bidding Process Overview
· Two-Pass Settlement Markets (Day-ahead market settlement, Real-time market settlement)
· PJM Locational Marginal Pricing Overview
12:00 Lunch, at PJM
13:00 (PJM continued)
· Ancillary Services (Examples of Ancillary Services)
· PJM Regional Planning Process
· Market Settlements
15:00 Discussion session
15:30 Conclusion. Depart PJM; transfer by bus to Philadelphia.
17:30 Train to Boston, MA from Philadelphia
Dinner on train in the dining car
22:30 Arrive in Boston, MA; transfer to hotel
Check-in to:
Doubletree Hotel
821 Washington St.
Boston, MA 02111
Tel: (617) 956-7900
Breakfast at hotel
08:45 Depart to:
Massachusetts Department of Telecommunications and Energy
http://www.state.ma.us/dpu
One South Station, 2nd Floor
Boston, MA 02110
Tel: (617) 345-9102
Commissioner James Connelly
The Department is responsible for the structure and control of monopoly Telecommunications and Energy in the Commonwealth; developing alternatives to traditional regulation and traditional monopoly arrangements; controlling prices and profits; monitoring service quality; regulating safety in the transportation and gas pipeline areas; and for the siting of energy facilities. The mission of the Department is to ensure that utility consumers are provided with the most reliable service at the lowest possible cost as determined by its orders; to protect the public safety from transportation and gas pipeline related accidents; to oversee the energy facilities siting process; and to ensure that residential ratepayers' rights are protected under regulations.
09:00 Welcome Remarks and Introduction
09:15 Commission Organization
· Role of Commission staff
· Commissions’ relationship with utilities, competitive entities and customers
10:30 Break
10:45 (MADTE cont.)
Chairman Paul Afonso, Massachusetts Department of Telecommunications and Energy
· New England response to the Midwest blackout
12:00 Lunch
13:00 ISO New England
http://www.iso-ne.com
Holyoke, MA
Tel: (413) 540-4220
Ms. Carolyn O’Connor, Director, External Affairs
Mr. Eric Johnson, External Affairs Representative
Mr. Henry Yoshimura, Office of Demand Response
Additional Participants:
Ms. Sandra Waldstein, Senior Policy Advisor, Vermont Public Service Board
Tel: (802) 828-1171
Created in 1997, ISO New England Inc. is the not-for-profit corporation responsible for the day-to-day reliable operation of New England's bulk electric generation and transmission system with an installed capacity of more than 31,000 megawatts. ISO New England also administers the region's $4.5 billion wholesale electricity marketplace, comprised of more than 200 market participants. It is the independent system operator (ISO) of New England's electricity supply.
ISO New England's mission is to plan for and ensure a reliable bulk power system for New England's 14 million residents; manage a fair, efficient wholesale electricity marketplace; and provide the information services that industry stakeholders need to successfully participate in the marketplace. ISO New England keeps the lights on from Eastport, Maine, to Westport, Connecticut.
13:00 Welcome Remarks and Introduction
Ms. Carolyn O’Connor, Direcor, External Affairs & Mr. Eric Johnson, External Affairs Representative
13:15 Ms. Carolyn O’Connor, Direcor, External Affairs & Mr. Eric Johnson, External Affairs Representative
· Overview of ISO New England
· New England standard market design
· Regional transmission organization
14:15 Mr. Henry Youshimura, Office of Demand Response
· ISO New England’s 2003 Demand Response Programs
15:30 Break
15:45 Discussion session
17:00 Conclusion; transfer to hotel.
19:00 Group dinner, McCormick & Shmick’s Seafood
Breakfast at hotel
09:00 Depart to Massachusetts Department of Telecommunications and Energy
MADTE Staff Participants:
Commissioner James Connelly
Mr. Ron LeComte, Director of Electric Power Division
Mr. Kevin Brannelly, Director of Rates Division
Mr. Sean Hanley, Deputy Director of Rates Division
09:30 Mr. Kevin Brannelly, Director of Rates Division
Mr. Sean Hanley, Deputy Director of Rates Division
· MA DTE Process and Procedure
10:30 Mr. Barry Perlmutter
Default Service Issues
· Trends in rate design
· Impact on the competitive market
11:00 Ms. Diedre Matthews, Director, Energy Facilities Siting Board
· Generation and Transmission Siting Process
12:30 Lunch
13:15 Transfer to N-Star
Boston Edison/N-Star
http://www.nstaronline.com
Administration Offices
One NSTAR Way
Westwood, MA 02090
Tel: (781) 441-3776
Mr. Mark Reed, Director of Public Affairs
Ms. Ellen Angley, Office of Transmission and Supply
Mr. Warner Schweiger, Senior Vice President of Operations
As Massachusetts’ largest investor-owned electric and gas utility, NSTAR, headquartered in Boston, transmits and delivers electricity and natural gas to 1.3 million residential and business customers in over 100 Eastern Massachusetts communities. NSTAR’s regulated subsidiaries have more than 3,000 employees. NSTAR also has non-utility subsidiaries in telecommunications and other energy-related fields.
14:00 Boston Edison/N-Star
· Presentation on FERC Transmission, Distribution Issues, RTO Issues
· Locational Marginal Pricing
· Interconnection standards
· Emergency Response
· Reliability of the system
15:30 Tour of the retail customer call center
16:00 Conclusion
18:00 Dinner on your own
Breakfast at hotel; check-out of hotel by 14:00
Morning Free time
14:00 Depart by taxi for Logan Airport
Participant List
Bulgaria
State Energy Regulatory Commission
Commissioner Angel Semerdjiev
Czech Republic
Energy Regulatory Office
Mr. Jaroslav Bartl, Licensing Section
Estonia
Energy Market Inspectorate
Mrs. Tiina Maldre, Chief Specialist
Hungary
Hungarian Energy Office
Dr. Gabor Szorenyi, Director, Directorate of Energy Supply and Consumer Protection
Latvia
Public Utilities Commission
Mrs. Sandija Audzere, Head, Energy
Regulation Division in the Legal Department
Lithuania
National Control Commission for Prices and Energy
Mr. Kestutis Zilenas, Head of Licensing Department
Romania
Romanian Electricity and Heat Regulatory Authority (ANRE)
Commissioner Maria Manicuta
Slovakia
Regulatory Office for Network Industries
Mrs. Natasa Hudcovicova, Specialist, Department of Technical Regulation
Turkey
Energy Market Regulatory Authority
Mr. Murat Ozercan, Group Head
United States
National Association of Regulatory Utility Commissioners
Ms. Kimberly Bazikov, Program Officer
Presentations
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