New York Cyber Security Update

10/19/2018 6:52:41 PM -



On June 14, 2018, the New York Commission presented the need to address cyber security events to, as the commission stated, “mitigate vulnerability of utility systems to cyber-attacks, and to ensure that confidential and sensitive customer information remains safeguarded from potential data breaches.”  The Commission indicated the need for not only the utilities to have adequate cyber protections, but for other entities that interface with the utilities’ systems to also have adequate cyber protections as well.

The Joint Utilities asked that all energy services entities (ESEs), (1) complete a Self-Attestation of information security controls; and (2) execute a Data Security Agreement (DSA) with the utilities with whom the ESE does business. The Joint Utilities assert authority under the Uniform Business Practices (UBP) that the utility may discontinue an ESCO’s participation in its retail access program for not complying with the above two requests.
 
As of the September 21, 2018, approximately 80% of ESCOs have executed the DSA, and approximately 75% of ESCOs have executed the Self-Attestation.  The ESCOs that have executed a complete DSA serve approximately 90% of New York retail Access customers. With respect to EDI providers, approximately 50% have executed the DSA and approximately 35% have executed the Self-Attestation.

Based on the Staff creating a Frequently Asked Questions document that was made available on September 14, 2018, they expect the numbers of ESE that have executed both the DSA and the Self-Attestation to continue to increase over the next several weeks as their questions are addressed.

Staff is encouraged that a large majority of ESEs have executed the Self-Attestation and DSA. To the extent there are remaining ESEs that have failed to do so, the utilities have the ability to initiate the discontinuance process which requires Staff’s interaction.

More details on the above information can be found within the following - CASE 18-M-0376 - Proceeding on Motion of the Commission Regarding Cyber Security Protocols and Protections in the Energy Market Place…found at the following Link -http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/4a24d0d51395b1f8852582a2004398a3/$FILE/36604176.pdf/18-M-0376%20DPS%20Staff%20Report%20-%20Cyber%20Security%20B2B%20Process%2020180924.pdf

Changes Coming to the Maryland Market


Petition to Initiate a Rulemaking Associated with PC44 and Enhancements to the Competitive Markets and Customer Choice Regulations
 

The Competitive Markets and Customer Choice Workgroup has been holding work sessions on Phase II of this project to discuss and define changes ordered by the PSC Associated with PC44 and Enhancements to the Competitive Markets and Customer Choice Regulations.  After numerous meetings, the group submitted a report and recommendation that the Public Service Commission of Maryland (“Commission”) initiate a rulemaking proceeding to consider the proposed draft regulations appended to this report.

Progress and agreement were achieved on several items, however the group failed to come to consensus on all items, among them ... seamless move and instant connect.    The CMCC workgroup recommended that the Commission initiate a rulemaking proceeding, request comments on this report to get more feedback, and schedule a rulemaking session to consider the proposed regulatory changes. 
 
Several of the items that were not agreed on for implementation at this time include Seamless Moves and Instant Connects.  however, draft guidelines to do so have been prepared for if/when a decision is reached to implement.
 
Requirements for Suppliers to offer Budget Billing comparable to what the Utilities currently offer for Electric and Gas customers was discussed.  The Work Group drafted regulations that would be applicable to suppliers who voluntarily elect to offer a budget billing option to their customers.
 
Lastly, the CMCC Work Group reached a compromise on language related to the posting of open offers by suppliers to the Commission’s website, which would require modifications to existing regulations. The Work Group suggests that the existing applicable regulations reflect the requirement for a supplier to resolve differences between offers on the Commission website and the Suppliers website in the manner most favorable to the customer.
 
The link to the full Report and attachments can be found on the PSC website at: https://www.psc.state.md.us/search-results/?keyword=cmcc%2520  under:  Report Regarding Proposed Enhancements to the Competitive


EDI Changes - Net Metering

Suppliers that do not want to serve net metered accounts should make sure that they can identify these accounts prior to enrollments to prevent cumbersome /manual billing procedures or the need to quickly drop net metered customers.
 
The Maryland EDI workgroup also approved change controls that define the new meter read formats to facilitate the multiple Net meter programs and their Utility specific data requirements.  Suppliers who intend to serve net metered customers need to understand these changes and work with the EDI/Billing service providers and internal application support folks to make the appropriate changes to correctly bill net metered accounts. 

MarketWISE Changes

 

Changes are also being rolled out here at Marketwise.   We are launching a new Website that will provide significant information about our products and services, including demo videos. 
 
A new version of our Energy Portal product has been released that provides our clients with a consistent interface to quickly link to the most commonly requested information for each utility, market specific business rules concerning Enrollments, Bill options, FAQ and much more.  And also, with the new version you now have access to all this information via a mobile application.  You can be the smartest person in the room with a quick glance at your phone!
 
New tools are coming for everyone who participates in EDI workgroup meetings, and yes Marketwise is making these tools available to all workgroup participants for free as our contribution to continually trying to improve the methods and processes for market participants to collaborate and maintain the EDI implementation guidelines for each state.
 
Check back frequently as we will be announcing the demo of our Virtual Retail Analyst product that will provide up to 200 detailed business rules per utility via a user interface that will allow you to compare markets and perform gap analysis between markets that you are currently active and market that you are considering entering.   This product used in conjunction with our Market Entry training,  project management and Market monitoring products will get you into markets faster, cheaper and maintain your compliance going forward.
 
We are excited about sharing information with you about all of these new enhancements and coming products.  We are currently offering incentives to new clients that meet with us in October.   Please contact us to set up an overview and demo of our offerings. 
 
Marketwise, once again, had a booth at the vendor show at the Energy Marketing Conference in NYC on October 11, 2018.  If you didn’t have a chance to stop by, send us an email (info@mrktwise.com) and we will be happy to provide information on our products.





Changes are Coming from MarketWISE

8/1/2018 6:52:13 PM -



October will mark MarketWISE’s 3 year anniversary.  In 2015, we set out to provide custom consulting as well as to build online information products that provide market information in a cost effective manner.  While delivering these services, we strive to provide the highest value for our clients as well as our subscribers.  To better serve this purpose, we'd like to announce a few upcoming changes.
 
First, we're excited to introduce a revamp of our Energy Portal product!  We have built a database on a new technology platform which will allow us to expand the amount of information we provide our clients in a sustainable way.  And best of all, it will all work on your phone!  The new Energy Portal will be accessible via a mobile app, allowing you to answer commonly asked questions in seconds from the palm of your hand!  Existing clients should expect to be transitioned to the new platform in the coming weeks.  We will discuss it in our monthly meeting.  For non-clients, if you're interested in getting a look at the new platform, please reach out, and we'll be happy to demo it for you.
 

Additionally, the Energy Currents newsletter will be getting a face-lift.  We received feedback from our clients that the Working Group Meetings Recap was redundant of the information received in our Market Monitoring reports.  We will be modifying the newsletter to now focus on more industry articles and analysis of upcoming trends and topics of interest.  We want to help you all stay abreast of the larger strategic decisions that you should be thinking about as well as complying with the detailed market changes.  If you would like to talk about alternatives to receive detailed market change information, please give us a call and we can create a plan that works for you.

  
We want to give a big THANK YOU to our clients and we look forward to working with many more of you going forward!

 Tom





Energy Choice Possibly Coming to Nevada

7/2/2018 6:51:28 PM -



MarketWISE strives to keep you informed of both near term developments that require your immediate attention as well as some initiatives that may take years of planning and effort to reach implementation status in our industry. 

We have been tracking efforts in Nevada as they explore adopting Energy Choice.  This can be a long process but here is some history and the latest developments for you to utilize in your market expansion programs:


November 8, 2016
At the Nevada General Election on November 8, 2016, Nevada’s voters approved Ballot Question 3, the Energy Choice Initiative (“ECI”).  In order for ECI to become law, Nevada’s voters must approve the proposed constitutional amendment a second time at the 2018 General Election.

February 9, 2017
The Governor signed Executive Order 2017-03, establishing the Governor’s Committee on Energy Choice, on February 9, 2017.  The Committee to “identify the legal, policy, and procedural issues that need to be resolved, and to offer suggestions and proposals for legislative, regulatory, and executive actions that need to be taken for the effective and efficient implementation of [ECI].”

April 26, 2017 through June 18, 2018
The Committee first met on April 26, 2017 and concluded its work on June 18, 2018. The Committee was organized into five Technical Working Groups.  The Committee and its working groups met more than 30 times and heard from dozens of policy experts from Nevada and from around the nation. The following link constitutes the findings and policy recommendations adopted by the Committee as a result of this extensive deliberative process…http://energy.nv.gov/uploadedFiles/energynvgov/content/Programs/TaskForces/2017/Final%20Draft%20to%20Cmte_June%2012V3.pdf

May 9, 2018
On May 9, 2018, the Committee voted to approve all recommendations presented by each of the technical working groups. [NOTE: APPROVAL OF ECONOMIC IMPACTS RECOMMENDATION IS PENDING….]

November 6, 2018
During the Nevada General election to be held on November 6, 2018, Nevada voters can choose to approve or reject this amendment  The summary of the information link (above) that discusses in detail the Committee’s findings and policy recommendations may be required if ECI is approved at the November 2018 General Election. 
 

MarketWISE will keep you informed as more information becomes available within this Nevada effort as well as additional efforts in other states.  Please let us know if you have any questions on this information.





Cyber Security in New York

6/4/2018 6:50:42 PM -



On May 31, the New York Department of Public Service Staff hosted a meeting to discuss recently proposed Data Security Agreements (DSA) and Vendor Risk Assessments (VRA).  All parties (ESCOs and 3rd parties) with direct or indirect access to Utility systems must meet the new requirements.  These new regulations are a source of conflict in the industry, and all parties should decide where they stand on the topic and take immediate action as a result.

At this meeting, the Joint Utilities presented their case as to why these new measures were necessary and stressed the importance of moving forward quickly.  The ESCO and EDI Provider community countered that this needed to be a collaborative effort between them and the Utilities to best address the risk. The NY DPS Staff supported the Utilities’ authority to implement these new requirements and also supported continued dialogue to implement in the best way.  However, The Staff made it clear that this will not be rolled out via a lengthy back and forth discussion over several months, but in an urgent manner.

 
Key Takeaways

  • The Utilities will work to standardize their VRAs as much as possible in the next few weeks to reduce unnecessary redundancy of ESCO efforts
  • The Utilities have agreed to a 3 week comment period (ending June 22) during which ESCOs and EDI Providers are allowed to submit their official objections, concerns, and suggestions
  • The Utilities will listen to process oriented concerns only, and deem any discussion of the following as non-negotiable:
    • $10M Cyber Insurance requirement
    • Periodic VRAs to ensure compliance
    • Indemnification in the DSA
    • Acceptance of Liability in the DSA
  • The Staff will distribute specific instructions for how ESCOs can submit VRA information in a secure manner to each Utility as well as where to submit official comments for the Utilities
  • The Staff will schedule another meeting soon after the comments period to discuss further

The meeting has made it clear that these new requirements will definitely be implemented.  ESCOs and EDI Providers are roughly halfway through their original 60 day timeframe allowed by the Utilities.  It’s possible that the deadline may be extended, but there are no guarantees at this point, and it likely won’t be extended for long.  If your business has not been following this topic and taking action to complete the DSA and VRA, then we suggest you take action quickly!





Cyber Security in New York

5/1/2018 6:50:07 PM -



On May 31, the New York Department of Public Service Staff hosted a meeting to discuss recently proposed Data Security Agreements (DSA) and Vendor Risk Assessments (VRA).  All parties (ESCOs and 3rd parties) with direct or indirect access to Utility systems must meet the new requirements.  These new regulations are a source of conflict in the industry, and all parties should decide where they stand on the topic and take immediate action as a result.

At this meeting, the Joint Utilities presented their case as to why these new measures were necessary and stressed the importance of moving forward quickly.  The ESCO and EDI Provider community countered that this needed to be a collaborative effort between them and the Utilities to best address the risk. The NY DPS Staff supported the Utilities’ authority to implement these new requirements and also supported continued dialogue to implement in the best way.  However, The Staff made it clear that this will not be rolled out via a lengthy back and forth discussion over several months, but in an urgent manner.

 
Key Takeaways

  • The Utilities will work to standardize their VRAs as much as possible in the next few weeks to reduce unnecessary redundancy of ESCO efforts
  • The Utilities have agreed to a 3 week comment period (ending June 22) during which ESCOs and EDI Providers are allowed to submit their official objections, concerns, and suggestions
  • The Utilities will listen to process oriented concerns only, and deem any discussion of the following as non-negotiable:
    • $10M Cyber Insurance requirement
    • Periodic VRAs to ensure compliance
    • Indemnification in the DSA
    • Acceptance of Liability in the DSA
  • The Staff will distribute specific instructions for how ESCOs can submit VRA information in a secure manner to each Utility as well as where to submit official comments for the Utilities
  • The Staff will schedule another meeting soon after the comments period to discuss further

The meeting has made it clear that these new requirements will definitely be implemented.  ESCOs and EDI Providers are roughly halfway through their original 60 day timeframe allowed by the Utilities.  It’s possible that the deadline may be extended, but there are no guarantees at this point, and it likely won’t be extended for long.  If your business has not been following this topic and taking action to complete the DSA and VRA, then we suggest you take action quickly!





Supplier Consolidated Billing – Get Ahead of the Curve

4/2/2018 6:49:21 PM -



MarketWISE has been monitoring recent discussions which could present a strategic opportunity for your business.  Numerous northeast markets are developing plans for a Supplier Consolidated bill option, a process familiar to Texas market participants.  Current proposals in Ohio, Maryland, and Pennsylvania may each have their own unique models and business rules, and thus create new challenges and opportunities to Suppliers.


Why the Sudden Interest in SCB?

For years, market participants have fought for the implementation of Utility Consolidated Billing programs with Purchase of Receivables (POR).  These programs simplified operational processes on the Supplier side and supported the success of Choice programs in their early stages.  However, these programs are very restrictive as to the types of charges that can be included on the consolidated bill, primarily only charges that are commodity based.   As Suppliers introduce more non-commodity and service-based products, they are required direct bill those non-commodity charges to the customers.
Also, Suppliers as the primary biller, have an opportunity to use the bill as an important marketing tool which keeps their name in front of the customer and provides more interaction and customer service connections throughout their contract. 


Status of SCB Programs

Ohio:
AEP Ohio has a Supplier Consolidated Bill pilot underway with a small number of Suppliers that have entered the pilot program.   The Ohio EDI workgroup requested that the PUCO enable a broader group to participate in the development of business rules and transactions for the pilot, so that standardization across utilities and states can be addressed.  AEP is conducting their next meeting on April 10, 2018.  An update will be provided on the next Ohio EDI workgroup meeting.
 
Maryland:
The MD PSC held a legislative—style hearing on February 20, 2018 to hear further from interested persons, including any party who filed written comments in this proceeding, to ask questions about the Supplier Consolidated Billing project – Case No. 9461.  There were multiple presentations and there is currently another period for interested parties to submit comments.
 
Pennsylvania:
At the Commission’s January 18, 2018 Public Meeting, the Commission adopted a Joint Motion of Chairman Brown and Commissioner Kennard re: Petition of NRG Energy, Inc. for Implementation of Electric Generation Supplier Consolidated Billing (P-2016-2579249).  
Per the motion:

  1. The NRG Petition for Implementation of Electric Generation Supplier Consolidated Billing is denied, and that docket is closed.
  2. The Law Bureau and OCMO are to organize an en banc hearing, to occur on or before June 14, 2018, seeking comments on Supplier Consolidated Billing and other possible alternatives that would promote shopping and the inclusion of EGS value added services.
  3. The Law Bureau is to prepare a Secretarial Letter initiating the en banc proceeding consistent with this Motion.
  4. The Secretary's Bureau is to create a Docket Number for the en banc proceeding..


MarketWISE will track the progress of these SCB programs and participate in the implementation discussions supporting efforts to standardize business processes and transactions across States and Utilities to enable market participants and customers cost effective markets and choices.





A Wise Approach to Entering New Markets

3/2/2018 6:48:31 PM -



Wow, it is March 2018 already, almost ¼ of the way into the new year! How are you feeling about your 2018 Goals? If you're planning to enter a new market, here are some things to consider.

 

Each market will have some unique requirements that may be different from your current customer base. These can be system requirements, process requirements or both. Consider the case study of a Supplier who initiated a new market entry in MA and was unaware of the customer name validation requirement resulting in a large number of their initial enrollments failing. This required them to revisit all of those new customers, ask for additional information from their bills, and then resubmit of all of those enrollments.

The result was late enrollments, loss of savings to customers, a poor first impression on the supplier’s operational excellence and delayed cash flow for the Supplier. The team worked very hard to achieve the market entry, but a single missed detail overshadowed an otherwise great effort.

Each market has its own set of unique requirements and potential pitfalls to new participants. So, what is the Solution?  We want you to ensure all unique rules are researched and decisions clearly made in advance.  Then we advise you pull together your full cross functional team for a market overview training, to bring these issues to the surface and solve them BEFORE you go live.  Be proactive with your risk management.

If you've been tasked with entering new markets this year...Where do you start? Contact us to find out!





Renewable Energy News

2/5/2018 6:47:27 PM -



It's good to stay ahead of technology changes and MarketWISE is doing just that. 
The article below titled “Australia’s Tesla Solar Battery Turns a Profit” (written by Andy Probert), reports how Tesla recently built a Mega Battery and how it is proving to not only be effective at stabilizing the grid, but also profitable.  With the success of this project, Tesla has been signed to build additional Mega Batteries.  With greater adoption, these storage facilities could solve major hurdles with the modern grid and make renewable energy at a large scale much more feasible.  This couldincrease demand for more states to roll out large scale solar and wind capabilities such as Maryland's community solar.  As this occurs, rest assured, MarketWISE will be here to let you know how this will impact your day to day operations.

---------------------------------------------------------

Australia’s Tesla Solar Battery Turns a Profit

The world's biggest Powerpack battery shows that solar isn't just sustainable, but economically viable too. 
By Andy Probert - Published: January 25, 2018

The world’s biggest lithium-ion battery absorbed excess electricity on the South Australian grid, and resold it on the power market for around $810,000.  Tesla's Powerpack Project only came on stream in December, but on two occasions it has already stepped up to save the grid — and help its owners turn a quick profit.  Based on the Hornsdale Power Reserve in South Australia , the 100 MW battery system went live on December 1, 2017, and 14 days later sparked into action to keep the grid running smoothly when a coal plant tripped.

The $50 million battery is part of a collaboration between Tesla, the South Australian Government and renewable energy company Neoen.  Of the 100MW capacity, 70MW is reserved for the South Australian Government to use. The other 30MW is left to Neoen to use and sell on the wholesale market.

On January 13, the Powerpack was paid around $790/MWh to soak up excess electricity from the power grid and store for later use.  It has transpired that, based on estimates revealed by Renew Economy, Neoen sold the electricity back on the open market over January 18 and 19 for around $11,000/MWh.  Renew Economy based its estimate on power input and outage from the Power Reserve and the wholesale price.

Supply and demand for electricity have to be matched at all times, but when supply exceeds demand, the Tesla Powerpack comes into its own to store the excess as other forms of renewables may not be reliable.


NOTE: To access the entire article above go to the following Link…
  https://greenerideal.com/news/australia-tesla-solar-battery-turns-a-profit/

 






What's Your Training Plan?

12/26/2017 6:46:43 PM -



In today’s world of technology and self-help resources, we often find ourselves in an environment where we constantly share information via email, text, or social media.  This continuous real-time conversation is great to spread knowledge quickly, however, often it is one dimensional, in that there is not much feedback as to if the information is understood or being acted upon.
 
My favorite learning opportunity from my experience in the Energy industry is when an existing team, that is already successful in serving customers in one or more markets, initiates a new market entry or expansion project.  Typically, we would bring together a cross functional team to bring them up to speed on the new market requirements.

When we conducted the gap analysis between the markets, a funny thing tended to happen. Not only did we discover misunderstandings about the new market, but within all of the current processes as well.  Conversation and disagreements ensued, creating a great opportunity for idea exchange on processes improvement and the re-enforcement of the current processes and procedures.
 
How often do you as an organization or operational team, get together and review your procedures and upcoming changes to your industry, with emphasis not only on the responsibilities of each person but how the team interacts with each other?  Is there a common understanding of the objectives across the team?   Formal training provides an essential opportunity to test for this common understanding and for team members to question practices and suggest or discover areas for improvement.  
 
So, when should you schedule formal training?  Here are few suggestions:
 
Perhaps you have been eagerly awaiting a long-promised addition to your staff, but did not have the funding in this year’s budget?   Maybe you need to bring on an experienced technical resource that has only ever worked in Banking or Healthcare, and needs to come up to speed quickly on Energy Industry jargon and practices to fully participate in a new project.  Or, planning ahead, maybe you’ll be lucky enough to get one of those new college hires in a few months to help fill out your team and accomplish your 2018 goals.

Whatever the situation for your new hires, initially you are going to need to invest considerable amounts of your precious time indoctrinating the new recruits before you gain any benefits.  Consider giving them a good start with some structured Industry training.
 
Get into a habit of regularly scheduled review sessions that look at the essential operations of your business and let the experienced people answer questions for the new members that are trying to digest many things that veterans may take for granted and think everyone knows.

Let the new resources use their skills and energy to suggest new ways to accomplish goals, perhaps with new technology or skills they are bringing to the table.  

Get an unbiased facilitator knowledgeable in your markets and see where the conversation can take you!
 
Happy New Year from MarketWISE!
Tom Dougherty





There is a lot going on in the Energy Industry . . .

11/1/2017 6:46:14 PM -



Once each year the Connecticut and Massachusetts EBT work groups attempt to have one meeting in person usually hosted by one of the utilities.  This year they decided to have a joint meeting in Berlin CT, hosted by EverSource and there was a good response with Utilities, EDI/Billing Service providers and Suppliers all present. 

The group accomplished the review of numerous pending EDI change controls with the assignment of estimated completion dates and worked through a review and update of the CT EDI 810 document.  I strongly encourage all participants in the Deregulated Energy markets to participate in these meetings as the more input we receive, the better the quality of the standards process.
 
While planning my travel to Berlin CT for the EBT group meetings I became aware of another Energy related organization that was holding their meeting the day prior in nearby Cromwell CT.  This is the Connecticut Power and Energy Society and they were holding their 18th annual Conference and I decided to attend.  The program featured multiple panel discussions including:

  • Utility Executives on the Future of Energy,
  • End user companies describing their efforts and projects to implement Energy efficiency programs
  • Suppliers discussing some unique and progressive initiatives in the areas of energy efficiency and distributed generation. 
  • An update from the Department of Energy and Environmental Protection, on some challenges they are facing as they continue to drive environmentally responsible programs.

 
I also became aware of the New England Electronic Commerce User’s group, which is not Energy specific, but allows folks who deal the technical / EDI aspects of our industry to network and understand how other industries are operating and solving problems.  I had been a longtime member of a similar group in the Pittsburgh area and found it very beneficial. 

So, take a look around you and see what else is going on in your Industry and attend a conference that stretches the normal boundaries of your responsibilities.   Good to get out of the details occasionally and see where the big picture is heading.  

Send us a note and tell us about your favorite Conference or User group.
 
Thanks,
Tom





The Solar Eclipse More than What the Eye Could See . . .

9/1/2017 6:45:37 PM -



Monday August 21, 2017 will be a day long remembered for a very rare occurrence of a total Solar Eclipse that could be viewed from coast to coast across the United States.  This was perhaps a once in a lifetime opportunity for those fortunate enough to experience the event in the relatively narrow pathway from Oregon to South Carolina in which the total eclipse could be viewed.    If you missed it, like me, the next opportunity will be in 7 years so make your plans now!
 
For those of us in the Energy industry the most logical question was probably, what will be the impact on solar energy generation and the impact on the Energy Grid as the eclipse moved across the country?  It seemed obvious that the event might cause a reduction in Solar power generation, which it did, but here are a few other interesting things that impacted our energy world as well while all the attention was on the magnificent sky show!
 

  1. Solar generation was impacted by the eclipse but perhaps not as much as you might think.  First the path for the total eclipse was relatively narrow and really only passed over a few significant solar generation facilities.
  2. While solar generation was diminished so was the demand for electricity for the following reasons:
  • The eclipse caused a drop in temperature, which reduced the electric load normally needed to handle the need for increased use of air conditioning equipment throughout the afternoon. 
  • Many folks took a break from what they normally would have been doing to go outside and observe the great event.   This meant they were not consuming the amount of energy doing what they usually do, which resulted in a further drop on demand for electricity. 
  • There were requests for energy conservation made well ahead of the event which also helped to reduce demand as the solar resource generation was reduced.    
    Overall the event was well managed through reduced demand and the utilization of other generation resources.  Of course, this was aided by a lot of advanced notice and planning.
     
     
    So, while you were looking at one of the great natural events of our lifetime, there were a lot of Energy related activities playing out around the country, and a lot of efforts to make the solar eclipse a non-event for the energy grid!
     
    Congratulations to the grid management teams and to everyone who did get to experience the total solar eclipse.  Hope to see the next one in person in 2024.




State of New York’s Prohibition on Service to Low-Income Customers Continues to Move Forward

8/1/2017 6:45:02 PM -



For a number of months, there have been significant discussions on the ruling initiated by the New York Department of Public Service Commission (Commission) on ensuring Assistance Program Participants (APP) have rates that are fair and just.  For those of you who are new to the New York APP (Low-Income) Prohibition…
 
A Little History
The Commission created an Order on July 15, 2016 (known as the July Order) and re-addressed the Order on September 19, 2016 (September Order) to remove ESCO involvement with any Low-Income customer.  In a nutshell, the Commission argued that ESCO involvement with Low-Income (APP) customers was causing, in many cases, for those customers to be charged more than what the Utility would have charged.  The ESCOs did not agree with this finding and, in a few cases, began litigation against the Commission for the potential loss of Business.

On December 15, 2016 (December Order), the Commission introduced an updated Order indicating the ESCO could serve the APP market … “if they are willing to guarantee that they will save dollars for these customers and develop a process to ensure that the putative savings do in fact occur”.
 
Impact on ESCOs not wishing to participate in this APP process
This is likely the scenario for the majority of ESCOs.  As of July 26, 2017, Utilities must make available a list of APP Customers to which an ESCO can have access.  (Note: this is not an EDI process but a secured means for the ESCO to access the Utilities’ list of APP customers.  The format/access can differ for each utility.)

The ESCO will create an 814D to immediately DROP those APP Customers on the Utilities list.  If there is an existing contract between the ESCO and customer, the DROP would occur at the end of the Contract.

The Utility will create a BLOCK on the Customer’s account blocking further access to enrolling the customer.  When the APP customer’s status changes, such that they are out of the Low-Income status, the block will be removed allowing the Customer and ESCO to partner again.
 
Impact on ESCOs wishing to participate in this APP process
If the ESCO wishes to participate with the APP customers, the ESCO must submit a waiver to the Commission indicating that is their desire.  The Commission will review all waivers and provide their acceptance or rejection of the ESCOs waiver. (NOTE:  As of 7/27/2017, no waivers have been accepted…and, of the 200 plus ESCOs in New York, only 11 have submitted a waiver indicating their interest in participating).

If the Waiver is accepted by the Commission, the ESCO must have in place a process to determine if the price they have charged the APP customer is equal to or less than the price that would have been charged by the utility.  If the ESCO price is greater than the Utility price a CREDIT must be directed to the customer.
 
Impact on EDI Processing
If the Supplier does not submit a Waiver… The primary impact on the ESCO is to submit Drops (814D) for those customers identified by the Utility as APP (Low-Income) customers

If the ESCO submits and receives an approved waiver…  The impact on the ESCO is to compare their costs to the costs the Utility would have charged.  To address this, the ESCO would go through the following:

  • A 503 (Request) Transaction would be directed from the ESCO to the Utility for a specific period of time (up to two years of information)
  • The Utility would respond (via a 503 Response) with the pricing information specific to the dates requested by the ESCO
  • The ESCO would compare the returned information from the Utility against what the ESCO actually charged the Customer
    • If the ESCO charged LESS or EQUAL the amount the Utility would have charged the customer, no further action is needed (i.e. no credit is necessary)
    • If the ESCO charged MORE than the Utility would have, then a credit is due the Customer
      • The Customer Credit is delivered by the ESCO to the utility via the following:
        • If Bill Ready, the credit is sent via an 810 transaction                    
        • If Rate Ready, the credit is sent via an 814C transaction
        • If Dual Bill, the credit is sent via an 814C transaction
        • If Customer MOVED (no longer in Utilities jurisdiction), the credit is sent via an 814C transaction
          • In the above cases, upon receiving the transaction, the Utility will either process the transaction and apply the credit to the customers next bill   -OR-
          • Reject the 814C back to the ESCO
            • If the transaction is rejected by the Utility, it is the responsibility of the ESCO to direct the credit to the Customer

The above information reflects the high-level processes related to the New York Prohibition.  There are more specifics that are being addressed.  Should you have any questions on the above, or would like additional information, please let us know at… Info@mrktwise.com 





2017 - A Glass Half Empty or a Glass Half Full!

7/3/2017 6:44:25 PM -



Our end of June Energy Currents indicates that…WOW! We are half way through 2017! There has been quite a bit of reported market changes so far this year.

  • In Connecticut, we reported on Senate Bill 2 (SB2) and the need for accurate and complete information on the residential customer bill.
  • In Maryland, we reported on RM54 changes relative to 3 business day switching. 
  • In New York, we continue reporting on the Prohibition Order and the impact on Utilities, Suppliers and low-income customers. 
  • We have kept you aware of the various Change Controls being addressed within each state Working Group and the potential impact they may have. 
  • We have kept you posted on utilities implementing new internal systems that are permanent improvements but… sometimes have temporary inconveniences.

The remainder of 2017 does not look like it’s going to slow down.  So, we ask… Are you managing market change or, due to lack of lead time and understanding of the change details, is market change managing you?  Contact us about how MarketWise can be your partner with a WISE solution. 

          Watch - Monitor for upcoming changes in the market
           Interpret - Analyze the impact of the changes on your business
          Strategize - Develop implementation requirements
          Empower - Arm your team with timely information





What's Your Training Plan?

6/1/2017 6:43:55 PM -



We have made it to June again, graduation season, and new graduates everywhere are anxiously preparing for their first full time jobs.  Meanwhile, many of you have been painstakingly awaiting a long-promised addition to your staff to deal with current and planned work load the remainder of this year. Maybe you’ll be lucky enough to get one of these new college hires to help fill out your team and accomplish your goals.  Or maybe you’ve brought on an experienced technical resource that has only ever worked in Banking or Healthcare.  Whatever the situation for your new hires, initially you are going to need to invest considerable amounts of your precious time indoctrinating the new recruits before you gain any benefits.

So, what is your plan to get your new employees up and running as quickly as possible?  You could give them stacks of materials to read their first week and then begin taking them to meetings with you, saying,  “Just listen and take notes and I’ll explain what you don’t understand after the meeting”.    You remember those meeting when you first got into the industry, right?

“Ok, we are getting together today to talk about our sales campaign to enter Electric and Gas Markets in both PJM and NEISO.  We will be concentrating on the Rate Ready markets that are currently offering POR,  but we are also interested in understanding which utilities are providing bill quality interval usage both pre and post enrollment, to support our TOU rate products.   Additionally, we need to get up to speed on what is in place and being discussed around Net Metering, including the registration and settlement processes.  Finally, we need to review our NY business and decide if we should seek waivers to continue to serve APP customers and implement the EDI 503 credit process, or be prepared to generate drops upon receipt of Utility files identifying APP customers.  Any questions?”

Luckily, there is a better way to introduce your new hires to the industry.  MarketWISE offers Deregulated Electric and Gas 101 training courses, which can be delivered in person or via electronic meeting to a group or an individual.  We can also conduct more detailed training specific to individual markets to prepare teams for new market entries.  Let’s discuss a training plan that meets your needs and budget to help you get the most from your team this year.


Tom Dougherty  -  Owner MarketWISE
email - tdougherty@mrktwise.com





The Unsung Heroes of Implementing Change in Deregulated Energy Markets

5/1/2017 6:43:10 PM -



What drives change in deregulated markets and how do all the systems and processes get adjusted, tested and implemented?   Whose job is it to implement the changes resulting from Regulatory orders, Utility system upgrades, and new technology?  Once the discussion at the legal level is over, resulting in a decision to implement, the EDI/EBT workgroups enter the process.

These teams are made up of representatives from Utilities, Suppliers, EDI and Billing Service Providers, Public Utility Commissions and various Consulting and Software firms.  They look at the business and technical aspects of the change and break it down into data requirements, changes to existing transactions and processes or creation of new transactions and processes when required.  And to the credit of these industry warriors it is done in an open environment, with all parties welcome to participate and work towards the best implementations to meet the needs of all stakeholders.  Some folks have been participating in this process for nearly 20 years, and much of this work is done in addition to their fulltime jobs.  This strong commitment to the deregulated energy industry enables continued growth and improvements and an ongoing Choice to the ultimate end use customers of the electricity and gas.

There are too many folks involved in this effort for me to name and I would hate to slight someone by leaving them unmentioned, but those of us who do this work know them well and are grateful for their efforts. 

If you work in the Deregulated industry, regardless of the entity you work for or the function you support, come and see how individuals can come together and voluntarily invest themselves to create high quality solutions that meet the letter of the law.   This is done with a spirit of cooperation to work with folks with whom they may be ideologically at odds, and who may be direct competitors in the market place, but is done most importantly for the good of the industry. 

There are many topics currently being discussed in the workgroups including Net Meter Aggregation, Accelerated Switching procedures, Historical interval usage standards, EDI Implementation Guideline updates and much more.  Please join us in this important work!

Tom Dougherty  -  Owner MarketWISE
email - tdougherty@mrktwise.com





Maryland Aggregate Net Energy Metering

1/30/2017 6:42:14 PM -



Change is brewing in Maryland to expand opportunities for consumers to benefit from renewable energy projects.  Maryland has implemented a Net Meter Aggregation program known as Aggregate Net Energy Metering (ANEM), also referred to as Virtual Net Metering (VNM) in some other states.  Some meter aggregation programs allow a single customer with multiple meters, and therefore multiple utility accounts, to offset their aggregate load with a single renewable energy system.  ANEM enables multiple customers, with multiple meters and associated utility accounts, to receive the benefits of a single renewable energy system.  Customers have ‘shares’ or interests in a single renewable energy system, and the net metering credits are distributed across those multiple customers’ bills.
 
Suppliers and Service providers need to prepare for ANEM implementation in Maryland.

New billing data requirements and formats are required to enable the tracking and distribution of net metering credits to the participating customers.  The requirements are established by the Public Service Commission, and the implementation details and standards are discussed and designed by the MD EDI Workgroup.  Special meter read formats have been adjusted and are in the process of being approved and incorporated into the MD EDI Implementation Guidelines.  The data formats account for some utility specific requirements and are further influenced by the capabilities of the installed meter at the customer location.  Some meters record both consumption and generation and make both available for billing, while others record only the net difference of the consumption and generation.  Also, due to billing system constraints, one Maryland Utility can currently send only net usage regardless of the meter equipment in place.  Supplier EDI and billing systems need to handle the resulting meter reads accordingly.

There are also Utility specific requirements around the formatting of meter reads and the order of the distribution of credits to customer accounts that have Time of Use (TOU) rates.  These details are still being determined by the EDI Workgroup and will be added to the MD EDI Implementation Guidelines as soon as they’re approved by the group.  Things get particularly interesting (and complicated) when generation exceeds consumption and the excess generation is ‘banked’ for use in future billing periods.  It is essential that Suppliers and Service providers understand the nuances of these programs.

In summary Net Metering projects offer great opportunities for market participants, and at MarketWISE we anticipate seeing significant progress and new product offerings across many markets.  However, a thorough knowledge of program requirements and operational preparation is required to deliver the full value to their customers, while maintaining regulatory compliance.

Tom Dougherty -  MarketWISE

 
This article is based on information from MD PSC documentation as well as personal experience as an active member of the MD EDI workgroup.
Report on the Status of Net Energy Metering In the State of Maryland:  http://www.psc.state.md.us/wp-content/uploads/2014-MD-PSC-Report-on-the-Status-of-Net-Energy-Metering1.pdf
 
A Guidebook on Net Metering in Maryland: http://universityparksolar.com/Meter/MD%20NM%20Guide%20DRAFT%206-7-2013.pdf





Value Beyond Price

12/1/2016 6:41:41 PM -



 

How can suppliers differentiate themselves beyond having the lowest price in extremely competitive deregulated markets?  One way is through operational excellence.  This requires timely execution of enrollments, drops and customer information maintenance such as rate changes and tax exemption status to ensure accurate billing.  Also to closely follow developments in changing standards for net metering and the increased need for interval usage.  The key to operational excellence is to stay informed on the everchanging market requirements to identify regulatory changes as early as possible, to understand the full impact on systems and processes and to provide as much lead time as possible to operational teams to prepare and validate effective change management. 
 
Since starting MarketWISE, I have had little time for golf, however I can equate operational excellence to my constant struggle to break 100 on a challenging course.  My inability to avoid the double digit hole is much like a billing error that leaves little chance to meet customer expectations if cashflow has been compromised.  It takes a lot of birdies to compensate for a 10.   Stay under Par by staying informed and managing market changes!   Ask us how MarketWISE can help!





November Election Impact on Energy Markets

10/31/2016 6:39:34 PM -



In order to stay competitive in today’s markets, we not only have to track change within existing deregulated markets, but also monitor changes in legislation that open new markets or in some cases could roll back existing deregulation programs.  Being prepared for early entry into a new market or taking appropriate action in declining markets is essential.  So, what changes might be initiated per the November 8, 2016 elections?  One significant even is occurring in Nevada!
 
Nevada vote on Deregulation

Nevada voters will weigh in on a ballot measure to give consumers a choice in who they buy their electricity via the creation of a competitive retail power market.  The measure has support of both democratic and republican backers and is being coordinated by the group “Nevadans for Affordable, Clean Energy Choices”.   Polls indicate that about 70% of Nevadans support the measure.  Advocates believe it will lead to lower electric prices and cheaper renewable energy options.

The state’s AFL-CIO unions, representing around 200,000 members are opposed to the ballot measure warning of higher Utility bills and loss of Utility jobs.  The major Nevada Utility, NV Energy who currently provides around 90% of the state’s electricity is officially taking a neutral position on the ballot measure, but has proposed a set of guidelines for the development of the retail market deregulated policies, should the measure pass. 

If the ballet measure is approved, the State Legislature will be required to draft rules for the retail power market, and then the proposed program will need to be voted on again in 2018.  If approved, it would result in a competitive electricity market by 2023.