STEEL MANUFACTURERS ASSOCIATION Annual Members Conference FEDERAL ENERGY ISSUES Jay Brew Brickfield, Burchette, Ritts & Stone, P.C. May 2007
Brickfield, Burchette, Ritts & Stone, P.C. May 2007 SMA Focus on Federal Energy Policies Affecting National Electric Reliability Standards and EAF Responsibilities Reforming Balancing Standards Compliance Registry FERC Conference on Wholesale Electric Markets Demand Response Policies Energy and Climate Change Legislation
Brickfield, Burchette, Ritts & Stone, P.C. May 2007 SMA Efforts: Early 2007 Participation in FERC Power Markets Conference Petition for Rehearing on Reform of Energy Imbalance Rules Voting on Proposed NERC Reliability Standards (Balancing) Comments on Demand Response as an Ancillary Service (Reliability Rulemaking) Protest to Preserve PJM Day Ahead Demand Response Program (Supporting Gerdau)
Brickfield, Burchette, Ritts & Stone, P.C. May 2007 Demand Response Policies FERC Commissioner Wellinghoff: “Institutionalizing demand response should be a goal of FERC, so industrial customers can build business plans around demand response payments as an assured part of their revenue streams.”“Institutionalizing demand response should be a goal of FERC, so industrial customers can build business plans around demand response payments as an assured part of their revenue streams.” Demand Response and Reliability StandardsDemand Response and Reliability Standards Energy Efficiency Legislation / Revenue “Decoupling” for UtilitiesEnergy Efficiency Legislation / Revenue “Decoupling” for Utilities The Need for Price Transparency and DisclosureThe Need for Price Transparency and Disclosure
Brickfield, Burchette, Ritts & Stone, P.C. May 2007 Upcoming Issues - Federal NERC Revised Reliability Standards on Balancing Resources and Demand Development of NERC’s Compliance Registry Price Disclosure and Transparency in Wholesale Electric Markets Federal Legislation Energy Efficiency and Demand ResponseEnergy Efficiency and Demand Response Revenue Decoupling for UtilitiesRevenue Decoupling for Utilities Renewable Portfolio StandardsRenewable Portfolio Standards Climate Change PoliciesClimate Change Policies FERC Regulation Service and Energy Imbalance Policies
Brickfield, Burchette, Ritts & Stone, P.C. May 2007 Upcoming Issues - State Level Revenue Decoupling/ Energy Efficiency Regulation Charges Aimed at EAF Loads Generation Diversity / Fuel Costs / Guaranteed Utility Cost Recovery Base Rate Increases for New Infrastructure Construction
Brickfield, Burchette, Ritts & Stone, P.C. May 2007 Recent Trends In Natural Gas & Electric Prices