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Dr. Jonathan Raab, Raab Associates, Ltd. and MIT RaabAssociates March 3, 2009

Using 3 rd Party Neutrals to Assist Stakeholders to Formulate New Energy Related Policies and Resolve Energy Related Disputes in the Northeast. Dr. Jonathan Raab, Raab Associates, Ltd. and MIT www.RaabAssociates.org March 3, 2009

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Dr. Jonathan Raab, Raab Associates, Ltd. and MIT RaabAssociates March 3, 2009

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  1. Using 3rd Party Neutrals to Assist Stakeholders to Formulate New Energy Related Policies and Resolve Energy Related Disputes in the Northeast Dr. Jonathan Raab, Raab Associates, Ltd. and MIT www.RaabAssociates.org March 3, 2009 The Northeast Chapter of the Energy Bar AssociationDay Pitney LLP--One International Place, Boston

  2. Spectrum of ADR Energy Applications Downstream Upstream Contractual Disputes Broad Policy Development (e.g. strategies to encourage new sources or markets) Complex Disputes Facility (Re) Licensing) Dispute Settlements Rulemaking to Implement Policies Exchange of Information on Energy Issues with the Public Adjudicatory Proceedings to Apply Rules Interested Parties Fewer Many

  3. Major Northeast Electricity Related Matters Using 3rd Party Neutrals:(2000-2009) CONSENSUS SEEKING MEDIATION CONSENSUS BUILDING FACILITATION DOWNSTREAMApplying Policies & Laws UPSTREAM Forming Policies & Laws

  4. NE Electricity Restructuring Roundtable • Substance • Unique forum to discuss “current” restructuring issues in New England. • Process • 109 Roundtables held so far! Have been meeting 6-10 times a year for 15 years in Boston. • Roundtable averages over 100 participants per session, with listserv of over 1,500 New England stakeholders. • Sponsored by 25 organizations, run by Raab Associates hosted at Foley Hoag offices • 2/13/09 Roundtable on “Integrating Electric Vehicles into a Smarter Electric Grid” drew 175 people and panel included FERC Commissioner, Better Place, Northeast Utilities, Xcel Energy, UofDE Prof—Blogged on NY Times Energy Page • http://www.raabassociates.org/main/roundtable.asp

  5. Cape Wind • Substance • Proposal to build largest offshore wind project in the world in MA—130 windmills, 400 MW. • Developed stakeholder process NOT to seek consensus but to better prepare organizations to participate in formal environmental impact statement process run by Corps of Engineers. • Explored substantive issues and stakeholder perspectives. • Process • Hosted by MA Technology Collaborative, facilitation team led by Raab Associates. • Stakeholder group of 24, plus resource group of 25 state/federal agencies, academics, and others. • 7 full day meetings: October 2002 to June 2004 • http://wind.raabassociates.org/

  6. PJM Contract Disputes (Mediation/Arbitration) • Substance • Disputes between members and PJM, or among members on a wide rang of contractual, tariff, and other business disputes. • Process • Time-constrained mediation required for all disputes. • If mediation does not successfully resolve dispute, binding arbitration is required for disputes valued at less than $1 million. • PJM maintains a list of qualified mediators and arbitrators. Raab Associates has mediated four cases for PJM and its members.

  7. New England Demand Response Initiative (NEDRI) • Substance • Developed 38 major recommendations for incorporating demand response into retail and wholesale markets in New England. • Covered short-term price-responsive load, retail pricing and metering strategies, reliability-driven DR, and longer-term energy efficiency investments. • Process • Included representative from 45 state and federal agencies, suppliers, consumers, and environmental organizations. • Met for 19 days in plenary session in 2002 and the first half of 2003 • Joint project with the Regulatory Assistance Project, which managed the technical consulting effort and Raab Associates, which managed the stakeholder process. • Funded by US EPA, US DOE, ISO-New England, the New York ISO, and the Energy Foundation • http://nedri.raabassociates.org/index.asp

  8. Gas Initiative-(RGGI) Regional Greenhouse • Substance • Developed a greenhouse gas cap and trade system for electricity sector in 10 Northeast and Mid-Atlantic states • Reduces GHG emissions by 10% by 2020, allows for offsets, and establishes a public benefits fund. • Process • Raab Associates designed and ran 24-member regional stakeholder group to provide “advice” and act as “sounding board” for states. • Meanwhile, states negotiated MOU in separate, parallel process, signed in December 2005 by seven states (NY, NJ, VT, NH, CT, DE, and ME) and later joined by MD, RI, and MA. • www.rggi.org

  9. Energy Standard RI RES (GHG) Rhode Island Renewables • Substance • RES (RPS) requires 16% of all electricity sold in Rhode Island to come from renewable energy resources by 2020. • RI PUC regulations specify all the details after RI Legislation which is one of 52 options from 2002 RI GHG Plan developed by Stakeholders to meet NE Governors’/Eastern Canadian Premiers’ 2010 and 2020 GHG targets. • Process • RI PUC develops regulations through negotiated rulemaking process. • Over 15 parties, Raab Associates mediated • Agreed on 41 page report including draft regulations • Resolved all but a very few issues, that were decided by PUC before issuing final rules in December 2005. • http://www.raabassociates.org/main/projects.asp?proj=49&state=Services

  10. Docket 7081 (VT NTA) VT Non-Transmission Alternatives • Substance • VT PSB opens docket to develop new transmission planning and implementation process that fully evaluates non-transmission alternatives in a timely manner and on an even-handed basis (least cost IRP for the transmission system) • Process • Dozen parties, mediated by Raab Associates • Over 20 meeting days 2005/2006 • MOU among all parties but one, and a few small Munis

  11. Generation (MA DG) Massachusetts Distributed • Substance • MA DTE collaborative to generate interconnection standards, polices, and procedures that would be uniformly applicable to all Distribution Companies • March 2003 filed detailed interconnection standards report and interconnection tariff. • Collaborative continued and filed follow up report in June 2006. • Process • 22 Stakeholders from industry, distribution companies, governmental and quasi-governmental agencies, customers, and public interest groups • MA Technology Collaborative hosted, Raab Associates mediated. First phase: half year, 12 plenary meetings and working groups. • http://dg.raabassociates.org/

  12. NE Locational Installed Capacity /Forward Capacity Market (LICAP/FCM) • Substance • FERC required changes to New England capacity market that would provide better incentives to maintain existing capacity and to develop new capacity • Settlement developed on FCM based on auction process and includes transition payments. Demand-side can also receive capacity payments. • Process • FERC Judge Brenner mediated 30 days of negotiations between October 2005 and March 2006. • Of 115 parties, 61 signed settlement, 8 opposed (including MA and ME), and 46 were silent.

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