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August 23, 2002
APS Energy Services and Pinnacle West Capital Corporation Elected to NEM Executive Committee

NEM is pleased to announce that APS Energy Services and Pinnacle West Capital Corporation have been elected to NEM's Executive Committee. APS Energy Services is the unregulated Energy Service Provider subsidiary of Pinnacle West Capital Corporation, an Arizona-based Fortune 500 company with consolidated assets of $8.0 billion and annual revenues of $4.6 billion. Vicki Sandler, President of APS Energy Services, and Martin Shultz, Vice President of Government, Pinnacle West Capital Corporation, will represent the companies within NEM.

FERC Briefing and Conference Call on Standard Market Design NOPR

We have confirmed September 17, 2002, at 2PM for a meeting with the FERC Staff responsible for the Standard Market Design GIGA-NOPR to be held at FERC headquarters in Washington, DC. Please confirm your attendance at the FERC meeting with NEM headquarters ASAP as they must get us a room big enough for our members, and we must clear you through security.

Additionally, we have reserved a bridge for September 5, 2002, at 2PM EST for a follow-up call on the Giga-NOPR. The purpose of the call will be to identify specific issues and NEM recommendations for NEM comments on the NOPR. A very rough draft list of issues will be circulated prior to the call--please mark your calendars. The conference call number is 703-788-0600, and the passcode is 209353.

NEM Meeting on FERC GIGA NOPR on Standard Market Design, Credit, Risk, Financial Governance, State Retail Programs and Consumer Aggregation Rights will be Held September 26 and 27, 2002, in Chicago

NEM's Executive Committee will hold an important meeting to review, identify and prioritize issues and vote on NEM's position on the FERC Giga-NOPR, RTOs and Standard Market Design, Next Steps to Develop and Implement Industry Standards for Risk Valuation, Management and Financial Governance as well as review and prioritize NEM's positions on State Retail and Technology-related issues on September 26 & 27, 2002, in Chicago. The meeting will be open to all NEM members and prospective members. A brochure and quick registration form are hotlinked here for your convenience. A listing of area hotels is also hotlinked here. Please be sure to reserve a hotel room and RSVP so that we can plan to have enough room and meals.

NEM has reserved Union Train Station in downtown Chicago for this meeting. Please let us know if you would like to break out into two or more subject matter groups to focus on Wholesale and Credit/Risk Management issues separately from the Retail/Consumer Aggregation issues during the day of September 26, 2002.

NEM Policy Chairs will lead the discussion on all issues. Your attendance and input on these important issues is encouraged and will be appreciated.

NEM's Annual Membership Meeting and National Restructuring Conference for 2003 - Invitation for Speakers, Sponsors and Exhibitors

Next year’s Annual Membership Meeting and National Restructuring Conference will be held April 3 and 4, 2003, at the Hyatt Regency on Capitol Hill. We have arranged for additional space to accommodate more attendees with a special room for exhibits and added sponorship opportunities. Breakfast and all breaks will be in the exhibition room that is adjacent to and visible from the general session. A hotlink for signup is provided here.

Members who wish to be speakers, sponsors or exhibitors should contact headquarters immediately as we will be starting our worldwide advertising shortly. The exposure and attendance should be even better than this year.

NEM Winter Executive Committee Meeting to Be Held in San Diego on January 16 and 17, 2003

NEM's Winter Executive Committee Meeting will be held in San Diego at Sempra's headquarters on January 16 and 17, 2003. This meeting will be for NEM Executive Committee Members only. As in the past, the Executive Committee will establish the policy positions and priorities for NEM for the coming year.

All Executive Committeee Members are requested to attend. An agenda will be sent out prior to the meeting.

NEM Member Publication Opportunity

NEM members interested in submission of articles for publication in industry publications should submit their articles to NEM headquarters no later than Tuesday, August 27, 2002.

NEM Member Opportunity

NEM has made an arrangement with Utility Spotlight, the weekly utility newsletter, whereby they have agreed to provide NEM members with four weeks of complimentary issues. Utility Spotlight has also agreed to offer NEM members a special subscription rate of $497, a $100 savings from the list price. Please contact Lisa Colombi at Utility Spotlight's circulation sales office at 1-800-750-9057 with your questions. You may also contact them at

ANOPR on Small Generator Interconnection Procedures and Agreements

The Commission issued an ANOPR in which it proposed to adopt standard small generator interconnection agreements (IAs) and interconnection procedures (IPs) applicable to all public utilities that own, operate, or control transmission facilities under the Federal Power Act. The Commission proposes to adopt IAs and IPs applicable to small generators up to and including 2 MW and to units over 2 MW up to and including 20 MW.

The Commission will convene conferences for parties to discuss the proposed IAs and IPs. The initial meeting will be held September 9-10, 2002, at 10AM, the purpose of which is the formation of working groups to develop consensus IAs and IPs. The Commission is also interested in trying to incorporate NARUC's draft distributed generation interconnection procedures and agreement. Comments are due November 4, 2002. The full texts of the ANOPR, Meeting Notice and NARUC's Model Distributed Generation Interconnection Procedures and Agreement are available on the NEM Website.

Standard Market Design Data and Software Standards Conference

The Commission has announced a follow-up conference on standard market design data and software standards to be held October 3, 2002, at 9AM at Commission headquarters. The purpose of the conference is to examine how to develop SMD software that is compatible and consistent across regions and vendors, to discuss the development of model test problems, and to discuss whether the work of the Ontario Energy Board would be a useful starting point. The full text of the Notice of Follow-Up Staff Conference is available on the NEM Website.

PJM South Stakeholder Meeting

A stakeholder meeting to address the efforts of PJM and Dominion to form PJM South will be held August 29, 2002, at 9:30AM at the Jefferson Hotel in Richmond, Virginia. The purpose of the meeting is to provide a report on Dominion's progess with PJM and for attendees to raise comments and concerns. For additional information go to and search keyword "pjmsouth."

FERC Filing to Force Compliance with CAISO Board Requirements

FERC filed with the District Court of D.C. to require CAISO to comply with FERC's Order requiring it to institute an independently chosen, non-stakeholder Board. FERC asserts that the continued operation of the current CAISO Board as purportedly authorized by California law is illegal under the Federal Power Act and FERC orders. The full text of the FERC Filing is available on the NEM Website.

Proceeding on Detroit Edison Affiliate Standards

In light of the Michigan Court of Appeals recent decision on the Commission's affiliate guidelines, the Commission has opened a proceeding to examine whether affiliate guidelines should be adopted for Detroit Edison and what the terms of such guidelines should be. Interventions are due September 12, 2002, and a prehearing conference will be held September 19, 2002. The full text of the Order is available on the NEM Website.

Commission Approves SEMCO Gas Choice Program

The Commission has approved the expansion of SEMCO's gas choice program. The Commission approved a GCR factor of up to $3.2728 per Mcf for the month of April 2002 and up to $3.8280 per Mcf from May 2002 through March 2003 for SEMCO. SEMCO can also charge a capacity demand charge of $0.3028 per Mcf to all gas choice customers. Participation in the program is initially open to all non-residential customers and up to 78,000 residential customers. On April 1, 2003, the program expands to 117,000 residential customers, and on April 1, 2004, all customers are eligible to participate. The full text of the Order is available on the NEM Website.

New York
Rulemaking on Revision to Electric Competitive Metering Manual

The Commission has issued a rulemaking to examine proposed revisions to the electric competitive metering manual. Comments are due October 6, 2002. The full texts of the Notice of Proposed Rulemaking and Electric Competitive Metering Manual are available on the NEM Website.

Rulemaking on Wholesale Market Participant Code of Conduct

The Commission initiated a rulemaking proceeding on the development of a code of conduct for wholesale market participants. The Commission issued a set of questions for comment as follows: 1) what should be the purpose of the code of conduct; 2) what are just and equitable principles of trade to apply to the wholesale electric market; 3) should "gaming" and "market manipulation" be defined in the code of conduct, and if so, how; 4) should "gaming" be defined as "market behaviors that allow one or more Market Participants to take advantage of the rules and procedures set forth in the Market Protocols to the detriment of system reliability, market stability and efficiency, and financial settlements with other Market Participants;" 5) what behavior should be subject to the code of conduct; 6) how can harm to the market be assessed; 7) what trader activities are harmful to the market; 8) what penalties and sanctions should be applicable to code of conduct violations; 9) what recordkeeping standards should be adopted; and 10) what role should ERCOT play in enforcing the code of conduct. Comments are due September 30, 2002. The full text of the Questions for Public Comment is available on the NEM Website.

Commission Adopts Rules on Competitive Metering and Consolidated Billing

The Commission issued Orders adopting rules on competitive metering and consolidated billing rendered by a competitive supplier. The competitive metering rules require the utilities to offer customers or their competitive service provider with access to unedited interval data. The rules also require that upon customer request, the utility must provide interval metering service at the net incremental cost above basic metering service. The Commission also directed the competitive metering work group to examine: 1) meter ownership for large customers; 2) whether implementation of full competitive metering for residential and small business customers is in the public interest; and 3) the establishment of time-of-use rate programs for residential and small business customers.

The Commission also approved rules for consolidated billing service offered by competitive service providers (CSPs). The rules provide that: 1) CSPs must provide advance written notice to the Commission and the utility of its intent to offer consolidated billing services; 2) CSPs must obtain financial security for liability associated with collection and remittance of state, local, and special regulatory consumption taxes; 3) consolidated billing will be performed under a bill ready protocol and does not require to billing party to buy the accounts receivable of the non-billing party; and 4) a customer cannot be disconnected for nonpayment of unregulated service. The full texts of the Competitive Metering Order and Consolidated Billing Order are available on the NEM Website.

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