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February 15, 2002
NEM Annual Membership Meeting and National Restructuring

A number of very prominent speakers and PUC Commissioners have agreed to speak at NEM's Annual Membership Meeting and National Restructuring Conference to be held June 20 and 21, 2002 at the Marriott Metro Center in Washington, DC. A quick registration form is hotlinked here for your convenience. An electronic brochure is also hotlinked here.

Please contact NEM headquarters if you are interested in sponsorship or table-top space at the conference, as space will be limited.

NEM Meetings with Chairman Wood and Commissioner Brownell

NEM will hold meetings with Commissioner Brownell on technology platforms for RTOs and other related technologies within the next few weeks. Proposed dates for the meeting are March 6, 2002, at 1PM EST and March 20, 2002, at 1PM EST. NEM members planning to attend should indicate their preference to headquarters ASAP. NEM's informal discussion with Chairman Wood on what it will take to make markets work will be held May 1, 2002, at 1PM EST. Information on the final dates, times and locations of these meetings will be sent to those members that responded to the previous invitation to participate.

NEM Legislative Briefing Conference Call and Meeting

NEM will conduct a legislative briefing conference call and meeting on February 22, 2002, at 10:30AM EST. NEM members with Washington representatives that want to participate in person should contact headquarters by close of business February 19, 2002, so that we can make adequate arrangements for a meeting place. The dial-in number of the conference call is 303-248-1820, and the passcode is 428358.

NEM Energy Risk Valuation Management and Financial Accountability Taskforce

NEM will conduct the first meeting of its Energy Risk Valuation Management and Financial Accountability Taskforce on February 22, 2002, at 2PM EST. All members and prospective members are encouraged to participate. The dial-in number for the call is 303-248-1820, and the passcode is 428358.

NEM Member Business Opportunity

One of the leading suppliers of office equipment and services located in Cologne, Germany is seeking a 50MW barge-mounted generator for a long-term lease. Interested members should contact headquarters ASAP.

FERC Orders Investigation of Electric and Natural Gas Price Manipulation in the West

FERC has directed Staff to conduct a fact-finding investigation of whether any entity, including Enron, manipulated short-term prices in electric and natural gas markets and whether undue influence was exercised over wholesale prices in the West beginning January 1, 2000, that resulted in potentially unjust and unreasonable rates for long-term power sales contracts. The full text of the Order Directing Staff Investigation is available on the NEM Website. NEM is urging caution. See article entitled, "FERC Investigation of Enron role in Calif. Crisis Gains Steam."

Conference on Allocation of RTO Characteristics and Functions

FERC Staff will convene a conference on February 19, 2002, at 9AM to discuss the allocation of RTO characteristics and functions between separate organzations within an RTO region. National, Midwestern, Western and Eastern panels will address the following issues: 1) how should functions/characteristics that are shared between separation organizations in an RTO be apportioned; 2) which functions should be administered over as large a region as possible and which functions can effectively be administerd at a sub-regional level; 3) should functions be distinguished as those that relate to operation and administration of the grid versus those that relate to operation and oversight of markets for trading; and 4) is an organization's business model or incentive structure relevant to which functions it should undertake. The full texts of the Notice of Technical Conference and Attachments are available on the NEM Website.

FERC-NARUC Meetings on Transmission Tariffs and Capacity Reserves

FERC convened meetings at this week's NARUC conference to solicit state Commissioner comments on FERC's discussion papers on non-discriminatory transmission tariffs and ensuring adequate capacity reserves. The full texts of FERC's Papers on Non-Discriminatory Transmission Tariffs and Ensuring Adequate Capacity Reserves as well as a Summary of the FERC-NARUC Meetings are available on the NEM Website.

Proposed Order in ComEd Proceeding Advances NEM's Position in Retail Market Design

The ALJs in ComEd's delivery services proceeding have issued a proposed order adopting many of NEM's arguments. The proposed order finds that: 1) rates should be based on embedded costs because this approach advances economic efficiency and sends economically correct price signals; 2) single bill option credits should be based on embedded costs, and ComEd's proposed avoided-cost methodoloy should be rejected because it would result in minimal credits and not be reflective of the actual long-run savings that should accrue to ComEd if it better utilizes its freed-up billing capacity; 3)metering service provider credits should be based on embedded costs; and 4) the implementation of electronic signatures should be addressed in a workshop. Exceptions to the Proposed Order are due February 25, 2002, and Replies to Exceptions are due March 4, 2002. The full text of the Proposed Order is available on the NEM Website.

NEM Requests Embedded Cost Unbundling in Consumers Gas Proceeding

NEM filed a brief in the Consumers gas unbundling proceeding urging the Commission to implement full allocated embedded cost-based unbundled rates and to explicitly permit the rendering of competitive services by competitive suppliers. Staff argued in testimony that new unbundled competitive services should not be implemented because alternative suppliers have not made offers to render such services, and Consumers renders billing and metering services under the terms of its recently approved retail access program. NEM argued that the provision of embedded cost-based unbundled rates would encourage private investment in these services in the state. NEM also argued that consumers need adequate price signals based on the utility's fully allocated embedded costs in order to shop. The full text of NEM's Brief is available on the NEM Website.

PSC Issues Status Report on Electric Competition

The PSC submitted a Status Report on Electric Competition to the Governor and legislature. The report says electric competition is in its infancy due in part to factors such as infrastructure limitations and national and statewide economic difficulties. The report states that electric competition should improve in the coming year due to additional in-state generation, transmission system enhancements, and the operation of the RTO. The full text of the Status Report on Electric Competition is available on the NEM Website.

New York
ConEd Electric Phase 5

NEM will host a conference call on the ConEd electric phase 5 proposal on February 19, 2002, at 3PM. The dial-in is 303-248-1820, and the passcode is 428358. Topics for discussion will include the effect the proposal will have on the major resource allocation that will be required to review the utilities embedded cost studies over the coming months.

Competitive Metering Meeting

Staff has released minutes from the competitive metering meeting convened on January 24, 2002. The minutes report that the major issue discussed was MDSP access to the utility meter. The utilities voiced concern over programming costs to provide information required by the utility, ESCOs, and customers, data errors, and dispute resolution. MDSPs indicated the issue of access to the meter must be resolved in order to provide billing determinants to utilities and ESCOs. The minutes report that according to the MDSPs/MSPs, they are not operating in NY because of the requirement to maintain or have access to a meter testing facility in NY, low back-out credits, no EDI/VEE format, and the lack of access to metering data. The full text of the Competitive Metering Meeting Minutes is available on the NEM Website.

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