NEM is pleased to announce that WPS Energy Services Inc. has been elected to the Executive Committee. WPS Energy Services Inc. offers nonregulated natural gas, electric, and alternate fuel supplies as well as energy management and consulting services. WPS Energy Services Inc. will be represented by Mark A. Radtke, President, Dan Verbanac, Senior Vice President, Boris A. Brevnov, Vice President - Asset Management, Betty Merlina, Vice President - FSG Energy Services Division, and Marc D. Hess, Power Marketer, within NEM.

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 the general session. The Agenda is hotlinked here for your convenience. A registration form is hotlinked is hotlinked here for your convenience.

NEM will convene a conference call of the Taskforce on Credit, Risk Management and Financial Accountability on January 27, 2003, at 2PM EST. The purpose of the call is to finalize the work of the Taskforce entitled, "Solutions to Improve the Creditworthiness, Reliability, Transparency and Financial Credibility of the Energy Industry." The dial in number is 703-788-0600, and the passcode is 209353.

NEM's Winter Executive Committee Meeting was held last week in San Diego. Many thanks to Sempra Energy Solutions for hosting the meeting. Executive committee members identified and prioritized key federal and wholesale, retail, and technology issues for NEM address in the coming year. The full text of the Executive Committee Meeting minutes are available from NEM headquarters.

NEM members that wish to have an article published in Harts magazine should contact headquarters ASAP.

NEM members have been extended a special offer to receive a 20% discount on a new book entitled, "Power Market Risk: How to Survive (& Prosper) in Crazy Times." The book is designed to help power market executives become knowlegeable about risk management principles and practices. The full text of the Special Offer is available on the NEM Website.

NEM has been approached by the Power Trading Corporation (PTC) of India to meet and discuss power trading issues. PTC is a newly formed organization with the responsibilities of purchasing and selling power and interregional transmission in India. PTC would like to promote the exchange of power with neighbors and develop a power market in the future. PTC will be in the Washington, D.C. area on January 29-30, 2003. NEM members interested in meeting with PTC should contact headquarters ASAP.

The CCROs released a standardized "Clearing, Novation and Release Agreement," to clear energy transactions on the various clearinghouses and other multilateral trading platforms, including EnergyClear Corporation, IntercontinentalExchange, New York Mercantile Exchange and VMAC. The full text of the Novation Agreement is available at: http://www.ccro.org/novation.pdf.

SEC proposed a new rule to implement the Sarbanes-Oxley Act of 2002 that would require the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that is not in compliance with the audit committee requirements established by the Act. The requirements relate to: the independence of audit committee members; the audit committee's responsibility to select and oversee the issuer's independent accountant; procedures for handling complaints regarding the issuer's accounting practices; the authority of the audit committee to engage advisors; and funding for the independent auditor and any outside advisors engaged by the audit committee. The standards are meant to allow audit committees to be more effective in protecting shareholder interests and to address the risk that management self-interest may diverge from shareholder interest.

The SEC also proposes to exempt from the proposed rule the listing of a security futures product cleared by a clearing agency that is registered under Section 17A of the Exchange Act or exempt from registration under Section 17A(b)(7) of the Exchange Act. The SEC proposes a similar exemption for the listing of standardized options issued by a clearing agency registered under Section 17A of the Exchange Act.

The new rule is proposed to become effective by April 26, 2003, and the new requirements would be required to be operative by the national securities exchanges and national securities associations no later than the first anniversary of the publication of the final rule in the Federal Register. The SEC is seeking comments on the proposed rule by February 18, 2003. The full text of the Proposed Rule is available on the NEM Website.

FERC and the CFTC have scheduled a joint technical conference for February 5, 2003, to explore the feasibility of utilizing clearing to address credit issues in today’s energy markets. The forum will focus on credit and liquidity issues affecting energy market participants and will examine possible solutions, including the utilization of CFTC-regulated clearing facilities. A panel including credit analysts, clearing organizations registered with the CFTC, and energy market participants will discuss the issues. The full text of the Agenda for the Joint Conference is available on the NEM Website.

On January 16, 2003, FERC held a technical conference on Capital Availability for Energy Markets. Chairman Pat Wood moderated the conference’s four panels: (1) Capital Investors; (2) Market Analysts; (3) Market Participants; and (4) Regulatory and Private Agencies/Organizations. The panelists discussed the current state of the energy market, the existing barriers to needed investment and potential solutions. All panels agreed that increasing transparency and decreasing regulatory uncertainty would be a key ingredient in restoring investor confidence. A NEM Summary of the conference is available from NEM headquarters upon request.

FERC will hold a technical conference on February 4, 2003, to discuss issues relating to the SMD NOPR's proposed rules for cyber-security of entities interacting on the nation's electric grid. The proposal was developed by NERC, which has since proposed a set of revisions to the standard that have been approved by the NERC Board. The conference will build upon the concepts found in the original and revised cyber-security standards. The discussions will focus on the implementation and timing of, and compliance with, the standards. The full text of the Notice of Technical Conference is available on the NEM Website.