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June 7, 2002
NEM Executive Committee Leadership Nominations

The Leadership of the NEM Executive Committee has circulated nominations for the National, Regional and State Policy Chairs and Co-Chairs for the coming year. Members wishing to add nominations should contact headquarters ASAP. A special meeting of the Executive Committee is scheduled for the evening of June 19 from 6PM-8PM at the Marriott Metro Center to consider the structure of the Executive Committee and to vote on the nominations. Food and beverages will be served at the meeting. We need RSVPs ASAP.

NEM Annual Membership Meeting and National Restructuring Conference to Focus on Crisis in Energy and Financial Markets

Senators, FERC, PUC and FTC Commissioners have confirmed for 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. An updated agenda, registration form and electronic brochure is hotlinked here for your convenience. All Congressional members and Staff of the Conference Committee on the Energy Bill have been invited to the NEM VIP reception to be held on the evening of June 20, 2002, in the Senate Hart Office Building Room SH-216. If you plan to attend the conference and the reception, we need your security information ASAP. Firm headcounts are needed ASAP. If you need help signing up, please call headquarters at 202-333-3288.

NEM's Risk Valuation, Management and Accountability Task Force Calls for Presidential Commission

NEM's National Restructuring Conference has been refocused to the growing crisis in the energy and financial markets. NEM's Risk Valuation, Management and Financial Accountability Task Force will be developing guidelines and a code of conduct to address the credit, risk and financial issues facing the industry in the wake of Enron, and the preliminary findings of the Taskforce will be reviewed at the Conference.

The Taskforce is seeking widespread expertise on the issues in the same manner that the Derivatives Policy Group brought together diverse interests to address the OTC derivatives controversy of the 1990s in a manner that ensures maximum credibility with investors, rating agencies and regulators. NEM believes that its policy development process should develop into the same bipartisan Presidential-level Commission that addressed the derivatives issues.

Many thanks to Lee Taylor, Harry Fry, Mike Walker, Bob Young, Kim Detiveaux, Dennis Sobieski, Mike Prokop, Ron Lukas, Trip Ray, Gordon Allott, Ray O'Connor, Paul Messerschmidt, Jennifer Feinstein, Sarah Althoff and Greg Towstego for their assistance with this project.

NEM-EEI Master Netting Agreement

A final working session of the Master Netting Working Group will be held on June 24, 2002, at a location to be determined. A revised draft of the MNA has been prepared, and comments on the draft are due by June 21, 2002, to and It is expected that a final version of the MNA will be introduced on July 1, 2002. The full texts of the Revised MNA Draft (Clean) and Revised MNA Draft (Redlined) are available on the NEM Website.

Many thanks to Dede Russo, Marty-Jo Rogers, Chris Bernard, Vince Duane and others for their leadership and hard work on this important project.

NAESB Wholesale Electric Quadrant Meeting

The next meeting of the NAESB Wholesale Electric Quadrant will be held in Columbus, Ohio and will be hosted by AEP. The meeting will take place on June 20 and 21, 2002. The purpose of the meeting is to confirm segment definitions, discuss sub-segments and discuss the number of seats on the Board and Executive Committee for the WEQ. A subsequent meeting may be scheduled for July 15 and 16, 2002, to confirm decisions made at the June meeting.

Commission Threatens Revocation of Market-Based Rates in Enron Investigation

The Commission issued an Order to Show Cause why market-based rate authority should not be revoked to El Paso, Williams, Portland, and Avista in connection with the Enron investigation. The Order was issued because FERC believed the companies had failed to cooperate with the investigation by providing incomplete or inconsistent answers to the data requests pertaining to Enron's trading strategies. The full text of the Order is available on the NEM Website.

PJM Report on Seasonal Capacity Commitment Requirement

Pursuant to Commission Order, PJM submitted a report on its seasonal capacity commitment structure, opposed by NEM, whereby load-serving entities must procure generation resources under a seasonal commitment, the capacity deficiency charge is assessed based on an interval calculation, and generation owners are required to commit excess capacity for an entire season in order to receive capacity deficiency charges collected from LSEs. PJM urges that the present structure remain in place and reports that stakeholders are continuing to try to develop an alternative method to assure long-term capacity adequacy. The full text of PJM's Report is available on the NEM Website.

Standard Market Design Technical Conference Rescheduled

The previously scheduled conference on data and software needs in connection with the Commission's standard market design rule has been rescheduled to July 18, 2002, at 9:30 AM. The purpose of the conference is to discuss what should be standardized, if there should be a standard data model, developing data sets to benchmark the needed software, and the need for user-friendly, transparent interfaces. The full text of the Notice of Conference is available on the NEM Website.

Commission Rulemaking on Disconnection of Residential Gas Service

The Commission issued a NOPR on disconnection of residential gas service. The NOPR sets forth limitations on marketer disconnections requiring 15 days written notice, from the previous 5 days, prior to the date of disconnection as well as inclusion of an offer of a payment arrangement in the disconnection notice. The rulemaking also includes a procedure for consumers to dispute improper marketer disconnection including payments to the consumer of $100 and either $50/day for each day the consumer was without service or an amount set by the Commission. Marketers will also be subject to a fine of $100 per violation. Comments on the NOPR are due July 1, 2002. The full text of the NOPR is available on the NEM Website.

NEM and Member Comments on Telephonic and Internet Enrollment

NEM and its members MidAmerican Energy, AES NewEnergy, and Nicor Energy submitted comments recommending implementation of telephonic and Internet enrollment procedures utilizing electronic signatures and electronic records. It was argued that the adoption of the marketers' proposed telephonic and Internet enrollment rules will lower customer acquisition costs, allow for the provision of additional value-added products and services, reduce barriers to entry, and provide the foundation for a true, competitive energy market in the state. The full text of NEM's Comments is available on the NEM Website.

Many thanks to Misty Allen and Carla Meiners of MidAmerican Energy for their assistance with this proceeding.

Staff to Convene Split Bill Workshop

The Commission ordered Staff to convene a workshop for the purpose of identifying and resolving issues related to splitting gas and electric bills and accounts. The workshop will take place on June 17, 2002, at 10:30AM at the Commission's Springfield offices. Those wishing to participate in the workshop should contact Eric Schlaf at An agenda will be provided prior to the workshop.

Detroit Edison Stranded Cost Recovery Application

Detroit Edison filed a stranded cost recovery application. Detroit Edison proposes: 1) a recalculation of year 2000 net stranded costs reflecting its contention that it did not have any net stranded benefits for that year; 2) a year 2003 transition charge of 0.94 cents/kwh; 3) assessment of a charge to choice customers that return to tariff service to recover deferred net stranded costs and prevent "subsidization from remaining participants in the program;" 4) a method to use excess securitization savings to recover year 2001 and 2002 deferred net stranded costs and reduce future transition charges. The full text of the Detroit Edison Application and Testimony are available on the NEM Website.

New Jersey
Board Order and Schedule in Basic Generation Service Proceeding

The Board issued an Order requesting proposals for post-transition period basic generation service (BGS). The Board set forth the following guidelines for the proposals to follow and/or address: 1) separate proposals for specific customer classes may be submitted; 2)on what basis large customers should be priced, for example hourly monthly; 3) if there should be a separate category for medium-sized customers and if so, how those customers should be priced; 4) what should be the definition of large and small commercial customers; 5) who should pay for interval meters if necessary for hourly pricing; 6) what should be the switching requirements, if any, for commercial and industrial customers; 7) how will compliance with licensing requirements and/or affiliate standards be achieved; 8) how to handle customer assignment issues; and 9) how to address renewable portfolio obligations, as well as committed supply and uncommitted supply and EDI implementation issues. The procedural schedule for evaluation of the proposals is as follows: July 1-proposals due; July 15-discovery conference; July 29-discovery requests due; August 12-discovery responses due; September 9-legislative-type hearing; September 23-filing of final positions; October 7-comments on final positions; November 13-Board decision. The full text of the Order and Procedural Schedule are available on the NEM Website.

New York
Order on EDI Data Standards

The Commission issued an Order approving an EDI 814 Reinstatement Transaction Standard and adopting test plans for the 814 Account Maintenance Standard. Proposed test plans for the Reinstatement Standard are to be filed for formal comment within 21 days. Phase I testing of the 814 Change Standard is to commence within 60 days. The Commission also requested comments on a proposed modification to the 814 data standards to provide for the exchange of an additional data segment. This change would entail the parties electronic exchange of a utility-assigned account number for the ESCO on all 814 transactions. This number would be used in addition to the DUNS or Federal tax identification number currently required to be sent in these transactions. Comments on this proposal are due July 13, 2002. The full texts of the Order and Request for Comments are available on the NEM Website.

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