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November 7, 2002
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 the Sheraton San Diego Hotel & Marina, West Tower, on January 16 and 17, 2003. The meeting will start at 9AM on January 16 and adjourn before noon on January 17. 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. A registration form is hotlinked here for your convenience. A block of rooms has been reserved at the rate of $189 per night. Place your reservations at 619-291-2900 or 888-625-5144. Reservations must be received by December 16, 2002, in order to guarantee the discounted rate.

All Executive Committeee Members are requested to attend. A draft agenda is hotlinked here for your convenience.

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

Members who wish to be speakers, sponsors or exhibitors should contact headquarters immediately. Government officials and PUC commissioners have already started to RSVP.

Conference Call on NEM Committee on Clearing and Settlement

There will be a conference call to discuss a NEM Committee on Clearing and Settlement and possibly a committee on Mark to Market and FASB-Related Issues. We are also putting together an interactive panel for NEM's April Event on this set of issues and reaching out to the SEC and CFTC to participate in the April Event. The CFTC Chairman and the Director of the Division on Clearing and Financial Intermediaries have been invited and may RSVP.

A bridge has been reserved for NEM members interested in identifying the issues in which they could play a leading roll as we develop our advocacy agenda for 2003. The call will be held Tuesday, November 12, 2002, at 1PM EST. The dial in is 703-788-0600, and the passcode is 209353.

Your help in identifying the national issues in which NEM members could play leadership rolls would be greatly appreciated.

NEM Member Opportunity

NEM members that wish to submit articles for publication in Harts Energy Markets should contact headquarters ASAP.

New York
Metering Manual Conference

A conference has been scheduled to review Chapter 2 of the Competitive Metering Manual. The meeting will be held at the Commission's Penn Plaza, Albany and Buffalo Video Conference Rooms on November 20 and 21, 2002, from 8:30AM to 4:00PM each day. Those planning to attend should contact LuAnn Scherer with Staff by November 18, 2002, at:

NEM Submits Trial Brief in NYSEG Unbundling Proceeding

NEM submitted a trial brief in the NYSEG unbundling proceeding. NEM argued that NYSEG did not comply with Commission Orders requiring the filing of an embedded cost study but rather filed an avoided cost study. NEM also argued that NYSEG's proposed stranded cost recovery mechanisms did not comply with Commission Orders because they did not use a two-part method in which competitive service costs would not be applied to customers that migrate. The full text of NEM's Brief is available on the NEM Website.

Commission Approves EDI Test Plans

The Commission issued an Order approving the test plans for the EDI 820 Remittance Advice and the 248 Account Assignment Transaction Standards. The Commission reaffirmed the use of the end-to-end testing approach such that all required test scenarios are completed in logical progressions, beginning with enrollment and usage transactions and continuing through all other required transactions. The Commission directed that all parties be prepared to submit test files for Phase I certification within 45 days of the date of this Order. The utilities were directed to commence Phase II testing on these transaction standards within 45 days of the approval of the remaining EDI billing test plans. The full text of the Order is available on the NEM Website.

Order on Standardized Interconnection Requirements for Distributed Generators of 300 kVA or Less

The Commission issued an Order adopting modifications to the standardized interconnection requirements for distributed generators of 300 kVA or less that are connected in parallel with radial distribution lines. The modifications mainly pertain to the application proces and streamline Steps 4 through 6. The design review phase was eliminated allowing overall processing to be reduced by ten to twenty business days. The Commission also eliminated the three proposed waveforms from the type-testing process. The full text of the Order is available on the NEM Website.

Utilities File Proposed Gas Choice Tariffs

Columbia and Dominion East Ohio (DEO) both filed proposed choice gas tariffs. DEO has proposed the following revisions to the Rates and Charges section of their Energy Choice Pooling Service (ECPS) Agreement: 1) a $50 financial evaluation fee for supplier creditworthiness review; 2) a $0.05 eligible customer list fee per name and address (or $0.075 per name and address for the list and up to 3 quarterly updates); 3) a charge of $0.035 per Mcf for all daily pool requirement volumes redelivered to supplier's customers; 4) $5.00 customer conversion charge; 5) optional assignment of upstream capacity will be structured as a release of capacity at the full maximum rates paid by DEO; 6) on-system storage transfer price will equal the 1st of the month price index as published in Inside F.E.R.C.'s Gas Market Report for Dominion Transmission Inc. Appalahia for the month in which the purchase or sale takes place plus the variable cost of transportation on Dominion Transmission Inc. to East Ohio's city gate; 7) a total charge of $100.00 per month for daily imbalance trading transactions with other ECPS suppliers; 8) DEO will purchase the sum of the daily imbalance volumes for a given month (not offset by the above) at a price based on the ratio of the cumulative positive daily imbalance volume to the sum of the daily pool requirements for that month. DEO will sell the sum of the negative daily imbalance volumes for that month at a price based on the ratio of the cumulative negative daily imbalance volume to the sum of the daily pool requirements for that month; 9) a $100.00 charge per transaction for monthly imbalance trading transactions with other ECPS and FRPS suppliers; 10) the supplier may purchase optional firm storage service at the same rates as those of the enhanced seasonal service; and 11) non-compliance with an OFO may result in the recall of assigned capacity and additional charges.

DEO has filed the following documents: Billing Agreement - Option 1-2002, Billing Agreement - Option 2-2002, Billing Rules, ECPS Service Agreement-2002, ECPS Service Agreement-2002Clean, ECPS Table of Contents, ECSOC 2002, ECTS-West Ohio-2002, ECTS-West Ohio-2002Clean, ECTS-2002, ECTS-2002Clean, LVECTS -West Ohio- 2002, LVECTS -West Ohio- 2002Clean, LVECTS-2002, LVECTS-2002Clean, New Microsoft Publisher Publication, Revised ECPS Terms- 2002, Revised ECPS Terms- 2002 Clean. The DEO Documents are available on the NEM website.

Columbia Gas proposed tariff revisions to modify their customer choice program to comply with HB 9 and the Commission's Rules. The proposed tariff provides for opt-out governmental aggregation and new requirements for suspension and termination of certified retail natural gas suppliers in the event of their default. Columbia will serve a written notice of default with a proposed remedy on the retail supplier and the Commission. Columbia may then terminate or suspend the retail supplier on the 11th business day (6th business day for default due to under-delivery or non-delivery) if the Commission has not issued an order to suspend or reject the proposed action. Additionally, Columbia has proposed a Transportation Program Cost Rider of $0.0234 per Mcf, applicable to all sales and transportation customers. Columbia will hold an open meeting at 9:00 AM EST on November 19, 2002, to allow all retail natural gas suppliers, aggregators and other interested parties an opportunity to discuss the proposed tariffs and other issues relating to their choice. The full text of Columbia's Proposed Tariff is available on the NEM website.

Rulemaking on Disclosure of Information on Texas Electricity Transactions

The Commission has instituted a rulemaking proceeding to examine disclosure requirements for information relating to bilateral transactions for energy or capacity in Texas. The Commission will hold a workshop to receive comments on draft rules on November 14, 2002, at 9:30AM in Hearing Room Gee. The full text of the Notice of Workshop is available on the NEM Website. The full text of the Draft Rules will be posted on the NEM Website when made available electronically.

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