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September 6, 2002
Shell Energy Services Nominated to NEM Executive Committee

NEM is pleased to announce that Shell Energy Services has been nominated to the Executive Committee. Shell Energy Services markets natural gas to residential and small commercial customers in competitively structured markets in the United States. Shell Energy Services will be represented by Steven Murray, President and CEO, and Harry Kingerski, Manager of Regulatory Affairs, within NEM.

First Draft of NEM's "National Guidelines for Credit, Risk Management and Financial Accountability"

A first rough draft of NEM's "National Guidelines for Credit, Risk Management and Financial Accountability" has been prepared. The document has been circulated to the Executive Committee and the taskforce formed to address these issues. The document is not yet ready for public circulation. However, member comments are welcomed and encouraged. The draft is available on the NEM website. Please forward your comments on the document to headquarters by September 13, 2002. This document will be an issue for discussion at NEM's Executive Committee and Industry Leadership Roundtable on September 26, 2002, in Chicago.

FERC Meeting on Standard Market Design NOPR

On September 17, 2002, at 2PM NEM members will be meeting with FERC Staff responsible for the Standard Market Design GIGA-NOPR at the FERC headquarters in Washington, DC. A draft agenda for the meeting is hotlinked here. 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.

Prior to the FERC Briefing, NEM has been invited to participate in a meeting at the National Petroleum Council to discuss a new study on natural gas in the 21st century. Preparation of the study was requested by Secretary Abraham. The meeting will be a session on midstream, distribution and transmission. The meeting will be held on September 17, 2002, at 10AM. Please contact headquarters ASAP if you are interested in attending this meeting.

NEM Meeting on FERC SMD NOPR, 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 NOPR on 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 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. A block of rooms has been reserved at the Sheraton San Diego Hotel & Marina, West Tower, at a 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. An agenda will be sent out prior to the meeting.

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. Government officials and PUC commissioners have already started to RSVP.

NAESB Seeking Participants in Retail Gas Quadrant

NAESB's Retail Gas Quadrant (RGQ) is seeking participants to develop retail model business practices. A company, depending on its business interests, may join one of the four segments within the RGQ: Suppliers, Distributors, Service Providers or End Users. Participants in the Retail Gas Quadrant have drafted a proposal for the 2002-2003 Annual Plan. This draft identifies items or topics to be examined by NAESB participants through year-end 2003. To obtain more details, visit the NAESB website,, or contact Rae McQuade at (713) 357-0060 or You may also obtain a membership application by downloading it from the NAESB website or by contacting Jo Ann Garcia at (713) 357-0060 or

ALJ Ruling in ComEd Proposal to Declare Rate 6L Competitive

The ALJ in the ComEd proceeding on declaration of Rate 6L as competitive has decided to bifurcate the proceeding. As a result, the issue of declaration of Rate 6L as competitive will be reviewed first. The matter of ComEd's proposed changes to Rate HEP will be deferred pending the resolution of the competitive declaration issue. The full text of the ALJ's Ruling is available on the NEM Website.

Order on Retail Gas Sales Service

The Commission issued an Order on retail gas sales service in which it concluded that the utilities should continue in the merchant function. The Commission reasoned that it is not appropriate to force gas customers to choose competitive service by removing the possibility of tariffed sales service. Accordingly, the Commission directed the utilities to make plans for interstate gas transmission and storage necessary to meet their service obligations. The full text of the Order is available on the NEM Website.

Workshop on Competitive Energy Services

The Commission will hold a workshop on competitive energy services on October 30, 2002, at 10AM in the Commission's 7th floor hearing room. The Commission requests comments on the following issues prior to the workshop: 1) how should the scope of the competitive energy services rulemaking be defined; 2) are there services currently listed in Commission rules as competitive energy services for which there are not competitive suppliers; and 3) should the petition process for classification of a service as competitive or non-competitive be changed. Initial comments are due September 23, 2002, and reply comments are due October 7, 2002. The full text of the Notice of Workshop is available on the NEM Website.

Staff Issues Report on Development of Electric Retail Market

Staff has issued its annual report to the legislature on the development of the retail electric market in the state. Contrary to the urgings of NEM, the Report does not recommend the elimination of price caps and wires charges in the market. The Report recommends that large C&I customers that are willing to commit to market-based pricing if they return to utility service should be able to switch to a competitive supplier without having to pay a wires charge. The Report also recommends that shopping customers that return to utility service should have the option to accept market-based pricing rather than capped rates in order to avoid a minimum stay requirement. The Report, recognizing the importance of sending price signals to consumers, urges the legislature to consider whether the installation and payment for interval meters should be left to customers and competitive suppliers or whether it should be the responsibility of the utilities. The Report also noted that a determination of the amount of the utilities' stranded costs should be made and that wires charges and some part of capped rates should be allocated to the recovery of those costs. The full text of the Report is available on the NEM Website.

Staff Report on Competitive Metering

Staff has issued a report on competitive metering. Staff proposes that the metering work group develop rules for ownership of meters by large C&I customers by December 16, 2002. Staff also recommends that the work group focus on monitoring market developments in metering prior to the implementation of any additional elements of competitive metering for large customers. Staffs suggests that the matter of whether competitive metering for residential and small business is in the public interest should be issued for comment. The full text of the Staff Report is available on the NEM Website.

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