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October 1, 2004
Entergy Solutions Elected to Executive Committee

NEM is pleased to announce that Entergy Solutions has been elected to NEM’s Executive Committee. Entergy Solutions, Entergy’s retail affiliate, provides competitive energy products and services to help residential, commercial and industrial customers in Texas better manage their energy needs and requirements. Entergy Solutions will be represented within NEM by Jim DeLong, Vice President of Retail Markets.

Roundtable Fosters Dialogue Between Regulators and Marketers

NEM's Fall Leadership Roundtable, held earlier this week, brought together Commissioners and staff from the Massachusetts Department of Telecommunications and Energy, senior staff from the New York Commission and NEM members. Paul Afonso, Chairman of the Massachusetts Commission, spoke about the market in his state as well as the Commission's desire to work with energy suppliers. Ron Cerniglia, from the New York Commission, discussed recommendations from the recently released Policy Statements and answered questions from members. The meeting closed with reports from policy chairs, who presented updates and recent developments from their regions. Thanks again to Nate Owen and Bob Potter of Energy Services Group as well as Mike Foley of First Data Corp for hosting the event. Minutes from the meeting will be circulated shortly.

Upcoming NEM Events

NEM's Winter Executive Committee Meeting will be held in Newport Beach, California on January 19-20, 2005. Many thanks to Peter Weigand and Ian Carter of Commonwealth Energy (now called Commerce Energy Group) for offering to host this event.

Lastly, NEM's Annual Restructuring Conference in Washington, DC, will be held at the Marriott Metro Center on April 21-22, 2005. Please email or call headquarters if you wish to speak at or sponsor this event. Advertisements will begin later this month.

Columbia Requests Evaluation of CHOICE Program to be Postponed

After discussing its pilot CHOICE program with interested parties, Columbia, with assistance from NEM member IGS, has developed a framework for a new CHOICE program. Following a stakeholder meeting in a few weeks, Columbia plans to submit an application detailing the new program to the Commission by the end of the month. Columbia hopes to obtain Commission approval in order to begin the program by April 1, 2005, in order to dovetail with the expiration of the current program. Because of this impending application for a new CHOICE program, Columbia requests the Commission postpone its evaluation of the current program. Columbia received an extension for filing a status report on its CHOICE program in July 2004.

New York
Commission Issues Renewable Portfolio Standards Order

By the terms of the Commission's order, 25% of electricity sold in New York will be provided from renewable resources, up from the current 19.3%. The percentage consists of two components, a "mandatory" 24% to come from compliance with the RPS program with the remaining "voluntary" 1% to come from the green markets through a separate, parallel mechanism. NYSERDA will administer a central procurement program, which will seek to provide incentives for the use of renewable resources in a competitively neutral manner. The program will be funded from a non-bypassable volumetric wires charge applicable to regulated utility customers, which will be first collected during the fourth quarter of 2005. Under this plan, ESCOs will not be required to procure renewable resources, in order to not deter such companies from entering the market. The program itself will commence on January 1, 2006 and be reviewed in 2009. The full text of the order is available on the NEM web site.

Commission Approves NEM-Backed ConEd Gas Rate Plan

As urged by NEM, the Commission approved ConEd's gas settlement that incorporated many of the migration strategies outlined in the Commission's recently released Policy Statements, such as purchase of receivables. The plan also requires ConEd to institute a marketer referral program akin to O&R's PowerSwitch, use an ESCO ombudsman and conduct a Market Match and Market Expo program. ConEd's rate plans will become effective on October 1, 2004. The full text of the Order is available on the NEM web site.

Upcoming Conference Call on Gas Market Conference

As a result from discussion at the Leadership Roundtable, a conference call has been scheduled for Wednesday, October 6, 2004 at ____ to discuss the Pennsylvania gas market conference held on September 30, 2004. The dial-in number is 703-788-0600. The passcode is 209353. NEM testimony is available on the NEM web site. Comments from the Office of the Consumer Advocate and the Energy Association of Pennsylvania are also available on the NEM web site.

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