-----Original Message-----
From: Hess, Theresa 
Sent: Wednesday, October 17, 2001 10:26 AM
To: Corman, Shelley; Holmes, Bradley
Subject: FW: Press Release -- NERC Expands Role


FYI -- NERC is expanding their role to include development of wholesale electric business practice standards, in addition to reliability standards.  It looks like they're making it clear that they don't want an EISB developing wholesale electric standards.  They plan to be the single organization for developing these standards.  They've even added balanced voting for their committees.  I don't know the details, but they're using pieces of GISB's process that they know work and that people like.

Some GISB representatives have been making it look as if everyone in the energy industry is on board with EISB.  Clearly, they're not.

I'll let you know if I hear anything else.

Theresa


October 16, 2001

NERC Expands Role

At a watershed meeting today in Vancouver, BC, the North American Electric
Reliability Council's (NERC) Board of Trustees took bold steps to expand
its
role for developing standards for the wholesale electric industry in North
America.

Michehl R. Gent, NERC President and CEO, said, "On the strength of strong
recommendations from the NERC Stakeholders Committee, the Board pledged to
take all necessary steps to become the single organization in North America
to develop both reliability standards and wholesale electric business
practice standards and to file such standards with the Federal Energy
Regulatory Commission (FERC) and appropriate government agencies in
Canada."

"NERC is committed," says Gent, "to establishing a fair, open, balanced,
and
inclusive process for developing all standards."  NERC's Board approved a
new process for developing standards and agreed to a new composition and
weighted sector voting model for its standing committees.

NERC has long been recognized and respected as the industry's developer of
standards for the reliable planning and operation of interconnected
transmission systems throughout North America.  These standards have been
the basis for the reliable operation of the bulk electric systems for over
30 years.

Richard Drouin, Chairman of NERC, stated, "The Board of Trustees recognizes
the urgent need for a single organization to develop both reliability
standards and wholesale electric business practice standards that are well
coordinated.  Such standards," Drouin added, "are vital to support the
evolution of competitive electricity markets, the formation of large
regional transmission organizations, and continued reliability and security
of interconnected transmission systems."

Today's actions are a major step toward formalizing a role that NERC has
filled for some time.  NERC spearheaded the OASIS "What" and "How" Working
Groups that developed the Standards and Communications Protocols followed
by
all transmission providers; formed a Market Interface Committee to address
the impact of reliability standards on markets and the impact of market
practices on reliability; and facilitates the Electronic Scheduling
Collaborative, which recently filed a report with FERC on its efforts to
develop common business practice standards for electronic scheduling (OASIS
Phase II).

To accomplish its reinvention, NERC will actively solicit support from
Canadian and U.S. government entities, and facilitate ? jointly with
interested trade associations; federal, state, and provincial regulators;
and other stakeholder organizations ? an open and inclusive process to
achieve consensus on the details of its new role.

In parallel actions, the Board also took steps to ensure the independence
of
actions by its 21 Security Coordinators from any wholesale or retail
merchant functions, and agreed to revamp the composition and voting
structure of its standing committees.

For more information on NERC or its transformation into NAERO, visit NERC's
web site (http://www.nerc.com/). The web site also includes information on
the electric industry's electricity supply and delivery programs and
activities.


*********************


NERC is a not-for-profit company formed as a result of the Northeast
blackout in 1965 to promote the reliability of the bulk electric systems
that serve North America. It works with all segments of the electric
industry as well as customers to "keep the lights on" by developing and
encouraging compliance with rules for the reliable operation of these
systems. NERC comprises ten Regional Reliability Councils that account for
virtually all the electricity supplied in the United States, Canada, and a
portion of Baja California Norte, Mexico.