The North American Electric Reliability Council (NERC) on December 4,
2001, posted for public comment a proposed Wholesale Electric Standards
Model (WESM) -- an industry-based consensus process for developing,
maintaining, and publishing standards that promote reliable and
efficient wholesale electricity markets throughout North America.  Such
standards would address, in an integrated way, the whole spectrum of
reliability, market interface, and business practice standards through a
fair, open, balanced, and inclusive stakeholder process.

On December 19, the Federal Energy Regulatory Commission (FERC) issued
an Order Providing Guidance on the Formation of a Standards Development
Organization for the Wholesale Electric Industry (Docket No.
RM01-12-00).  That order directs the industry to reach agreement on the
formation of an organization to develop consensus standards for business
practices and electronic communications.  If the industry cannot reach
consensus on this issue by March 15, the Commission indicated that it
will either institute its own procedures to choose an organization or
will develop the standards itself.

To provide the NERC Standing Committees Representation Task Force
(SCRTF) as well as the NERC Stakeholders Committee and Board of Trustees
the broadest possible input, the Board strongly urges all interested
parties to comment on the WESM proposal in the context of the recent
FERC order.  Commenters should give particular attention to how NERC and
the recently approved North American Energy Standards Board (NAESB)
could collaborate in developing and overseeing a single, industry-based
consensus process to develop standards that assure the continued
reliable operation of the integrated North American electric
transmission grids as well as the development of business practice
standards and communication protocols needed to complement the market
design principles that FERC has announced its intention to develop.

NERC's SCRTF will use all comments received to help shape its final
proposal to the NERC Stakeholders Committee and Board of Trustees in
February 2002.  We also intend to provide the input we receive in this
public forum on the WESM model to FERC for its consideration. 

For additional information on the SCRTF and its membership, go to:
www.nerc.com/committees/scrtf.html. Please direct questions to David
Nevius, NERC Vice President, at 609-452-8060, or e-mail
dave.nevius@nerc.com.

The proposal is posted at the following NERC web site:
http://www.nerc.com/. The deadline for comments is January 8, 2002.

Sincerely,

Heather Gibbs