January 28th mtg in DC on

Re the Jan 28th NERC/NAESB mtg in DC:

Background:
NERC is in discussions with the North American Energy Standards Board
(NAESB, formerly GISB) and others on any needed changes to either NAESB or
WESM for determining how standards should be established for the Wholesale
Electric quadrant of the NAESB organization. Future mtg dates are:
Feb 1 in NYC
Feb 12 in Atlanta
Feb 21 in the West, maybe Phoenix (per request by Dennis, at BPA/Western
Canada, etc. urging)
There is also a plan to provide telephone or electronic conferencing options
at these meetings. I plan to participate by conference Feb 1 and 12, and by
attendance Feb 21st.

Some of the issues discussed at the Jan 28th mtg are:

1) relationship between the NAESB Board and the WESM Board
2) appropriate industry membership segments
3) relationship with FERC/Canada/State Commissions/RTOs
4) funding
5) standards development process and compliance

There appears to be industry consensus on use of NAESB as the umbrella
organization for the electric/gas wholesale and retail quadrants and
somewhat less agreement on use of a modified NERC for the electric wholesale
quadrant. Some still argue that NERC should only focus on reliability and
shouldn't set business/commercial practices, however many in the industry
understand that these are inextricably linked and there should be a single
organization for setting both reliability and business/commercial
practices/standards.

NAESB quadrants may use the NAESB prescribed/pre-approved ANSI process and
governance/membership criteria- which differ slightly from the new NERC
Organization Standards Process and WESM criteria - or may choose different
criteria and a different ANSI-approved process. More info on NAESB can be
found at www.naesb.org .

The FERC Order Providing Guidance on the Formation of a Standards
Development Organization for the Wholesale Electric Industry (RM01-12-000,
dated 12/19/01) requests the industry to "agree on a single standards
organization to develop wholesale electric standards by March 15, 2002".
The NERC BOT will take action on the revised WESM at their February mtg.