Emissions

CEOs of energy and technology companies to forge consensus on restructuring priorities for 2002

WASHINGTON, D.C., Jan. 9, 2002 — The Executive Committee of the National Energy Marketers Association (NEM) will meet in Houston on January 17 to forge a consensus on federal legislation, wholesale, retail and technology issues and will be addressed by Texas PUC Commissioner Brett Perlman.

“Given the recent developments in both the wholesale and retail markets as well as the events surrounding Enron, 2002 will be a crucial year for the restructuring of U.S. energy markets. Commissions in New York, Illinois, and Michigan are implementing important new rules this year, and both Texas and Virginia have just opened widely to competition,” said Craig Goodman, president of NEM.

“The first half of 2002 will focus heavily on restructuring wholesale energy markets to be more liquid, transparent and competitively neutral,” said Clem Palevich, chairman of the NEM Executive Committee and president of AES New Energy. Major issues affecting the wholesale energy market on the agenda will include recommendations for competitive standardized market designs, and support for a wholesale electric standards board proposal.

Additionally, NEM leaders will develop workable definitions of market power, economic withholding, energy affiliates, and rules for generation interconnection. “Importantly, there will be major changes in credit and risk management. Given all of the recent attention generated by Enron, risk identification and valuation will be a major issue to be resolved this year,” said Palevich.

“2002 will also be pivotal in the development of competitive retail energy markets,” said Goodman. “A number of important states will be unbundling utility rates using embedded costs to offer consumers credits on utility bills to shop for competitive services. I am confident that competitive suppliers can beat the utility’s embedded costs and provide consumers with meaningful price competition and better services and technologies. If commissions stay the course on embedded cost unbundling, this year will also be a major step forward for competitive billing, metering and related information services,” said Goodman.

NEM represents both wholesale and retail energy marketers as well as suppliers of energy-related products, services, information and technologies throughout the United States.

For a copy of NEM’s 2002 Issue List call 202/333-3288 or visit www.energymarketers.com