While the following is not directly Y2k related, I think it gives you a sense of the ability that NERC has to control or dictate operations standards to their constituent members. Remember - NERC is a small organization that was formed to create standards for the bulk transmission system in the U.S., and they have approximately 30 permanent employees (including receptionists and secretaries) to manage the whole thing. They are pushing for industry and goverment recogniztion of an SEC-style regulatory type agency (NAERO). I think it's a good idea, but too late for Y2k, unfortunately...

Contact: Eugene F. Gorzelnik
efg@nerc.com
April 22, 1999

Legislation Needed to Protect Reliability of Nations Transmission Systems

Federal legislation is needed to protect the reliability of the nations interstate, high-voltage transmission system, while supporting robust competition in wholesale electricity markets was the basic message of the North American Electric Reliability Councils (NERC) testimony today before the Energy and Power Subcommittee of the House Commerce Committee.

Testifying on behalf of NERC, David R. Nevius, the Councils Vice President, said, The existing voluntary system for setting and encouraging compliance with industry reliability standards for the transmission system is not sustainable in todays increasingly competitive electricity industry. He added, An independent self-regulatory organization, under government oversight, is the best way to develop and enforce compliance with reliability rules for the interstate transmission system. The alternative to an industry organization is, by default, a government agency.

NERC, over the last year, has developed an industry consensus legislative proposal to establish such an independent industry self-regulatory organization. The proposal follows the model of the Securities and Exchange Commission (SEC) in its oversight of the securities industry self-regulatory organizations (the stock exchanges and the National Association of Securities Dealers, Inc.).

The consensus language is supported by a broad coalition of industry organizations and stakeholders, including: American Public Power Association (APPA), Canadian Electricity Association (CEA), Edison Electric Institute (EEI), Electric Power Supply Association (EPSA), Electricity Consumers Resource Council (ELCON), Enron Corp., and the National Rural Electric Cooperative Association (NRECA).

In addition, those supporting the NERC language are working with the states to address their role in the context of the proposed industry self-regulating reliability organization.

A copy of NERCs testimony can be downloaded from its web site at www.nerc.com or from www.naero.org.

-- Anonymous, April 22, 1999

Answers

Thanks Rick

-- Anonymous, April 23, 1999