NERC vows to work closely with other groups to develop wholesale electric reliability standards

March 15, 2002 — The North American Electric Reliability Council (NERC) today filed comments with the Federal Energy Regulatory Commission that demonstrate its continued strong commitment to reliability.

“NERC believes that a reliable bulk electric power system in North America is of paramount public interest, and is the foundation of a robust competitive market,” stated Michehl R. Gent, NERC President and CEO.

NERC asserts that it will coordinate closely the development of NERC reliability standards for the interconnected electric grid with those entities responsible for developing wholesale electric business standards and related communications protocols for the industry.

“We pledge to work with others to create a workable process to coordinate NERC’s standards with the development of related industry standards,” Gent emphasized. He indicated that NERC is committed to developing reliability standards that enable and encourage market solutions to the maximum extent possible. “Clear reliability rules that are international in scope will make it possible to build effective market mechanisms around those rules,” Gent added.

A significant number of industry groups and individual companies signed onto NERC’s filing, including the American Public Power Association, National Rural Electric Cooperative Association, Transmission Access Policy Study Group, National Association of State Utility Consumer Advocates, Arizona Public Service Company, Southern Company Services, Inc., Western Area Power Administration, and Wisconsin Electric Power Company.

Many other parties have indicated in their own filings with FERC support for NERC’s reliability standards setting role and proposed coordination approach. NERC welcomes this strong showing of support and believes that it demonstrates that, for a large number of affected entities, the approach laid out in our comments is a workable one.

For a copy of NERC’s filing or more information on NERC and its activities, go to

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.

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