Less than three months after the group was formed, the North American Energy Standards Board (NAESB) said Friday that its retail electric and retail gas quadrants have been approved following votes by the NAESB board of directors on Thursday. The two quadrants join the wholesale gas quadrant, which was created Jan. 1. NAESB, as the successor to the Gas Industry Standards Board (GISB), will develop standardized business practices for the retail and wholesale natural gas and electricity markets.

At a meeting of the board at the American Gas Association’s offices in Washington, DC, the board accepted quadrant procedures for the retail electric and retail gas quadrants. Now three of the four quadrants are in existence with only wholesale electric still undecided.

In other meeting news, the NAESB board approved promotional dues requested by the organizers of the retail gas and retail electric quadrants. The special dues of $500 a year — one-tenth of the regular NAESB dues of $5,000 a year — will be in effect until Dec. 31, 2003, and be applicable to no more than three representatives of organizations representing residential end users in each quadrant. NAESB said there will be an open season until April 15, 2002 to identify interested consumer advocacy groups.

“It’s extremely gratifying that three NAESB quadrants are in operation less than three months after NAESB’s formation,” said board Chairman Bill Boswell, assistant corporate secretary of Dominion and a partner in McGuireWoods LLP. “This is a testimonial to the hard work put in by the Joint Electric and Gas Retail Working Group in developing procedures for these two quadrants.”

Boswell added that the board has discussed the progress of industry meetings over the fourth NAESB quadrant. “I’m confident that the wholesale electric quadrant will be in full operation this year,” he said. “The wholesale electric industry recognizes the need for an organization to develop business practice standards and the value of the NAESB process, and I believe that a proposed structure for this quadrant is close to completion.”

The formation of a wholesale electric quadrant is also fighting the clock. The Federal Energy Regulatory Commission in a Dec. 19 order called on the wholesale electric industry to make a filing by March 15 on a single standards organization.

“We’re looking forward to working out the details of how a multiple-quadrant NAESB will operate,” said Rae McQuade, NAESB executive director. “It will be an excellent opportunity for us to learn from each other and share our respective strengths.”

Formed in December 2001 (see Power Market Today, Dec. 10, 2001), NAESB is modeled after GISB, which was established in September 1994 as an independent and voluntary North American organization to develop and promote the use of business practice and related electronic communications standards.

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