North American Energy Standards Board Progress Report on Pipeline Capacity Creditworthiness Standards Development under RM96-1.

NORTH AMERICAN ENERGY STANDARDS BOARD 1301 Fannin, Suite 2350 Houston, Texas 77002 Phone: (713) 356-0060 Fax: (713) 356-0067 email: naesb@aol.com Web Site Address: www.naesb.org June 16, 2003 Filed Electronically TO: The Honorable Magalie Salas Secretary Federal Energy Regulatory Commission 888 First Street N.E. Washington, D.C. 20585 RE: NAESB Progress Report on Pipeline Capacity Creditworthiness Standards Development (Docket Nos. GT02-35-000, GT02-38-000) Dear Ms. Salas: The North American Energy Standards Board ("NAESB") herewith submits this report to the Federal Energy Regulatory Commission ("FERC" or "Commission") regarding NAESBs activities over the past seven months with respect to the development of pipeline capacity creditworthiness standards. The NAESB Business Practices Subcommittee (BPS) began the effort on November 6, 2002, and prepared a recommendation for the Wholesale Gas Quadrant Executive Committee (WGQ EC) consideration on May 20 and June 5, 2003. The WGQ EC adopted ten standards, which require membership ratification. The ratification process should conclude shortly. The BPS prepared a recommendation of 24 proposed standards. The BPS meeting minutes are provided as enclosures. The WGQ EC considered these proposed standards and the industry comments on May 20 and June 5, 2003. The minutes and voting records from those meetings are provided as enclosures. For the proposed standards that were not adopted, the EC members provided reasons for opposition or abstention. The BPS meetings and WGQ EC meetings were open to all interested parties, the agendas for those meetings posted in advance, and the meetings were also accessible via conference call. Most of the BPS meetings and the two EC meetings were transcribed. The report is being filed electronically in Adobe Acrobat Print Document Format (.pdf), and each enclosure is bookmarked separately. All of the documents are also available on the NAESB web site (www.naesb.org). Please feel free to call me at (713) 356-0060 or refer to the NAESB website (www.naesb.org) should you have any questions or need additional information regarding this report. Respectfully submitted, Ms. Rae McQuade Executive Director, North American Energy Standards Board NORTH AMERICAN ENERGY STANDARDS BOARD 1301 Fannin, Suite 2350 Houston, Texas 77002 Phone: (713) 356-0060 Fax: (713) 356-0067 email: naesb@aol.com Web Site Address: www.naesb.org cc w/o enclosures: NAESB Managing Committee: Leonard Haynes, Chairman, NAESB Board of Directors Michael Desselle, Vice Chairman, NAESB Board of Directors William Boswell, Vice Chairman, NAESB Board of Directors Mark Maassel, Vice Chairman, NAESB Board of Directors James Templeton, NAESB Board of Directors James Buccigross, Chairman, NAESB Executive Committee The Honorable Patrick ...