News Release Contact: Craig Goodman

National Energy Marketers Association

News Release Contact: Craig Goodman FOR IMMEDIATE RELEASE Telephone: (202) 333-3288 May 21, 2001 Facsimile: (202) 333-3266 Website: www.energymarketers.com.

National Energy Marketers Association Calls for Targeted Incentives for New Supplies, Conservation, Infrastructure and Technology

Washington, DC - The National Energy Marketers Association (NEM), responding to the Administration's Energy Plan and the Democrat's Response is issuing an urgent call for bipartisan support for meaningful incentives for massive new investments in additional energy supplies, conservation, infrastructure and technology. "Both plans recognize that new investments are required immediately, but both plans lack sufficient incentives to permit energy prices to come down," said NEM President, Craig Goodman, former high-ranking energy and tax policy official in the Reagan and first Bush administrations.

The Administration's multi-departmental analysis calls for comprehensive electricity legislation to increase both conservation and new energy supplies without sacrificing environmental protection. "There is no question that comprehensive energy legislation is needed immediately," said Goodman. "However, others calling for price controls, penalties and subsidies for uneconomic technologies will divert capital and rob consumers of needed supplies, conservation, and vital infrastructure investments at precisely the time they are sorely needed." warned Goodman. "Targeted, time-sensitive, performance based rates for infrastructure upgrades, congestion management, and streamlined interconnection procedures could relieve shortages and price spikes quickly."

"New federal laws are needed immediately to ensure meaningful price competition for the smallest retail consumer. Only then will consumers benefit from lower energy costs, greater efficiency and the country will enhance its competitive advantage in the global digital economy," Goodman stated. "NEM has long advocated the expansion of existing Internal Revenue Code Sections to include 'Qualified Energy Restructuring Investments' for new supplies, conservation, infrastructure, advanced metering and distributed generation technologies." said Goodman. "Accelerated cost recoveries for new investments in energy supply, conservation, advanced energy technology and environmental protection will solve the energy supply problem quickly and is one of the lowest cost, highest yield policy solutions. New energy supplies, conservation and advanced technology will

1 lower costs to all consumers and should be considered a moral imperative," said Goodman.

The National Energy Marketers Association (NEM) is a national, non-profit trade association representing marketers of energy and energy-related products, services information and technologies throughout the United States. For copies of NEM's National Guidelines to Implement Energy Restructuring and National Energy Technology Policy contact NEM's Washington, DC headquarters at (202) 333- 3288 or its Web site at www.energymarketers.com.