This has been an exciting year for our industry and for NECA. Looking back, it seems as if our industry is always at an important crossroad. As restructuring continues to mature in some parts of New England, it is being fundamentally challenged in others. NECA has steadfastly remained up to the challenge. Through the hard work of our External Communications Committee, NECA continues to represent a well-respected and credible voice advocating for the continuation of competitive markets in New England. We have commented on proposed legislation and testified on behalf of a fair and level playing field in several states. In addition, our Regulatory and Legislative Committee has kept the membership well informed of pending issues across the region.

I am very pleased that we have recently completed significant new improvements to NECA's website, making registering for NECA events more efficient, and creating a "NECA Members Only" section which will allow us to provide more benefits to our members. More details on these new features will be forthcoming soon.

After a very successful annual conference in Mystic, Connecticut, we have a very full agenda planned for the fall. Our monthly dinner speaker program continued with Paul Hibbard, Chairman of the Massachusetts Public Utilities Commission on September 6th and Phil Giudice, Commissioner of the Massachusetts Division of Energy Resources will be speaking on October 11th. We are also planning two day-long conferences, our Fuels Conference on September 27th and our Power Markets Conference on November 1st. To wrap up the year, we are going to try something new by taking a well-deserved breather from our packed technical agenda and hold a Holiday Reception at the Seaport Hotel in Boston on December 6th.

I look forward to seeing you all at our fall events.

Best wishes,

Frederick M. Sellars
President

Follow the initial registration steps for an upcoming event, and information for future events will be securely maintained in our database.

NECA Power Markets Conference
November 1, 2007
The DoubleTree Hotel
Westboro, MA

This past August, NECA launched a new, more improved website. Now if you are interested in becoming a member or attending one of NECA's many informative dinner meetings or conferences, you can do so with a few clicks of a button.

Remember, NECA membership has its privileges. Once you have logged onto the website as a member, you will have access to our Members Only Section - coming soon.

If you get stuck, or find that you need additional website assistance, you can always contact the NECA office at (781) 449-5959.

We're happy to walk anyone through our online registration, or answer any website questions you may have.

NECA is pleased to bring our members, free of charge, a new On-line News Service through our website. BTT Online News will proved weekly summaries of NEPOOL committee meetings and of FERC filings and orders of importance nationally and to New England. Once you have created your profile on our website as a member of NECA, you will be able to use the link to this service. Please visit the website now to set up your profile. www.necanews.org

Forming Expectations: The Emerging Capacity Markets of the Northeast and Mid-Atlantic

The ISOs/RTOs in the Northeast are in the early stages of implementing locational capacity markets. NYISO has had a Spot Capacity Market with sloped demand curves since 2003, while ISO-NE and PJM are in a transition phase. These capacity market mechanisms differ in key ways, but are all designed to reduce price volatility, encourage resources where needed, facilitate capacity transactions, and generally promote long-term resource adequacy objectives.

Resource suppliers, whether demand side, generation, or transmission, are assessing these new market structures to determine how and whether the capacity revenues can support new business plans for entry. Investors and financial institutions are undertaking similar assessments, as they know capital markets will be called upon to finance these assets. Marketers and Load Serving Entities are assessing how and in what ways to hedge pricing that will emanate from these markets.

NECA's upcoming Power Markets Conference will examine the expected performance of the three capacity markets, address emerging and unresolved critical issues and provide insights into the ultimate issue of "Will these Markets 'Work"? Experts and market participants with close familiarity in each of the markets will offer their views and opinions on these issues.

This year the annual NECA/CPES conference will be held in beautiful Newport, Rhode Island.

Last year's event in Connecticut was sold out.

Join us for the 15th Anniversary of this successful conference. Sponsorships and exhibit space are still available. Contact us now.

If you would like more information on our upcoming annual conference, please contact the NECA office at (781) 449-5959.

October 11, 2007
Board and Dinner Meetings
Speaker: Phil Giudice, Commissioner
Massachusetts Division of Energy Resources
Doubletree Guest Suites Hotel, Boston

November 1, 2007
Power Markets Conference
Doubletree Hotel, Westborough, MA

December 6, 2007
Board of Directors Meeting
Holiday Networking Reception
5:30 - 7:30 PM
Seaport Hotel, Boston

January 10, 2008
Board of Directors and Dinner Meetings
Doubletree Guest Suites Hotel, Boston

**DATE CHANGE**
February 12, 2008
Board of Directors and Dinner Meetings
Doubletree Guest Suites Hotel, Boston

March TBA
Renewable Energy Conference
Location TBA

May 13-14, 2008
15th Annual New England Energy Conference and Exposition
Hyatt Regency Hotel and Spa
Newport, RI

June TBA
Board and Dinner Meetings
Doubletree Guest Suites Hotel, Boston

For more information on NECA's upcoming Fuels Conference, its program, or any conference updates, click on our website:

WWW.NECANEWS.ORG

High natural Gas prices and the continued decline in production from many traditional supply basins coupled with stringent emissions regulations and growing electricity demand have raised concerns regarding the near and long-term fuel supplies that will be available for power generation in the Northeast. Will natural gas continue to be the fuel of choice for new generations in the Northeast? Will sufficient LNG terminaling capacity be sited to meet market demand? Will the gas infrastructure be sufficient to deliver these supplies?

On Thursday, September 27, 2007, you are invited to join the Northeast Energy and Commerce Association along with leading experts for an in-depth exploration of important fuel supply developments, the status of new LNG and pipeline projects, and emerging fuel technologies that will define the structure of generation resources that will serve the Northeast.