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ISO New England and PJM Interconnection Propose a
Standard Market Design for Wholesale Electricity Markets

March 29, 2001 - HOLYOKE, MA -  Two of the country's leading wholesale
electricity market administrators, ISO New England Inc. and PJM 
Interconnection,
L.L.C., together with ALSTOM ESCA Corporation, a systems developer for 
electric
utilities, today announce their intent to formalize an agreement that will not
only standardize their electricity markets, but will lead, they believe, to 
the
standardization of wholesale electricity markets across the country.

Today, ISO New England delivered a letter to the Chairman and Commissioners of
the Federal Energy Regulatory Commission (FERC), enclosing a report concerning
its proposed comprehensive wholesale market program that combines salient
features of the PJM market model with elements of its own existing wholesale
market design.  The combination would create a standardized wholesale market
structure called the Standard Market Design for wholesale electricity markets
("Standard Market Design").

ISO New England, ALSTOM ESCA and PJM, acting through its wholly-owned
subsidiary, PJM Technologies Inc., have agreed to proceed with the negotiation
of an agreement where ISO New England will purchase the existing PJM market
design and certain software components from ALSTOM ESCA and PJM.  The two ISOs
and ALSTOM ESCA will work together to create a standardized market design that
includes solutions to reserve markets and a common solution to unit dispatch.

"This new market standard should put into place the necessary market
improvements more quickly and at a reduced cost than if we were to implement a
customized market system for New England," said William W. Berry, Chairman and
Acting CEO of ISO New England.  "Now is the time to stop the experimentation.
Ultimately, we hope the Standard Market Design will serve as the benchmark for
wholesale electricity marketplaces across the country, if not around the 
world."


"PJM is very excited to further standardize a design for a competitive 
wholesale
electricity market," said Phillip G. Harris, Chairman and CEO of PJM. "Along
with the progress in the implementation of the PJM West concept, this 
initiative
will provide an even broader standardized market design."

This approach should further expedite the elimination of trading barriers 
across
different markets and promote FERC's goal of creating a seamless marketplace.
"We intend to continue to work with the New York ISO on issues of mutual
importance," stated Mr. Berry.  "This new market design, together with our
efforts to address the market "seams" and other coordination issues, will
eventually bring the three northeast ISO markets closer together."  ISO New
England and the New York ISO will continue to work together on these issues
under a joint board resolution passed on January 16, 2001.

"Because of our geographic location, New York is in the center of the 
Northeast
markets, with ISO New England, PJM and IMO each on one of our borders.  We
support the continued elimination of barriers across Northeast trading markets
to develop a more seamless marketplace where everyone will benefit," said
William J. Museler, President and CEO of the New York Independent System
Operator. "The New York ISO will continue to work with our neighboring markets
to remove barriers to trading across the region and to move towards larger
regional markets."

This proposed market design standard will be developed jointly with 
stakeholder
input. ISO New England will propose the Standard Market Design to the New
England Conference of Public Utility Commissioners and the New England Power
Pool in a series of meetings next week.  Additional meetings will be conducted
in the next few weeks. The Standard Market Design for New England will be
subject to FERC approval.

"Standardization requires consistent and reliable technology to facilitate a
market's efficiency.  A market that moderates price fluctuations and 
encourages
investment based on an expected return is an efficient market -- and 
efficiency
is the key to establishing market liquidity," said Alain Steven, CEO of ALSTOM
ESCA.  "In the future, this agreement will be viewed as a catalyst in
establishing more robust electricity markets."

ISO New England Inc. is the not-for-profit corporation responsible for the
day-to-day reliable operation of New England's bulk generation and 
transmission
systems with an installed capacity of almost 26,000 megawatts.  In addition to
operating the bulk power grid, ISO New England is the administrator of the
region's wholesale electricity marketplace and the Open Access Transmission
Tariff on behalf of the New England Power Pool. ISO New England is based in
Holyoke, Massachusetts.

The PJM Interconnection, L.L.C., is an Independent System Operator,
administering the PJM Open Access Transmission Tariff and operating the PJM
Energy Markets and Capacity Markets. PJM currently administers the largest
wholesale electricity market in the world and has a membership of more than 
200.
It is headquartered in Norristown, Pennsylvania. PJM Technologies, Inc. is a
wholly-owned subsidiary of PJM Interconnection, L.L.C., designed to respond to
market opportunities by bringing cost-effective, reliable solutions to the
energy marketplace. It was created to commercialize PJM's knowledge capital,
experience, and proven success in electric energy markets, system operations,
and applications development.


# # #

For more information about the New York ISO, please call: Steve Sullivan,
Director of Communications, 518-356-7605.




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