---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 09/08/2000 
08:38 AM ---------------------------


taylorci@pjm.com on 08/31/2000 03:29:14 PM
Please respond to taylorci@pjm.com
To: pjm-customer-info@risc1.pjm.com
cc:  (bcc: Vince J Kaminski/HOU/ECT)
Subject: FW: Press Release - Testimony of PJM President to the Pennsylvani a 
PUC



Message sent from the pjm-customer-info mailing list at 
pjm-customer-info@majordomo.pjm.com:


> The following press release was issued today:
>
> PJM EXECUTIVE DESCRIBES SUCCESS
> OF POWER GRID IN MID-ATLANTIC REGION
>
> (HARRISBURG, Pa. Aug. 31, 2000) - Phillip Harris, Chairman and CEO of PJM
> Interconnection, LLC, North America's largest centrally-dispatched 
electrical
> system, testified before the Pennsylvania Public Utility Commission this 
week
> on the reliability and affordability of electricity in the state.
>
> PJM, which became the first fully operational Independent System Operator in
> the U.S. on January 1, 1998 is responsible for the reliability of the bulk
> power transmission system and to facilitate an open, competitive wholesale
> electric market.
>
> PJM is responsible for coordinating the transmission of more than 58,000
> Megawatts of electricity over 8,000 miles of power lines it uses to get 
power
> from 540 generating stations to more than 24 million customers.
>
> The Interconnection serves 8 percent of the country's population, which is
> spread throughout the Pennsylvania, New Jersey, Maryland, Delaware and
> northern Virginia region. PJM is the third largest entity of its kind in the
> world, behind Tokyo Electric and France's grid-the whole country.
>
> PJM's duties also entail administration of the energy market, which now 
takes
> place over the Internet. The commodities-like exchange is facilitated by 
PJM's
> custom-built eBusiness tools. Technological and process innovation have
> enabled PJM to manage more than $4 billion in the energy market in the past
> three years, achieve a 96 percent customer approval rating and has secured 
the
> reliability of grid through peak demand days.
>
>  In his testimony, Harris outlined the underlying principles of why PJM has
> been successful in the new energy marketplace:
>
>
> -more-
> 2/3
>
> Transition Process
>
> Moving from a government regulated entity to a deregulated market model is a
> complicated process. PJM took an incremental and methodical approach to
> deregulation by taking measured steps and evaluating the results of the
> transition after each step to ensure reliability of the existing services.
> What is now a five-market system, began with a single market and was phased 
in
> over two years.
>
> Governance Model
>
> To ensure fairness in the market, PJM chartered a two-tier governance model
> that includes a fully independent board that is supported by advice from a
> Members Committee.
> The model provides a forum for member debate and a process to develop
> collaborative solutions. PJM's more than 200 members as well as stakeholders
> can have a voice and confidence that change to business rules will occur
> fairly, collaboratively, and efficiently.
>
> Power Exchange Function
> The success of the PJM Power Pool and the continued combination of the
> reliability and market functions within the new PJM ISO were the most
> efficient and cost effective transition to the future.
>
> The connection of both functions within one organization, that is 
financially
> independent of both transmission and generation facilities, system
> modifications and market innovations required to assure reliability can move
> forward quickly and efficiently, without artificial barriers to
> implementation.
>
> Long-Term Reliability
>
> The reliability of the grid and the market is dependent upon the free flow 
of
> information to PJM members and stakeholders.
> Using tools like the eData application, PJM members can view Real Time 
Energy
> Market prices on public Internet pages every five minutes for approximately
> 2,000 hubs, zones, and significant locations throughout the PJM region. The
> information-rich environment has initially drawn the interest of 30,000
> additional Megawatts of capacity to join the PJM region, which translates 
into
> greater reliability.
>
> -more-
> 3/3
>
> Transmission Expansion Process
>
> PJM is increasing the services it provides to the growing economy and the
> population. Competition, growth and reliability of the market and grid is
> further aided by a well-planned, FERC-approved expansion process that
> anticipates an additional 15,000 Megawatts added to the PJM region over the
> next five years.
> An additional 20,000 Megawatts are planned to be added in the future, 
ensuring
> an abundant pool of power to meet increasing demand.
>
> Collaborative Process
>
> The innovative two-tier governance for PJM and management of the grid and
> market includes all stakeholders, regulators and traders and provides a 
forum
> other groups to be part collective collaborative membership process.
>
> Needs of the Customer
>
> PJM is attentive to making the system responsive to the changing needs of 
the
> customer. New internet-based tools and five different markets provide PJM
> members with flexibility to create a portfolio of transactions to best suit
> their dynamic needs.
>
> The eSuite of tools (eFTR, eDocuments, eSchedules, eCapacity, eData) and PJM
> Open Access Same-Time Information System (OASIS) empower members and
> stakeholders with the information they need to make informed decisions about
> their power needs and policies.
>
> These tools provide the public with valuable information such as market
> pricing, daily load, transmission system information and much more. The
> openness of the information exchange ensures fair conduct of the market.
>
> Continuous Improvement
>
> Innovation is the key to successfully managing the diverse interests of 
PJM's
> rapidly increasing membership. Additional Internet tools are in development 
to
> support its evolving role as an Independent System Operator.
>
> More information on PJM and the energy market can be found at PJM's website:
> www.pjm.com
>
>
> ###
>
>
>
> Sincerely,
>
> Cynthia Taylor
> Manager, Customer Relations and Training
> PJM Interconnection, L.L.C.
>

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