LEXINGTON, Mass., Nov. 12, 2002 -- American Electric Power signed an agreement in September to expand its deployment of the Excelergy Trader BackOffice™ software platform to support both its regulated and unregulated businesses.
The agreement marks a significant expansion of Excelergy's relationship with AEP, North America's largest energy generator and marketer.
"AEP's existing trading operation has worked very well with Excelergy's product during its initial implementation for power scheduling and market operations in ERCOT. Choosing the Excelergy product within our new regulated wholesale business allows AEP to leverage the investment and experience that went into building this software platform," said Ronald Erd, AEP's senior vice president of regulated generation, marketing and supply. "The Excelergy track record is solid and we believe they will deliver the required functionality needed as AEP joins the PJM market."
AEP has been using Excelergy Trader BackOffice to manage the trading, scheduling, settlement and market communications processes for its unregulated wholesale generation and trading business since early 2001. The latest agreement extends AEP's use of Trader BackOffice to manage its regulated generation and trading business as well. AEP has deployed Trader BackOffice for the ERCOT (Texas) market and will soon be using it as well in the PJM (Pennsylvania-New Jersey-Maryland) market.
"Leading global energy companies like AEP are demonstrating that you can improve cash flows and profitability by making your revenue cycles and back office operations run more quickly, efficiently and productively," said Bill Mahoney, president and chief executive officer of Excelergy Corporation. "What's more, these substantial investments in Excelergy platforms are proving to pay for themselves in a matter of months, not years. This is an exceptionally quick return compared to other systems of their kind."
Excelergy's powerful scheduling, settlement and market connectivity capabilities also have AEP well prepared for the transaction complexity and volume associated with FERC's Standard Market Design (SMD). SMD is aimed at implementing open, standard, well-functioning wholesale power markets. In North America, Trader BackOffice manages scheduling, settlement, shadow settlement, and ISO/RTO connectivity for ERCOT, PJM, ISO NE (New England), NY ISO (New York), CA ISO (California), Ontario and Alberta, among others.
About American Electric Power
American Electric Power, an energy company with a balanced portfolio of energy assets, owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the United States.
AEP is a wholesale marketer of energy commodities, utilizing its energy expertise and risk management skills to make optimal use of its generation, natural gas pipeline systems, natural gas storage, coal mines and inland barge fleet.
AEP is also one of the largest electric utilities in the US, with almost 5 million customers linked to AEP's 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio. More information is available at www.aep.com.
About Excelergy® Corporation
Excelergy is a provider of high performance software platforms that automate six mission-critical business processes--forecasting, trading, scheduling, billing, settlement and customer/partner acquisition and care--in the energy/utility industry and other restructuring markets.
Excelergy's highly flexible, scalable software platforms are based on an open, object-based, Web-based, native XML technology architecture. Winner of both the Red Herring 100 and UPSIDE Hot 100 awards for the world's top private companies, Excelergy has its North American headquarters in Lexington, Massachusetts, its European headquarters in London, England and its Asia-Pacific operations in Melbourne, Australia. More information is available at www.excelergy.com.