Air Pollution Control Equipment Services, Emissions

New England Power Pool gains ability to do electricity environmental compliance reporting on-line

SANTA CLARA, Calif., May 2, 2002 — APX, a provider of transaction processing services for the electric power industry, announced that it has completed the development of an Internet-based generation information system (GIS) for the New England Power Pool (NEPOOL). This system will help to efficiently verify retail electric supplier compliance with various green power regulations in New England.

The system is the first of its type in the U.S. and is designed to account for the attributes of all of the electricity generation settled in a control area. The system brings the convenience of Web-based applications to reporting the amount of nonrenewable and renewable power production and the amount of certain pollutant emissions.

“NEPOOL, ISO New England Inc., and representatives of state energy and environmental regulatory agencies throughout New England together created the concept for this system,” said Dennis Duffy, chair of the NEPOOL GIS advisory committee and vice president, Energy Management, Inc. “Our goal was to devise a system that would most effectively meet the needs of our members, as well as the regulators and residents in our region.”

Operated by APX as a service, the system will begin operating in July to produce certificates reflecting the fuel source, emission, and labor characteristics of the power settled within the NEPOOL control area, an electric system encompassing most of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Approximately 300 generators, power traders, and retail electric suppliers representing 125 million megawatt hours of electricity annually are expected to use the system. Training will be conducted in May.

With the system, load-serving entities can efficiently account for and report their compliance with state environmental standards that encourage increased renewable energy production and limit the production of certain emissions. Standards set by individual New England states include: minimum renewable power purchase levels for retailers; disclosure regulations that require electric retailers to describe the fuel source and other characteristics of the power they sell; and maximum levels of pollutant emissions. Generators can account for fuel types and emissions, and transfer to retailers electronic certificates that verify fuel types, emissions, and other characteristics.

Each company can access its account statements and other information on an Internet portal, saving time in record keeping and compliance report preparation for the appropriate state agencies. As a result, many compliance reports can be prepared in a matter of minutes, rather than hours.

“This system exemplifies the benefits of efficient infrastructure services in complex, multi-party power market transactions, whether those parties are market participants, renewable generators, or regulators,” said John Yurkanin, APX president and CEO. “APX draws upon its domain expertise in all of these energy sectors as well as our technology competencies in providing a service that meets the needs of NEPOOL participants and their constituents.”

Said John M. Melby, APX senior vice president, North America, “APX is pleased to have completed system development on schedule. We look forward to serving the needs of NEPOOL participants in the coming years.”

The generation information system consists of a secure Web portal, a database system, and supporting subsystems based on industry-standard hardware components and Windows®-compatible applications. APX has a five-year contract with NEPOOL for development and operation of the generation information system.

APX has developed similar systems that serve California, Illinois, Ohio, and Texas, giving it unmatched expertise in generation information and renewable energy credit systems.

About NEPOOL:

NEPOOL is a voluntary association of more than 200 participants in the New England bulk power system. Under an interim independent system operator agreement with NEPOOL, ISO New England Inc. operates and administers the New England transmission system and wholesale power markets in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. More information is available at www.iso-ne.com.

About APX Inc.:

An independent transaction processing agent for wholesale electric power markets, APX processes more than 500 million megawatt hours per year for approximately 200 client companies in North America and Europe. Services include trading platforms and brokerages, scheduling, clearing, settlement, and market infrastructure systems. A privately held company, APX has its main office in Santa Clara, Calif., and regional offices in: Connecticut; Houston, Texas; London, England; Oslo, Norway; and Stavanger, Norway. More information is available at www.apx.com.