PA Consulting completes its certification of New England’s SMD market software

Six market software modules declared ready for March 1 market start

Washington, D.C., Feb. 21, 2003 — PA Consulting Group has completed its independent, third-party review and certification of the market clearing software for New England’s new wholesale electricity market.

The new market system, Standard Market Design (SMD), will introduce a new method of buying and selling wholesale power in New England. ISO New England Inc. operates the region’s bulk power system and the wholesale power exchange in New England.

“We are pleased to have been a part of ISO New England’s preparations for the start of New England’s new SMD wholesale electricity market,” said Joe Graves, Member of PA Consulting’s Management Group.

“The testing that we put the software through and the corrections that were made as a result of this testing should give participants in the New England market additional confidence. This software should perform appropriately to calculate the locational marginal prices and other market clearing outcomes in accordance with Market Rule 1, the New England Power Pool (NEPOOL) Manuals and the NEPOOL System Operating Procedures.”

PA Consulting Group followed a two-step process to review and certify the new market software.

First, PA assembled a complete detailed formulation from ISO New England and software vendor documents to determine whether the requirements of the market rules had been met.

Second, PA performed tests on six key market software modules following a testing plan designed to cover the full range of functionality for each of the software modules. PA determined that all six software modules reviewed are suitable for use as they produce results consistent with the market rules and, accordingly, PA has provided ISO New England with a certificate for each of the six modules.

Based on its review of the ISO New England’s SMD software, PA concluded that nothing found in the review and certification process should preclude the SMD market from opening as scheduled on March 1, 2003.

PA’s independent, third-party review and certification is complementary to ISO New England’s other testing activities including its integration testing and Market Trial testing. Based in part on these testing activities, ISO New England announced on February 6, 2003 that its redesigned market would become operational as planned on March 1st.

“We are pleased with the thoroughness of PA Consulting’s analysis,” said Gordon van Welie, President and CEO of ISO New England Inc. “Testing is an integral part
of software development and it was important for ISO New England to have an independent, third-party review before we moved to a ‘live’ market environment.”

The software certificates and other information regarding PA’s review and certification can be found on ISO-NE’s website at:
and; http://www.iso-ne.com/cmsmss/Standard_Market_Design/Certification/.

In addition to market software review and certification, PA Consulting also provides reliability certification services to utility clients. The PA Reliability Certification™ program provides clients a clear view of their current reliability data processes as well as specific suggestions for strategic improvement.

Participants also qualify for consideration for a ReliabilityOne™ award, which is given publicly on an annual basis to the best performing utilities in each region of the U.S.

About PA Consulting Group

PA Consulting Group is a management, systems and technology consulting firm, with a unique combination of these capabilities. PA has broad experience of establishing competitive energy markets around the world in Asia Pacific, Europe and the US.

Established almost 60 years ago, and operating worldwide from over 40 offices in around 20 countries, PA draws on the knowledge and experience of around 4,000 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.

PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration and flexibility in working with clients.