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New York ISO predicts thin power margins for summer

GUILDERLAND, N.Y., Feb. 25, 2003 — The New York Independent System Operator (NYISO) — the organization responsible for operating the State’s bulk electric system and administering its wholesale electricity markets — on Tuesday released its peak load forecast and capacity outlook for New York’s electricity system this summer.

The NYISO forecast anticipates that because of improvements to a number of existing facilities; the addition of a modest amount of new generation and the implementation of demand response programs by the NYISO and the utility companies to reduce demand during times of peak need, New York City, Long Island and the State as a whole should have adequate power supplies during the summer months of 2003.

The installed capacity required for New York State for the months of May through October 2003 is 37,087 MWs. (Installed capacity refers to the total amount of electrical power that suppliers commit to bidding into the New York State market). Currently, 36,527 MWs of installed capacity is available from in-state resources. Anticipated new generation, out-of-state capacity and the capacity that demand response programs produce, add to this in-state capacity to provide a total of 37,087 MWs.

For the New York City area, the locational installed capacity required for May-October is 8,816 MWs. The City’s installed capacity is currently 8,749 MWs. Additional capacity available from demand response programs will bring the total capacity to the required 8,816 MW.

Long Island has an on-island capacity requirement of 4,607 MW and currently meets this locational requirement.

“Despite the forecast for this summer, New York still needs to focus on getting new generators sited and built on an expedited basis. New York’s electric demand continues to rise and shows little sign of abating. Unless significant generating capacity is added to the system-and soon-demand is going to overwhelm supply and reliability will be at risk,” said William J. Museler, NYISO President and CEO. “Because of the two-to-three year lead time to build large baseload plants, if New York is to remedy this situation it needs to get a new siting law in place, plants approved and construction commenced immediately.”

A copy of the forecast is attached and can also be found on the NYISO website at www.nyiso.com.

The New York Independent System Operator (“NYISO”) — www.nyiso.com — is a not-for-profit corporation established in 1999 to facilitate the restructuring of New York State’s electric industry. Based in New York’s Capital Region, in addition to administering the State’s wholesale energy markets, the NYISO operates the State’s high voltage electric transmission system. Last year, the NYISO’s market volume exceeded $5.2 billion.