Regional Power Market Efficiencies May Save $368 Million

Savings Associated with New York Estimated at $212 Million a Year
RENSSELAER, N.Y.--(Business Wire)--
The Independent Market Monitor of the New York Independent System Operator
(NYISO) has announced that a preliminary analysis of the benefits of the
"Broader Regional Markets" initiative estimates regional annual savings of at
least $368 million. Estimated savings associated with New York are $212 million
a year.

The analysis, conducted by the Independent Market Monitor Dr. David Patton of
Potomac Economics, examined several of the "Broader Regional Markets" proposals
to improve coordination of power transactions between regional grid operators.

The NYISO, in conjunction with grid operators serving the Mid-Atlantic, Midwest
and New England regions of the United States and the Canadian province of
Ontario, proposed a series of "Broader Regional Markets" initiatives to the
Federal Energy Regulatory Commission (FERC) in January 2010.

"This analysis offers further evidence that improving the flow of power among
the grid operators will enhance the benefits of markets throughout the region,"
said Stephen Whitley, NYISO president & CEO.

The analysis of benefits focused on coordinated congestion management, "buy
through" of congestion and the improved utilization of external interfaces.

* Market-to-market coordination would increase the level of collaboration in
congestion management between system operators in the region.
* Buy-through of congestion would require that the congestion cost of a
transaction be charged based on the physical flow of power, unlike the current
settlement determination that is based only on the contract path.
* Inter-regional transaction coordination would lower total system operating
costs as transaction schedules more quickly adjust to market-to-market pricing
patterns.

"Progressive collaboration among power systems, such as the `Broader Regional
Markets` initiative, will offer additional benefits. It can help us take full
advantage of wind power and other variable renewable resources. Enhanced
coordination will strengthen the ability of grid operators to adjust to the
dynamic changes in system conditions, such as the ebb and flow of wind power,"
Whitley said.

The Independent Market Monitor`s analysis can be found on the NYISO website at
the following link: Preliminary Results of Analysis of the Broader Regional
Markets Initiatives

The topic of "Broader Regional Markets" will be discussed in detail at the
NYISO`s symposium on April 27, 2010, in Albany, N.Y. Information on the
symposium can be found on the NYISO website at the following link: Planning the
Sustainable Grid of the Future

The New York Independent System Operator (NYISO) is a not-for-profit corporation
responsible for operating the state`s bulk electricity grid, administering New
York`s competitive wholesale electricity markets, conducting comprehensive
long-term planning for the state`s electric power system, and advancing the
technological infrastructure of the electric system serving the Empire State.

NYISO
Ken Klapp, 518-356-6253
kklapp@nyiso.com
or
Howard Masto, 518-786-6488
howard.masto@mastopr.com

Copyright Business Wire 2010