ALSTOM Software Paves the Way for A Standard Market Design for Regional Transmission Organizations

Business Wire, April 4, 2002

Business Editors & Technology Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--April 4, 2002

ALSTOM (NYSE:ALS) announced today that its software product e-terracommit(TM) has successfully demonstrated its ability to solve large resource commitment problems associated with large-scale regional transmission organizations, paving the way for a standard market design.

The e-terracommit(TM) product, developed by the Energy Management and Markets Business within ALSTOM's Transmission and Distribution Sector (T&D), provides forward scheduling of generation resources.

In recent tests, conducted in conjunction with PJM Interconnection L.L.C. (PJM), which operates the world's largest wholesale electricity market, the latest version of e-terracommit(TM) convincingly demonstrated its ability to successfully handle a system design containing 3,150 generating units, 355,000 MW of capacity, and a study peak demand of 300,000 MW -- more than five times larger than PJM's system, and larger than the Midwest Independent System Operator (MISO), PJM, and Southwest Power Pool (SPP) systems combined.

In addition to operating the world's largest competitive wholesale electricity market, PJM also manages one of North America's largest power grids. Recently, PJM, MISO and SPP announced plans to form a joint and common energy market, which would serve 26 states, the District of Columbia and the Canadian province of Manitoba.

A prevailing issue surrounding a standard market design for emerging large Regional Transmission Organizations (RTOs) has been concern regarding the ability of the technical software to solve large unit commitment problems. This concern has been addressed and resolved by ALSTOM's e-terracommit(TM).

"The ability to address large-system models, using standard PC equipment, and to do so securely and successfully, is critical to the nation's development of standardized market designs," said JD Hammerly, Vice President, ALSTOM T&D Energy Management and Markets America.

According to Andy Ott, General Manager of Market Coordination at PJM, solving the large-scale unit commitment problem is critical to continuing the development of larger regional energy markets and the implementation of standardized market designs. Ott said: "PJM is proud to be working with ALSTOM to find innovative and successful methods to solve these energy market/system challenges. We are extremely pleased with these results and will continue our efforts in tandem with ALSTOM."

ALSTOM's e-terracommit(TM) product provides the forward scheduling of generation resources required for secure and stable power system operation. It is an essential part of the market clearing process for standard market design, in which market participants may choose any combination of self-scheduled or pool-committed generating resources. In addition to features required to support the standard market design, e-terracommit(TM) additionally supports such functions as fuel and cascaded-hydro system optimization. e-terracommit(TM) is part of the e-terra family of products and services which caters to the whole range of deregulated energy market needs.

ALSTOM is the global specialist in energy and transport infrastructure. The Company serves the energy market through its activities in the fields of power generation, power transmission and distribution, power conversion and the transport market through its activities in rail and marine. ALSTOM has annual sales in excess of 22 billion euros and employs 120,000 people in over 70 countries. The Company is listed on the Paris, London and New York stock exchanges.

ALSTOM Transmission and Distribution Sector, through its Energy Management and Markets Business, is a leading supplier of energy and information technology and solutions. It pioneered the development of product-based, real-time control systems for electric utilities and has marketed its products to the energy industry as well as other industries worldwide for nearly a quarter of a century.

The e-terra(TM) family of products and services are trademarks and/or service marks of ALSTOM ESCA Corporation (DBA: ALSTOM T&D Energy Management & Markets).