CPS Energy Selects ABB and The Structure Group to Deliver End-to-End Applications to Support Qualified Scheduling Entity Role in ERCOT Market

Market Wire, November, 2005

ABB and The Structure Group announce that they have been selected by CPS Energy to deliver end-to-end applications in support of its role as a qualified scheduling entity (QSE) in the Texas energy marketplace. CPS Energy of San Antonio is the fourth ERCOT market participant to independently select ABB's and Structure's applications to support their QSE functions.

"ABB and Structure were chosen because we believe their respective products have been successfully integrated in other deployments," Mark Werner, CPS Energy director of energy market operations, said.

As the prime contractor, ABB will provide a generation management system (GMS) that will enable CPS Energy to dispatch its 26 coal- and gas-fired generation units in the ERCOT market. The system is slated for ERCOT certification in mid-December with additional functionality to be delivered by May of 2006. At that time, the GMS will incorporate direct interfaces with plant remote terminal units (RTUs), enhanced emissions modeling, and an accounting function with direct connections to CPS Energy's MV90 metering database. The contract also includes a 5-year "evergreen" maintenance agreement.

"CPS Energy decided on the evergreen concept of ongoing system enhancement in an effort to ensure they always have up-to-date capabilities," notes Rafael Ochoa, Vice President and General Manager of ABB's Network Management unit. "We're seeing more and more companies, both in generation and T&D, arrive at the same conclusion."

CPS Energy selected Structure's nMarket™ software platform to assist it with all data communication to and from the market operator (submits, notifications, queries) and warehousing real-time market decision support information (clearing prices, volumes/forecasts, meter reads, billing determinant information). Structure nMarket will allow CPS Energy to bid directly into the Ancillary Services (AS) and Balancing Energy (BE) markets, perform shadow settlements and track disputes with ERCOT. CPS Energy will also leverage Structure's scheduling and deal capture functionality to support its business needs. Market participants who leverage the Structure nMarket product account for a majority of the megawatts that are scheduled and bid into the ERCOT market.

"The partnership between ABB and Structure should benefit CPS Energy because of its aggressive 13-week implementation schedule," Structure principal Vikki Gates Cuddy said.

About CPS Energy

CPS Energy is the nation's largest municipally owned energy company providing both natural gas and electric service. Acquired by the City of San Antonio in 1942, CPS Energy serves more than 630,000 electric customers and more than 310,000 natural gas customers in and around the eighth largest city in the United States. Proceeds from CPS Energy remain in San Antonio and account for more than one-fifth of the City's annual operating budget for police and fire protection, street improvements, parks and other services. CPS Energy has earned the highest financial ratings of any electric system in the nation, and the company's bills rank among the lowest of the nation's largest cities. More information about CPS Energy can be found on the Web at www.cpsenergy.com.

About ABB

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 103,000 people. The company's North American operations, headquartered in Norwalk, Connecticut, employ about 12,000 people in 20 manufacturing and other major facilities.

About The Structure Group

The Structure Group is a leading provider of energy trading business solutions and consulting services to market participants in North America and Europe. Established in 1998, Structure has experience working with organizations in all stages of the energy value chain. Structure introduced nMarket™ in 2000 to assist energy organizations with the bidding, scheduling, dispatch and settlement of energy trades and ancillary services in regional power markets. Power marketers who participate in the California, ERCOT, Midwest, New England, New York, PJM, SPP and Ontario markets are currently using the product. For more information about The Structure Group, visit www.thestructuregroup.com or contact us directly at contact@scgo.com.

CONTACT: Bob Fesmire ABB Phone: 408-857-1394 Email: Email Contact Laurie Bollig The Structure Group Phone: 913.221.6923 Email: Email Contact