ISO New England Awards Contracts for Summer Emergency Generation, Load Reduction in Southwest Connecticut

HOLYOKE, Mass., Apr 16, 2002 (BUSINESS WIRE) --

ISO New England Inc., which oversees the region's electric power system, today announced it has awarded contracts for more than 80 megawatts (MW) of emergency generation, new peaking generation and reductions in electricity use in Southwest Connecticut this summer. The added supply and reduced demand are intended to compensate for possible transmission line failures in Southwest Connecticut, ranked by the Federal Energy Regulatory Commission as one of the nation's top 10 reliability risks.

"Southwest Connecticut faces an uncertain summer," said Stephen G. Whitley, ISO New England's Senior Vice-President and Chief Operating Officer. "Because the region imports much of its power from other parts of the state, New England, Canada and New York, it is dependent on an aging and overtaxed transmission system. The integrity of the system in this region is at risk. Today's actions are designed to reduce the risk of power failures this summer until we can make long-term improvements to the transmission system."

ISO New England awarded three contracts:

-- Berkshire Power Development, Inc. of Boston, Massachusetts for 69.25 MW of new peaking generation and 8 MW of emergency generation;

-- Connecticut Municipal Electric Energy Cooperative of Norwich, Connecticut, for 2.3 MW of emergency generation and 2.025 MW of load reduction; and

-- Connecticut Light and Power of Hartford, Connecticut, for up to 2 MW of load reduction.

The total 83.575 MW exceeds the 80 MW target included in ISO New England's February 2002 request for proposals, "2002 Load Response Program Southwest Connecticut Emergency Capability Supplement." The RFP is a supplement to the broader solicitation for demand side response throughout New England this summer.

ISO New England's region-wide energy conservation, or "demand response," program is designed to curtail electricity usage during hot summer days. Newly enhanced this year, ISO New England is providing additional financial incentives for companies that are located in heavily congested areas to participate in the program. Companies located in SWCT are eligible for these additional financial incentives.

The demand response program provides financial incentives for medium-to-large electricity users to reduce electricity consumption during periods of peak usage. The program compensates users for reducing electricity consumption at ISO New England's request and for monitoring and controlling their consumption in response to real-time, wholesale market prices. Enhancements to the program are scheduled to go into effect May 1, 2002.

"We have proposed a coordinated, comprehensive solution for Southwest Connecticut's energy problem," said Whitley. "Short-term, we need emergency generation and conservation to help avoid blackouts, which is what we are doing today. Long-term - over the next several years - we need to upgrade the region's transmission system and strengthen transmission links in Connecticut."

ISO New England Inc. is the not-for-profit corporation responsible for the day-to-day reliable operation of New England's bulk generation and transmission systems with an installed capacity of more than 28,000 megawatts. In addition to operating the bulk power grid, ISO New England is the administrator of the region's wholesale electricity marketplace and the Open Access Transmission Tariff on behalf of the New England Power Pool.

ISO New England Inc. Ellen Foley (413) 535-4139 or The Hubbell Group, Inc. Dominic Slowey (781) 878-8882

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