ADVISORY/Power Industry Crisis of Confidence Requires New Framework for Workable Competitive Power Markets; `Energy Restructuring At a Crossroads': CERA & Accenture Study.

Business/Energy Editors

ADVISORY...for Tuesday (March 5)

WASHINGTON--(BUSINESS WIRE)--Feb. 28, 2002

The first comprehensive study defining the basic elements needed to create workable, competitive power markets will be outlined at a briefing in Washington on Tuesday, March 5th.

In the wake of recent events, on the heels of the California power shortage and the most recent bankruptcy filings, there exists a crisis in confidence within the United States power markets. The study, "Energy Restructuring at a Crossroads," by Cambridge Energy Research Associates (CERA) and Accenture, has involved more than 40 energy companies, industry associations and regulators in an effort to identify the basic elements that must be in-place for competitive markets to function.

"For a competitive electric power industry to emerge from the crisis of confidence currently gripping many industry participants, a specific minimum set of market, regulatory, financial and strategic requirements must be met," said CERA Senior Director of North American Electric Power Larry Makovich. "The United States power industry is at a restructuring crossroads of three paths: it can continue along the path of experimental deregulation, backtrack to comprehensive regulation, or move forward to power markets that work," said Francis X. Shields, Accenture Partner for Competitive Energy Markets. "Building the path to workable power markets requires building a consensus around lessons learned from power markets that work. This study is a first attempt to identify the basic elements needed for the industry to move forward."

Study highlights, recommendations and policy options will be released in a briefing:

      WHO: Larry Makovich, CERA Senior Director of North American
         Electric Power
         Francis X. Shields, Accenture Partner, Competitive Energy
         Markets
         Keith Mueller, Accenture Global Managing Partner, Utilities
         Industry Practice

      WHAT: Media briefing: "Energy Restructuring at a Crossroads"
          (teleconference participation available for media outside
          the Washington, D.C. area)

      WHEN: Tuesday, March 5, 2002, 8:30 a.m.

      WHERE: The Willard Inter-Continental Hotel, Taylor Room (Ballroom
           level)
           1401 Pennsylvania Avenue, Washington, DC

Media are also invited to attend a luncheon keynote address by Federal Energy Regulatory Commission Chairman Pat Wood, III, which will include responses to the report and comments on FERC's Market Design Initiative. The noon luncheon in the Pierce Room will be followed by a media Q&A in the Taylor Room at 1:30 p.m. in which Chairman Wood and industry participants, including utilities and regulators, will offer their reactions to the study and recommendations. Both the morning briefing and the luncheon/Q&A will be available to media via interactive teleconference.

Media may register to attend the briefing and/or luncheon in person or by teleconference by contacting Stacie McLain at Sommers & Associates, 713/222-1600, [e-mail].

Cambridge Energy Research Associates is a leading advisor to major international companies, financial institutions and organizations, delivering strategic knowledge and independent analysis on energy markets, geopolitics, industry trends and strategy. CERA is headquartered in Cambridge, Mass., and has offices in Bangkok, Beijing, Calgary, Houston, Mexico City, Moscow, Oakland, Oslo, Paris, Sao Paolo, Seoul and Washington, D.C.

Accenture is the world's leading management and technology services organization. Through its network of businesses approach -- in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities -- Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended Aug. 31, 2001. Its home page is www.accenture.com.