APX Commodity Exchange Promises to Revolutionize Northeast Energy Markets; When Are Kilowatt-Hours Like Pork Bellies? When They Are Traded On An Exchange.

ALBANY, N.Y.--(BUSINESS WIRE)--Oct. 27, 1998--Ed Cazalet, Chairman and Chief Executive Officer of Automated Power Exchange ("APX"), announced today that APX will open a new electric commodity exchange for the New York power market.

APX's new computerized exchange will offer buyers greater choices, reduced prices, and sellers new markets for their products.

"Our state-of-the-art software allows end-users, ESCOs, generators, marketers, and traders to sit at their desks and manage their power needs with a few keystrokes and mouse clicks," said Cazalet. "More importantly, because our electricity market is structured like other commodity markets, it will be familiar and more easily adapted to individual business strategies than other available options."

"The linchpin of the APX strategy is the marriage of two megatrends: electronic commerce and energy deregulation. Quite simply," Cazalet continued, "our goal is to make buying and selling power so easy that anyone will be able to do it using only an Internet browser."

APX offers low cost electricity markets where buyers and sellers trade hourly and daily electric energy ahead of delivery, operating 24 hours a day, seven days a week. Participants make voluntary offers to buy or sell electricity over secure Internet connections at mutually acceptable prices. To ensure complete impartiality, APX and its employees are not allowed to take positions in the market. APX successfully opened a similar electric commodity exchange in California on March 30, 1998.

"The APX exchange allows buyers and sellers to find each other anonymously, efficiently, and simply. It also offers buyers the option, unavailable in any other organized market, of locking in their electricity prices a week or more in advance. In so doing, it will reduce the price of power in New York State," said Cazalet.

Cazalet noted APX's special enthusiasm for so-called green power initiatives. "As we now do in California, APX plans to offer a full-service APX Green Power Market. That market allows customers the option of buying their power from environmentally preferred technologies. We have the active support of a number of major New York environmental organizations, and are working closely with them to develop appropriate standards for the products that will trade in APX's New York Green Power Markets."

"We are very excited about this opportunity to help create a competitive energy market in New York. APX has already established an experienced New York presence and will inaugurate our market the day the ISO goes into operation. This commitment has been made possible only with the extraordinary cooperation and enthusiastic support of New York's independent power community, the state's large industrial customers, government officials, and especially the staff of its infant Independent System Operator," said Cazalet. The ISO start-up date is now estimated at April 1, 1999.

Several major participants in the new deregulated electric market hailed APX's announcement.

"As a longtime advocate of competitive electricity markets, IPPNY is very excited about APX opening a power exchange in New York State. The road to electric deregulation in New York has been long and winding, with more than its share of bumps along the way. Today's announcement by APX puts us on the freeway to competition," said Carol Murphy, Executive Director of the Independent Power Producers of New York, Inc.

"Our clients recognize that a vibrant retail electric market requires many buyers and many sellers. We also recognize that unless those buyers and sellers can get together, a market will not develop. We believe that Automated Power Exchange will be offering a service of considerable value to potential buyers, and we wish them well in their venture," said Algird White, an attorney representing Multiple Intervenors, an association of the state's largest industrial and commercial customers.

Cazalet noted that APX made its decision to set up its first satellite operation outside of California based largely on the state's new business-friendly atmosphere. "Under the leadership of Governor Pataki and PSC Chairman Maureen Helmer, New York has created a business climate and an electric market that eschews state-mandated monopolies in favor of competitive solutions. New Yorkers have gone out of their way to make us welcome here," said Cazalet. "We intend to return the favor by providing services that the market wants."

The announcement was made in conjunction with the 13th Annual Membership Meeting and Conference of the Independent Power Producers of New York, Inc. at which Cazalet spoke.

Automated Power Exchange is a privately owned firm based in Silicon Valley. APX's sole business is to develop and operate markets for electric energy, transmission, and related products.