APX Extends Its Environmental Registry to Support Connecticut Energy Efficiency and Conservation Objectives.

State of Connecticut and New England Power Pool (NEPOOL) Show U.S. Leadership in Cost Effective Management of Conservation and Demand Management Programs

SANTA CLARA, Calif. -- APX, Inc., a leading provider of technology, operations and professional services for the energy industry and environmental markets, announced today that it has been contracted to extend its Environmental Registry Solution in NEPOOL to handle the State of Connecticut's new Distributed Resources Portfolio Standard (Class III). The Standard establishes a market-based approach that will enable the state to achieve increasingly demanding tiered targets in energy efficiency, demand-side resources and conservation through 2010.

"The State of Connecticut determined that extending the New England Power Pool Generation Information System ('NEPOOL GIS') was by far the most cost effective way to deliver and manage the Class III Program. We don't need to reinvent the wheel," said David Goldberg of the Connecticut Department of Public Utility. "Citizens of Connecticut are the ultimate beneficiaries of these energy efficiency and conservation programs. Their efficient administration is enabled by APX technology and services, which we know and trust."

"Connecticut's leadership in Energy Efficiency will be an example to other states considering similar programs. The way in which Class III provides market-based incentives for demand response programs, load management and curtailment, and efficient heat and power cogeneration in a unified framework is groundbreaking," said APX Chairman and Chief Executive Officer, Tom Lewis. "We are privileged that we can support the State of Connecticut in this important work. We know that others nationally and internationally will be looking to Connecticut's approach as a new best practice," added Mr. Lewis.

"We are pleased that the NEPOOL GIS continues to be the platform for compliance with the various programs in New England that require the power used to serve customers have certain environmentally beneficial attributes," said Dennis Duffy, chairman of NEPOOL's Generation Information System Operating Rules Working Group. "We think that Connecticut's decision to use the NEPOOL GIS to demonstrate compliance with its new Class III standard is confirmation of the usefulness of the system for both regulators and market participants."

Eligible Class III resources include the following resource types located in the State of Connecticut:

* Conservation & Load Management (C&LM) measures, certified by using the C&LM fund program Technical Reference Manual.

* Combined Heat and Power (CHP) resources, such as co-generation facilities that achieve average annual fuel-conversion efficiency of 50 percent will be eligible.

* Demand Response (DR) resources, based on MWh savings. The credits will be issued to resources registered and participating in the ISO New England (ISO-NE) DR programs, based upon the MWh reductions monitored by ISO-NE.

Connecticut Public Act 05-01, "An Act Concerning Energy Independence" established the requirement that electric suppliers and electric distribution companies obtain 1 percent of their generation supply from Class III resources beginning January 1, 2007. This increases to 2 percent in January 2008, then to 3 percent in January 2009, and finally 4 percent in 2010. The entire Class III functionality will be deployed in the GIS production system by January 1, 2007 when the Class III program becomes effective.

APX operates and administers the New England Power Pool Generation Information System. The GIS verifies and manages the Renewable Energy Certificates (RECs) that are the basis for environmental trading and investment incentives in the New England states, and monitors emissions of all generators producing and/or selling power in the ISO-NE Control Area. Class III Certificates will adhere to the same principles as all other Certificates issued in the NEPOOL GIS, particularly, that a single Certificate will be created for each 1 MWhr of generation or load reduced.

About APX, Inc.: APX is North America's leading provider of environmental registry solutions for markets in renewable energy and greenhouse gases, as well as corporate environmental management. APX technology is now the system of choice for every major renewable energy registry in the North America, including the PJM, NEPOOL, WECC, and ERCOT markets. APX also provides technology, strategic consulting, and expert operational services to assist wholesale power market participants reduce costs and improve performance in power scheduling, settlement, market operations, and demand response programs. Clients include utilities, merchant companies, financial institutions, wind power generators, retail service providers, ISOs/RTOs, and other electricity market participants. A privately held company, APX is headquartered in Santa Clara, CA. More information is available at www.apx.com.

About Connecticut Dept of Public Utility Control: The DPUC, an arm of the executive branch of state government, derives its authority from Title 16 of the Connecticut General Statutes. Its purpose is to ensure that utility customers receive adequate service at reasonable rates and that the utility companies are operating efficiently. The DPUC has full regulatory responsibility for investor-owned, gas, water and incumbent telecommunications companies in Connecticut. It also regulates the state's two electric distribution companies and licenses competitive telecom and electric supply companies. Safe, adequate and reliable service provided with consumer service protections in place continues to be the Department's mandate as it evolves in a changing utility environment. For more information visit: http://www.state.ct.us/dpuc/.

About NEPOOL: NEPOOL is a voluntary association of more than 290 participants in the New England bulk power system. NEPOOL advises ISO New England Inc. on the operation and administration of the New England transmission system and wholesale power markets in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. More information is available at www.iso-ne.com.