AUS Consultants Announces Results of National Power System Survey; Trouble Ahead for Financing National Transmission System.

Energy Editors/Business Editors

MOORESTOWN, N.J.--(BUSINESS WIRE)--Dec. 3, 2003

In a just completed national survey commissioned by AUS Consultants, 53 percent of consumers said they would be at least somewhat willing to pay a 10 percent increase in their electric bills over the next 10 years to upgrade the nation's power system. However, more than 60 percent of consumers think the upgrade to the nation's transmission system should be paid for by entities other than consumers such as government, utilities and big power users.

AUS Consultants had 1,024 U.S. electricity customers surveyed from November 6 - 10 to assess their willingness to pay for the upgrade to the nation's transmission system to significantly reduce the likelihood of power outages such as the Northeast blackout in August. Half of Americans who were surveyed have experienced a blackout lasting 30 minutes or longer in the past 12 months, including the Aug. 14 blackout that is still fresh in their minds.

"We have seen reports on how much it would cost to upgrade the nation's power grid system, some report as much as $100 Billion and AUS thought it would be interesting to find out how willing or how much more consumers are willing to pay for the upgrades," says Andre Chon, vice president at AUS Consultants. "We know power reliability and the cost to provide reliable services, paid by consumers in utility tariffs, requires a delicate balance. Even with the memory of the Northeast blackout not far in distance, we find it troublesome that more than 40 percent of respondents are not willing to pay higher electric bills to improve the nation's power system."

AUS Consultants estimated that a 10 percent increase in residential bills over the next 10 years will equate to the $100 Billion that some say is the price tag to upgrade the nation's power grid system. Less than one-in-four said they are very willing to pay that amount.

Forty-five percent of consumers felt that upgrades should be paid for by the government and electric utilities themselves. One quarter of consumers felt that the government should pay for the upgrades, while more than 20 percent thought that the electric utilities themselves should pay for the upgrades.

"For the industry, it is encouraging to know that more than 50 percent of consumers are willing to pay, but it may not be nearly enough consumer support to ensure that our nation's aging power system will ever be upgraded," says Chon.

The survey results are based on 1,024 nationally representative telephone interviews conducted November 6 though November 10, 2003 and have a margin of error of plus or minus three percentage points. The study result is tabulated by four regions (Northeast, North Central, South and West) and by 10 NERC regions.

More information on the AUS Consultants' "National Power Grid Upgrade Survey" may be found at www.ausinc.com or by contacting Andre Chon at AUS Consultants at 856-234-9200 ([e-mail]) or Joe Jennings at 484-840-4390 ([e-mail]).