ERCOT Selects APX to Supply Information Technology System For Texas Renewable Energy Credit Trading Program.

Business Editors/High-Tech & Energy Writers

AUSTIN, Texas--(BUSINESS WIRE)--Dec. 20, 2000

The Electric Reliability Council of Texas (ERCOT) today announced that it has selected Automated Power Exchange(R) Inc. (APX(R)) as the information technology (IT) supplier for the Texas Renewable Energy Credit (REC) Trading Program. APX, a leading provider of e-commerce infrastructure services for the electric power industry, will provide the computer system that ERCOT will use to administer program accounting functions and to allow trading of the credits by renewable power generators among energy retailers and other REC participants.

"The REC system is intended to most efficiently meet the regulatory compliance and market incentive requirements for this program established by the Public Utility Commission of Texas," said Tom Noel, CEO of ERCOT, the REC Trading Program administrator appointed by the Public Utility Commission of Texas. "In making this selection, we thoroughly reviewed vendor proposals received and concluded that APX presented the best offering to meet our needs."

Said Rich Amen, APX CEO, "APX is pleased to have been selected by ERCOT to provide this system for the Renewable Energy Credit Trading Program. We will leverage our experience in providing similar solutions in other markets."

The Texas REC Trading Program aims to increase the installation of renewable energy technologies by an additional 2,000 megawatts by 2009. One megawatt hour of certified renewable power generated equals one credit, which represents the extra value of that energy over that of non-renewable power. The use of credits allows trading of a verified megawatt hour of renewable energy among generators, competitive retailers, or other REC participants.

Comparable to an online financial banking service, the APX-supplied IT system will allow qualified members of the Texas wholesale power market to register for the REC Trading Program on the Internet. Through this portal, generators will be able to record transfers of their credits, and retailers will be able to record the credits they need to match consumption. The availability of account statements and other information online will save participants time in record keeping and compliance report preparation.

APX will deliver an operational prototype system by April 30, 2001, for use in ERCOT's mock market trails, and the system will be fully deployed by June 1, 2001, concurrent with the start of the Texas Choice Pilot. The APX Houston Office, led by Director Rosalie Day, will manage the work on this contract, which will draw upon the company's nearly three years of experience in renewable energy credit services in other areas of the U.S.

ERCOT helps keep the lights on in Texas and is one of ten regional reliability councils in North America. The organization oversees the operation of over 65,000 megawatts of generation and 37,000 miles of transmission lines in the State of Texas. More information is available at www.ercot.com

Automated Power Exchange provides the core market and scheduling technologies and services needed to support power system administration and operates Internet-based exchanges and clearinghouses for the buying and selling of electric power, renewable power, and related products. A privately held company, APX has its world headquarters in Santa Clara, Calif., and its European headquarters in London. More information is available at www.apx.com.