FW: New Release issued today - PJM is first Independent System Operator to Undergo and Successfully Complete SAS 70 Type II Aud

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< For Immediate Release
< PJM is first Independent System Operator
< to Undergo and Successfully Complete SAS 70 Type II Audit
< Intense audit confirms PJM's market settlement system
< is designed and operating within stringent standards
<
< (Valley Forge, PA. - October 15, 2001) - PJM Interconnection, L.L.C.,
< administrator of the world's largest competitive wholesale energy market and
< operator of the electric grid for the mid-Atlantic region, today announced the
< successful completion of a Statement on Auditing Standards (SAS) 70 type II
< audit. Performed by the independent firm of PriceWaterhouseCoopers (PwC), the
< audit indicated that PJM market settlement processes have achieved a
< comprehensive set of control objectives designed to protect the integrity of
< market settlement data. PJM, the nation's first fully functioning Regional
< Transmission Organization (RTO), is the only Independent System Operator that
< has successfully completed this type of audit. By accomplishing the SAS 70
< type II audit, PJM provides assurance to its 200 members that the information
< and activities they rely on from PJM are operated in a well controlled and
< risk managed environment.
<
< "We are pleased with the results of this audit and proud to be able to
< demonstrate to our members that our control and business practices meet
< stringent guidelines," said Phillip G. Harris, PJM president and chief
< executive officer.
<
< PJM voluntarily participates in this rigorous and comprehensive review. The
< audit encompassed all control objectives related to the PJM market settlement
< process as well as PJM's eSuite of tools - the information technology
< infrastructure that supports the multiple PJM markets. According to PwC's
< findings, the controls that were tested were operating with sufficient
< effectiveness to provide reasonable assurance that the specified control
< objectives were achieved during the time period covered by the audit.
<
< PJM has voluntarily initiated both SAS 70 type I and type II audits. Both
< reviews evaluate the design of the internal controls surrounding processes and
< application systems, as well as the suitability of the design capabilities to
< achieve specific objectives. The recently completed type II audit is more
< comprehensive in that it also evaluates and tests whether the designed
< processes are operating effectively over a specific period of time. PJM will
< continue to volunteer in this intense type II audit process on an on-going
< basis. The company has already commenced the next SAS 70 type II audit
< process.
<
< PJM, the country's only fully functioning RTO, operates the world's largest
< competitive wholesale electricity market and one of North America's largest
< power grids. The company currently coordinates a pooled generating capacity
< of more than 59,000 megawatts and operates a wholesale electricity market with
< more than 200 market buyers, sellers and traders of electricity. PJM has
< administered more than $5 billion in energy and energy service trades since
< the regional markets opened in 1997. More than 70 nations have sent delegates
< to PJM to learn about the market model and the operation of the grid in the
< mid-Atlantic states.
<
< ###

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