PJM Customer Load Reduction Pilot Program Approved

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August 4, 2000
Norristown, PA:

The Members Committee of PJM Interconnection, LLC approved a Customer Load
Reduction Pilot Program following approval last week by the Federal Energy
Regulatory Commission (FERC). The program targets existing on-site generation
and load management programs at facilities such as hospitals, hotels,
factories,
and stores during emergency conditions. After September 30th, the end of the
trial period for the program, the program will be evaluated to determine its
success. The evaluation will explore program improvements in order to enhance
the program as a way to address potential capacity shortfalls next summer.
Related procedures for interconnecting generation under 10MW will be discussed
through PJM's committee process for additional advisory input and will be
refiled for further consideration by the FERC after the stakeholder process.

The Pilot Program was designed through a collaborative fast-track effort of
the
PJM Distributed Generation User Group. Currently, there are 35 participants
registered for the program representing a total of 61.5 MW. The smallest of
these generators represents 200kW and the largest represents 15MW. This user
group's efforts are consistent with the Federal Energy Regulatory Commission's
recent initiative to support interim procedures to assist with the on-going
efforts to maintain a reliable electric power system during the summer months.

Distributed generation benefits the system by either reducing demand or
providing additional generating resources. The pilot program is designed to
provide additional flexibility during times of peak demand. It is not meant
to
replace PJM's successful generation interconnection process which deals with
generation projects applying to become part of regional capacity or to
interfere
with the Active Load Management ("ALM") programs that are in operation.

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