2001
US electric customers benefit from market model used by PJM
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02 July 2001
Washington, DC. PA Consulting Group, a global management, systems and technology consulting firm, today released 'PJM - Electric Power Competition That Works', a case study, which responds to the growing concerns over the restructuring and deregulation of electric power, particularly in California.
California's difficulties have served to greatly increase public awareness of electric power restructuring in the U.S. and have elevated the attention given to electric power issues among policymakers, as seen in the recent White House National Energy Policy. However, California is not the only market model for electric power restructuring and competition. PA's paper explores PJM's success in operating the largest competitive wholesale power market in the world, attracting new investment to meet growing demand, producing the reasonable electricity prices that are a distant memory in California and avoiding rolling blackouts in the mid-Atlantic region.
"PJM's success can be attributed to many factors. It was fortunate to have a successful history of cooperation among regional utilities and a very capable existing staff, but it also has maintained flexibility to alter its market design and operations to address issues as they have arisen," stated Joe Graves, member of PA's Management Group. "PJM has pioneered the development and implementation of sophisticated market pricing and congestion management techniques, as well as leading-edge market interface software applications, while working within a practical framework of building a successful market structure in a considered step by step process."
"This case study provides a powerful counterpoint to those who would like to turn back the clock on electric power competition," said Phillip G. Harris, president and CEO of PJM. "Our market model provides a blueprint for a working competitive marketplace that has been refined during four years of successful operation. The model creates a robust, competitive, wholesale electricity market which is the foundation of reaching the regulatory and public goals of reliable power at a fair price."
For more information, please contact:
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| Susan Mayer |
| PA Consulting Group |
| 1750 Pennsylvania Avenue |
| Washington, DC 20006 |
| United States |
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Tel: +1 202 442 2650 |
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Fax: +1 202 442 2001 |
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E-mail:
susan.mayer@paconsulting.com |
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Notes to editors
PA Consulting Group is a leading management, systems and technology consulting firm, with a unique combination of these capabilities. Established almost 60 years ago, and operating worldwide from over 40 offices in more than 20 countries, PA draws on the knowledge and experience of almost 4,000 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.
PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA works with clients to improve performance, mobilize human resources and deliver change effectively, including managing major projects, and designing and implementing enterprise-wide systems and full e-business solutions.
PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.
PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration, and flexibility in working with clients.
We are proud that our clients say, "PA makes it happen".
Background: the Energy Practice at PA Consulting Group
The Energy Practice at PA Consulting Group delivers a wide range of strategies for leading electricity, water, natural gas and petroleum companies in the U.S. and worldwide. Taking a creative problem solving approach, we work with our clients from insight to implementation, addressing both current and future needs as liberalization, globalization, and e-business radically change the nature of the market and of trading activity.
Companies are increasingly being exposed to risk and the expectations of both customers and capital markets, as they strive to create value. Those who respond in the right way can create enormous opportunities for growth. PA provides the strategic and implementation insights and processes for companies to succeed. Open to innovative ways of doing business, including success-fee driven work, the Energy Practice is at the leading edge of the competitive process in energy.
In addition to its dedicated staff of nearly 300 professionals, the Energy Practice combines the skills of energy specialists with industry knowledge and technical expertise, building on a team of almost 4,000 people working in over 40 offices in 20 countries. The Energy Practice works with nearly 40 of the 50 largest global energy companies as well as with many of the creative niche players with operations in North America, United Kingdom, France, Scandinavia, Australia, New Zealand, Southeast Asia, Japan, Argentina, and Brazil. With an outstanding record across industry and government, our experience covers market structure and regulation, strategy development, asset valuation, network performance, supply chain and asset management, trading and risk strategies, e-business, retail strategies and litigation services.
Our clients and our people recognize that PA is dedicated to assisting Energy companies as they face the challenge, delivering unique industry insights and innovative end-to-end solutions.
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