To Build Competitive Infrastructure

Austin – The Electric Reliability Council of Texas (ERCOT) today announced it has selected Andersen Consulting to develop and implement the infrastructure required for a reliable and robust competitive electricity market in Texas. Andersen Consulting will deliver capabilities and procedures so that ERCOT can control power flows, oversee market operations, track commercial transactions, and archive and retrieve the data needed to track these activities in a competitive market environment. Subcontractors that include Alstom ESCA, LODESTAR, and Regional Economic Research (RER) will support Andersen Consulting.

"Texas has chosen a unique approach to wholesale and retail competition, with ERCOT as Independent System Operator at the forefront," said Sam Jones, ERCOT executive vice president and chief operating officer. "To prepare for this new approach, numerous new business capabilities are necessary. We conducted a thorough review of proposals received and concluded that Andersen Consulting presented the best offering to meet our needs."

"We are delighted that ERCOT has chosen us to deliver the capabilities needed for this new market," said Keith Mueller, partner in Andersen Consulting's Utility Practice. "We are looking forward to working with ERCOT to help open the Texas electricity market."

Senate Bill 7, passed by the Texas Legislature in 1999, calls for retail competition in electric service to begin January 1, 2002, with a "competition pilot" beginning June 1, 2001. ERCOT, which today oversees the operation of some 60,000 megawatts of generation in Texas, will become the state's Independent System Operator, ensuring unbiased access to the state's electric transmission and distribution system for all buyers and sellers of electricity and serving as a clearinghouse for all electrical transactions.

Andersen Consulting is an $8.9 billion global management and technology consulting organization whose mission is to help its clients create their future. The firm works with clients from a wide range of industries to bring about far-reaching change by aligning their people, processes and technology with their strategy. Andersen Consulting has approximately 65,000 people in 48 countries. Its Internet home page is www.ac.com.