Two of world’s largest power grids agree to collaborate

NORRISTOWN, Pa., Jan. 23, 2001 (PRNewswire) à‚– Two of the world’s largest power grids, PJM and RTE, the French Transmission System Operator, signed an agreement today to share technical knowledge and information to help address mutual goals of power systems and energy market operations.

RTE Director, Andre Merlin, appointed by the French Ministry of Energy as the head of RTE, is expecting very much from this agreement. “RTE has 50 years of experience in operating the largest control area in the world and PJM is one of the most successful ISOs, operating different kinds of markets in a deregulated environment. We will learn from each other; it is a win-win agreement.”

PJM, which operates the world’s largest competitive wholesale electricity market and North America’s largest power grid, combines Internet technology and innovative market rules to run its real-time wholesale energy market.

“We are excited to share and develop best practices with RTE. The solutions created through this collaborative effort will help us face our common challenges such as the resolution of `seams’ issues while recognizing the physical complexities of power systems,” said Phillip G. Harris, PJM Chairman and CEO. “We hope to leverage our collective technical experiences to create the model to power both systems in the twenty-first century.”

The two power grid leaders will exchange information that will help prepare each system to meet the world’s rapidly increasing demands for reliable and affordable power.

The agreement outlines three goals:

à‚– To achieve a rational, safe, and expeditious transition to more competitive electric environments by cooperating on technical innovation, best practices, lessons learned, and the development of systems to operate competitive markets.

à‚– To combine the knowledge of the two large, multi-state integrated power systems to foster a competitive electric environment.

à‚– To determine the best practices available to provide efficient and convenient interfaces to market participants.

A Liaison Committee, consisting of senior management representatives from both organizations, will be formed to develop a plan for achieving these goals and oversight of the plan. PJM and RTE plan to conduct employee exchanges and open discussions on Internet solutions, communications, and other technologies.

PJM’s successful formula of Internet technology and innovative market rules has been sought by many national power systems from around the world. More than 70 nations, including Bosnia, the Czech Republic, Australia, China, India, New Zealand and the Ukraine, have sent delegations to PJM for presentations on the market model and the operation of the grid.

RTE is a division within Electricite de France (EDF), the French integrated utility, managed independently from the other activities of EDF. It operates the power grid of France and is comprised of 100,000 km of extra high and high voltage lines, supplying more than 30 million customers.

PJM operates the world’s largest competitive wholesale electricity market and North America’s largest power grid. PJM currently coordinates a pooled generating capacity of over 58,000 megawatts and has more than 200 participants in the marketplace.

PJM has administered more than $5 billion in energy and energy services trades since the regional markets opened in 1997.

SOURCE: PJM Interconnection, L.L.C.

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