PJM undergoes and successfully completes SAS 70 type II audit

VALLEY FORGE, Pa., Oct. 15, 2001 – PJM Interconnection, L.L.C., 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.

SOURCE: PJM Interconnection, LLC

Authors

Previous articleABB wins US$360 million order for Chinese power link
Next articleFoster Wheeler names Raymond Milchovich chairman, president and CEO

No posts to display