Siemens announces deal with Alliance RTO

ATLANTA, Oct. 29, 2001 – Siemens Power Transmission & Distribution, Inc. (SPT&D), an affiliate of Siemens Corporation and Siemens AG, announced today that it has contracted with Alliance Regional Transmission Organization (ARTO) to implement information management applications from its Energy Management & Information Systems division.

The system is currently undergoing market trials and is scheduled to be operational by November 15.

“Siemens has a long and successful history of building comprehensive energy management and information systems for large utilities. But in this case our relationship with ARTO allows for further implementation and facilitation of competitive electric markets through a business model that provides flexibility for the future of their organization,” said Jan van Dokkum, president and CEO, SPT&D.

Utilizing the innovative Application Service Provider (ASP) business model, Siemens enables ARTO the ability to deliver an information management system without the need to invest in the hardware or other resources to support it. With the Siemens ASP business model in place, the computer hardware required to support the applications are at the service provider’s secure server farm, and the users access the applications over the Internet.

According to van Dokkum, the Siemens ASP model offers cost savings estimated at approximately half that of implementing the same applications delivered through a traditional system and support infrastructure. It is also low risk in nature, because a customer can commit to just a few years of service.

This ASP business model allows ARTO to pay for these service applications via a monthly fee without the need to purchase the infrastructure formerly required to support all of the applications.

With ARTO’s membership including nine major utilities and serving a population of approximately 41 million people in 11 states, having a service model that makes it easy to add additional users, upgrade systems and provide third-party applications, allows for increased functionality and flexibility for the organization now and in the future.

“The success of this pioneering business concept will demonstrate that even the largest utility entity can take full advantage of modern e-business technology to greatly reduce their operating costs and respond to their changing needs more rapidly and efficiently,” said van Dokkum.

The following applications are provided to ARTO as part of the Siemens ASP model:

* Transmission reservation system (OASIS)

* Real-time Imbalance Engine – redispatches generation in the most economical manner when load and generation are unbalanced.

* Inter Control Center Protocol (ICCP) for data exchange with other utility entities

* Market User Interface

* Historical information system with energy accounting

* Information Model Manager – provides a standard CIM-compliant source for database for ARTO’s network information

* Economic Dispatch and Unit Commitment to optimize generation use for the best long-term economics

* Load Forecasting with a five minute forecast increment

* Electronic transaction tagging and scheduling

* Enterprise integration – subsystems are interconnected via an enterprise integration bus, providing the flexibility to seamlessly plug in future components

* ARTO-specific business rules are applied to the applications

About Siemens Power Transmission & Distribution (USA)

Siemens Power Transmission & Distribution, Inc., headquartered in Raleigh, NC, creates innovative equipment and energy service solutions for electric utilities, independent power producers, co-generators and other energy-intensive industries. It has operations in Orlando, FL; Wendell, NC; Jackson, MS; Lafayette, IN; Minneapolis, MN; San Jose, CA; Atlanta, GA and Reynosa, Mexico. For more information visit http://www.ptd.siemens.com.

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