GP: Wind Fits Easily into Power Markets

["Tom Gray" <tomgray@igc.org>]

Wind Energy Fits Easily Into Wholesale Power Markets, According to Platts
Research Report
Business Wire -- April 25, 2002

BOULDER, Colo.--(BUSINESS WIRE)--April 25, 2002--A recent report by Platts
Research and Consulting's E Source Green Energy Service, says that newly
developing wholesale power markets are well suited to incorporate wind
generation.

Platts is the energy information, research, consulting and marketing
services business of The McGraw-Hill Companies (NYSE:MHP).

"Utilities considering developing wind generation don't need to ask whether
it's technically feasible to integrate wind generation into wholesale
markets -- it is," said Eric Hirst, a renowned expert on bulk-power
reliability and wholesale energy markets, and co-author of the report.

Such integration is increasingly possible because of the open and
competitive wholesale-energy markets now developing around the country.
"These markets have considerable flexibility, which can accommodate the lack
of control, unpredictability, and volatility inherent in wind-farm output,"
says Hirst.

The report, Wind Energy: Integrating an Intermittent Resource, explores the
technical and economic questions that are being raised as a result of the
rapid development of wind energy. "Market rules that dictate how wind energy
is valued are a huge unknown -- they still vary by region within the U.S.,"
says Adam Capage, director of the E Source Green Energy Service at Platts
Research & Consulting.

Just over 1,700 megawatts (MW) of wind generation was added to the U.S.
electric grid in 2001 -- a 65% increase in wind capacity in just one year.
Technological advances, favorable tax credits, and state policies mandating
renewable generation have all contributed to this rapid development of wind
generation.

The report states that the real issue for utilities and wind generation
developers and policy makers is the increased system cost of integrating
wind energy. "Somebody has to pay for the generators that offset the
variability of wind output. I think wind generators ought to pay for the
costs they impose on the system," says Hirst. "The good news is that we can
calculate those costs and decide what is fair -- blanket statements that
suggest wind energy is impractical because it is intermittent are just not
true."

The E Source Green Energy Service is a membership-based service designed to
assist utilities with "green pricing" renewable energy.

Platts is the world's largest and most authoritative provider of energy
information and marketing services, with 14 offices worldwide. Products
range from real-time and Internet-based news and price assessment services,
to newsletters, market reports, databases, geospatial tools, magazines,
conferences, research and consulting services and energy financial services.
Platts offerings cover the oil, natural gas, electricity, nuclear power,
coal, petrochemical and metals markets. Every day, more than $10 billion of
trading activity and term contract sales are based on Platts' price
assessments. Additional information is available at www.platts.com and
www.plattsmetals.com.

Founded in 1888, The McGraw-Hill Companies is a global information services
provider meeting worldwide needs in the financial services, education and
business information markets through leading brands such as Standard &
Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more
than 350 offices in 33 countries. Sales in 2001 were $4.6 billion.
Additional information is available at www.mcgraw-hill.com.

    CONTACT: Platts
             Jim Keener, 720/548-5624
             james_keener@platts.com
             or
             RFBinder Partners
             Kristin Sadlon, 212/994-7540
             kristin.sadlon@RFBinder.com

08:31 EDT APRIL 25, 2002
Copyright © 2002


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