Neptune to Launch Open Season Bidding for Privately-Owned Transmission Service in U.S.

-- Neptune Regional Transmission System LLC (Neptune) will launch its "Open Season" auction of transmission rights on Monday, September 10 at 9 a.m. The Neptune system, Neptune RTS(TM), will connect New Brunswick, Nova Scotia, Maine, Boston, New York City, Connecticut, Long Island, and New Jersey. Neptune RTS(TM) will make it possible to deliver a total of 4,800 MW of electricity through a sub-sea high voltage direct current (HVDC) electric transmission grid into urban markets currently suffering through extreme power prices and high danger of blackouts.

The in-service dates for the project's four phases are: Phase 1 -- New Jersey, New York City, Long Island, 2003; Phase 2 -- New Brunswick, New York City, 2004; Phase 3 -- Nova Scotia, Boston, 2005; and Phase 4 -- Maine, Connecticut Shore, 2006. As each phase is completed, the additional links will have access to all other links.

During the Open Season, Neptune will solicit bids from eligible customers for transmission scheduling rights (TSRs) on a 20-year basis. On October 5, final binding bids will be accepted for Phase One and indicative bids will be accepted for Phases 2-4. On November 9, final bids will be accepted for Phases 2-4.

As a merchant facility, Neptune RTS(TM) represents an important departure from prior transmission projects, which have been built by utilities and approved by regulators on a cost-plus, rate-of-return basis. In addition, it will provide electricity from energy-rich markets in Maine, Nova Scotia, and New Brunswick to markets in major power-short Northeastern urban centers; it will stabilize prices in these centers and increase the overall reliability of the grid.

"The Open Season auction will provide a fair, open process for eligible customers such as utilities, generators, power marketers and gas producers to take advantage of this landmark opportunity," said Atlantic Energy Partners CEO Charles Hewett. Invitation-only bidders' information meetings are scheduled for September 5th in Houston, September 6th in Halifax, and September 7th in New York. The Open Season will commence on September 10th.