The Board of Directors of ISO New England Inc., operator of the region's bulk power system and wholesale power market, January 16, 2003 voted unanimously to pursue the creation of a Regional Transmission Organization for New England. ISO New England will work with the New England transmission owners to seek the input and advice of all market participants, regulators, and other stakeholders to prepare a joint petition for the Federal Energy Regulatory Commission (FERC) to propose the formation of an RTO for New England.

"After carefully evaluating our options, we have found that a Regional Transmission Organization for the six-state region best serves New England's interests," said Gordon van Welie, President and CEO of ISO New England Inc. "With a New England RTO, we will be able to address wholesale electricity market 'seams' and standardization, to ensure that New England's marketplace remains efficient and competitive, while maintaining the reliability of the bulk power system."

The Board of Directors for ISO New England has worked closely with its market participants, regulators, and other stakeholders to determine the organization's future. After careful consideration, the Board concluded that forming a New England RTO advances ISO New England's aim to solidify its organizational structure and to move toward the FERC's goal in creating RTOs nationwide.

"Establishing an RTO for New England enhances the critical role ISO New England plays in the region, including transmission planning, reducing seams to eliminate trading barriers with our neighbors, and ensuring robust wholesale market operations," noted van Welie.

ISO New England will continue to build on the cooperation that has been established with neighbors in Canada and New York to ensure more efficient and seamless wholesale markets in the broader Northeast region.

ISO New England plans to work with the transmission owners on a process for meeting with and considering the input of stakeholders as the two entities draft the joint filing. In the next few months, ISO New England will continue to work with transmission owners and other New England Power Pool market participants, as well as the New England Conference of Public Utility Commissioners (NECPUC) and other stakeholders to solicit input and finalize plans for the creation of an RTO for New England.