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Con Edison Public Information
Richard D. Mulieri, Director
(mulierir@coned.com)
Telephone: (212) 460-4111, Office Hours,
(212) 460-6981, All Other Times

For Immediate Release: January 6, 1997

MARKET-BASED ELECTRIC POWER AND FUEL RATES
MEANS THAT CON EDISON'S MEGAWATT-HOUR STORE WILL BE BUSY IN 1997

Con Edison has filed a request with the Federal Energy Regulatory Commission (FERC) to allow its Megawatt-Hour Store to sell bulk power at market-based rates. Currently, rates which are set by FERC tariff(s) at the incremental cost of power plus a small margin. Cost-based rates are set by published tariffs and allow only a small profit margin.

"The ability to sell power at market rates will increase the Megawatt-Hour Store's flexibility and help prepare Con Edison for the new competitive environment," said Ken Bekman, the Store's Proprietor. "The Megawatt-Hour Store began operation in 1993 and quickly became a major player in the bulk power market. With the approval of this FERC filing, we expect to enlarge our trading activities to rates which are set by FERC tariff(s) at the incremental cost of power plus a small margin. Cost-based rates are set by published tariffs and allow only a small profit margin.

"The ability to sell power at market rates will increase the Megawatt-Hour Store's flexibility and help prepare Con Edison for the new competitive environment," said Ken Bekman, the Store's Proprietor. "The Megawatt-Hour Store began operation in 1993 and quickly became a major player in the bulk power market. With the approval of this FERC filing, we expect to enlarge our trading activities to a larger geographic area and provide better deals," he added.

In order to comply with FERC's code of conduct, which requires the separation of bulk power transactions from transmission system operations, the Megawatt-Hour Store has moved out of the Con Edison's Energy Control Center and into the company's corporate headquarters. This physical move allowed the company's fuel procurement function for its fossil power plants to be integrated with bulk power trading.

"We have always purchased large quantities of oil and natural gas for our power plants. Now we can optimize both fuel and bulk power transactions in order to act as an arbitraging agent," said Gary Keevill, Con Edison's Megawatt-Hour Store Manager of Fuel Resources. "This will allow the Store to simultaneously trade in both markets, electricity and fuel," he added.

Parties wishing to conduct bulk power or fuel transactions through Con Edison's Megawatt-Hour Store can call Ken Bekman at 1-888-MEGAWAT (1-888-634-2928).




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