N.C. load serving entities select Gestalt as third party for transmission planning

Camden, N.J., August 22, 2005 — Gestalt, a business and IT firm providing strategy and decision technologies to the defense and energy and utilities industries, announced that it has been selected by North Carolina’s investor-owned, municipal and cooperative electric utilities, to serve as the independent third-party for North Carolina’s regional transmission planning initiative. The initiative is designed to enhance the access and reliability of the Duke Power and Progress Energy Carolinas transmission systems.

An oversight steering committee composed of representatives of ElectriCities of North Carolina, the North Carolina Electric Membership Corporation, Progress Energy Carolinas and Duke Power was established to manage the planning process. In its role, Gestalt will facilitate the oversight committee’s management of the transmission planning process and the participation of other stakeholders such as marketers and independent power producers.

“This initiative is an innovative approach by North Carolina’s electric utilities to address one of the most critical issues facing our industry today — investment in the regional transmission system,” said Mark Rossi, who directs Gestalt’s Global Energy & Utility Practice. “We look forward to working with all the stakeholders involved to develop a region wide transmission plan that ensures long-term reliable service to the customers within North Carolina.”

In May 2005, North Carolina’s electric utilities executed an agreement that established the framework for a collaborative long-term transmission planning process within the state. As part of that agreement, it was determined that an independent third party should facilitate the process.

“Gestalt was selected because of its industry knowledge and because it has worked with nearly every Independent System Operator and Regional Transmission Organization in the United States,” said Clay Norris, ElectriCities Division Director-Planning and chair of the oversight committee. “The electric utilities are looking forward to working with Gestalt to develop a cost-effective, comprehensive long-term transmission plan for North Carolina that represents the interests of all stakeholders.”

North Carolina’s transmission planning process is separate from Duke Power’s proposal before the Federal Energy Regulatory Commission to retain the Midwest Independent System Operator to serve as an Independent Entity and monitor of the operation of the company’s transmission system.