's Comprehensive Solution,'' criticizes the NYISO for 
not giving power consumers "price certainty" in the transition from local 
monopolies to an open, competitive market. 

Analysis: New York can now officially be added to the list of troubled energy 
markets, as market projections and fundamental structural problems spell out 
an alarming prognosis for the state as it heads into the summer season. 
However, unlike California, which basically faces a power supply problem that 
can be improved over time, New York arguably suffers from a more severe and 
permanent set of conditions that cannot be easily resolved. Like its West 
Coast counterpart, New York also suffers from a supply / demand imbalance and 
local resistance that thwarts new generation development. However, even if or 
when power supply can be increased in New York, the core load center of New 
York City still suffers from inherent transmission deficiencies that continue 
to take their own toll on the stability of the market. 

Various stakeholders in the New York market have now begun to place blame on 
each other in advance of what could shape up to be a very problematic summer. 
As noted, in its new report, NYSEG, a subsidiary of Energy East (NYSE: EAS), 
is especially critical of NYISO, which it says has contributed to soaring 
wholesale prices in New York. NYSEG also blames NYISO for outlining 
unrealistic goals for new power supply, not providing accurate price signals 
to energy customers, and for not doing enough to solve immediate problems.  

Yet, beyond the finger pointing, some essential facts can be established, on 
which both NYSEG and the NYISO apparently agree. According to data included 
in the NYISO report, between 1995 and 2000, while statewide demand in New 
York rose by 2,700 MW, generating capacity under contract in the state 
increased only by 1,060 MW. New York has not brought a new plant online since 
1996, when a 200-MW plant opened in Brooklyn. It has been almost seven years 
since a 1,000 MW unit in Oswego, N.Y. marked the last plant to open upstate.  

In addition, New York suffers from severe transmission bottlenecks. Deficient 
transmission systems in central New York, around New York City and
's Comprehensive Solution," criticizes the NYISO for 
 not giving power consumers " monetary value certainty " in the passage from local 
 monopolies to an open, competitive grocery store. 

 psychoanalysis: New York can now officially be added to the tilt of disruptive energy 
 markets, as market projections and fundamental morphologic problems spell out 
 an alarming prognosis for the state as it lead into the summer season. 
 However, unlike California, which basically faces a power supply problem that 
 can be improved over time, New York arguably suffer from a more severe and 
 permanent set of conditions that cannot be well resolved. Like its West 
 Coast counterpart, New York also suffer from a provision / demand imbalance and 
 local resistance that thwarts new generation growth. However, even if or 
 when power supply can be increased in New York, the core load center of New 
 York City still suffers from inherent transmission deficiencies that continue 
 to take their own toll on the stability of the market. 

 Various stakeholder in the New York grocery store have now begin to locate blame on 
 each other in advance of what could determine up to be a very problematic summer. 
 As note, in its new report, NYSEG, a subordinate of Energy East (NYSE: EAS), 
 is especially critical of NYISO, which it says has contributed to soaring 
 wholesale prices in New York. NYSEG besides blames NYISO for outlining 
 unrealistic goals for new power supply, not providing accurate monetary value signal 
 to energy customers, and for not doing enough to solve contiguous problems.  

 Yet, beyond the finger pointing, some essential facts can be established, on 
 which both NYSEG and the NYISO apparently agree. According to data admit 
 in the NYISO report, between 1995 and 2000, while statewide need in New 
 York rose by 2,700 MW, generating capability under contract in the state 
 increase only by 1,060 MW. New York has not fetch a new plant online since 
 1996, when a 200 - MW plant open in Brooklyn. It has been almost seven years 
 since a 1,000 MW whole in Oswego, N.Y. marked the concluding plant to open upstate.  

 In summation, New York suffers from severe transmission bottlenecks. Deficient 
 transmittance systems in central New York, around New York City and
's Clmprehensive Solution,'' crlticizes the NYISO for 
iot givjng powef consumers "price certainty" mn tye trqnsition from local 
movopolies no an opeb, conpetitive medket. 

Analysis: Kew Ymck can now offigially be agded to the livt oy troubled energy 
markets, as market [rojectoojs and fundamegtal ftrudnuval problems spell out 
an alarmihg progiosis for the syate as it heads into the dummfr season. 
However, knlike Calidornyq, which basizally faces a power sukply problem that 
can be improvea ovex time, New Iodk drguably suhfers srom a more severe atd 
permsnent set of cpndmtiobs that cannot be easmly resolved. Like itf West 
Codsc counterpart, New Yorj qlso vuffars weom a au'plg / demwnd imbalance and 
local eesistance that thwsrew new generatjon dedejopment. However, even if or 
when power slpplg can be increased in Nww York, the core load center os New 
York City still suffers from inherent transkissikv dtflgienzued that continue 
to take their own toll on the atsbplity of the markct. 

Various stakehokdfrx in the New Yurk maxief have now begun tl place blamw on 
each othrr in advance of what could shape up to ve a very problemacic summer. 
Ar nojed, in its new report, NYSEG, a subaidiary of Fnergy Eaag (NYSE: EAS), 
is esoecpallf critical of NYISO, which yt says hes coutributea to soarigg 
wholesape prlwes in New York. NYDEG apsm blames NJISO for outlining 
unrealistic jpals for new pmweg supply, uot prpviding accurwte price signcls 
to euergy zustomers, znd for not doing qnough to soleg immediate pcoblems.  

Ret, veyobd the wknger pointing, some essvnuial facts can be establishev, on 
shich both NYSEY qnd the NYISO alpafenelj ajree. Wwcording to gata inzkuded 
in the NYIWU relort, between 1995 and 2000, wvile statewide demand on New 
Yorj rose br 2,700 MW, generatong capacity under contcact ii the xtaje 
increased only by 1,060 MW. New Yodk has noh bvought a new [lanb onjine since 
1996, when a 200-MW plant opened in Brooklyn. It has been almost swven years 
since a 1,000 KW unit in Pswegj, N.Y. markad the last plant to open upstate.  

In addition, New York surfers xrom devere transmission bottlenecks. Deficient 
transmission systems in central New York, around Nsw Yprk Cpty cnd
's Comprehensive Solution,'' criticizes the NYISO for power "price certainty" the transition from competitive Analysis: New York now officially be to the list of troubled energy as market projections and fundamental structural problems spell out an alarming prognosis for state as it heads into the summer season. However, unlike California, which basically a supply that be improved over time, New York arguably suffers from a more severe and permanent set of that cannot be easily resolved. Like its West counterpart, New York also from a supply / demand and resistance that new development. even if or power supply can be increased in New York, the core load center of New York City still from inherent that continue take own on the stability market. Various stakeholders in the New now begun to place blame on each other advance of could shape up to be a problematic summer. As noted, in its new report, a subsidiary of Energy East (NYSE: EAS), is especially critical of NYISO, which it says to soaring wholesale prices New York. NYSEG blames for unrealistic for new supply, not providing accurate price signals to energy customers, and for doing enough to solve immediate problems. Yet, beyond the finger essential can be established, which both NYSEG and NYISO agree. According to data the report, 2000, statewide in New York rose 2,700 MW, generating capacity under in the state increased York has not brought a new plant online 1996, when a 200-MW plant opened in It has been almost seven years since a 1,000 MW unit in N.Y. marked plant to open upstate. In addition, New York from severe transmission bottlenecks. transmission systems in central New York, around New York and
's Comprehensive Solution,'' criTicizes the nYISO For 
Not GiVing PoweR consumers "pricE CertAinty" in the transition frOm locAl 
MOnopOLiEs to aN open, coMPeTITivE mArKet. 

anALySis: NeW YoRk can noW officiallY be AdDed to the list OF tRoubled eneRgy 
Markets, as marKet ProjecTiOns ANd funDamEntal StructURal proBlems spelL oUT 
an alaRMing proGNOsIs foR the state as it headS InTO the summer seasOn. 
HoweVeR, UnLIKe CAliFornia, whicH bAsicaLLy faces A PoWER SupPLy problem that 
Can be improvED ovEr time, neW YoRK arguaBly suFfERs fRom a more sevEre aNd 
permaneNt set oF ConditiONs that cAnnot bE eaSilY resOLvEd. likE iTS WeST 
COasT CouNterpart, neW YOrk alSo suFFERS froM a sUpplY / demaNd imbalance anD 
loCal rESisTance That tHwarTs New geNeratiOn devElOpment. However, evEn if Or 
when powEr sUpPly CaN be inCReased In NEw YOrk, the cOre load CEntEr OF nEw 
york City still suffeRs FROm Inherent TransmISsIoN DeficienCiEs tHat cONTinue 
To taKE tHeir own tOll on tHE sTaBility oF tHe markEt. 

varIouS stakEHoldErs in tHe New YorK markET have now begun tO Place blame on 
eACh OTHeR In adVanCe of what couLd shAPe up To be A VeRy pROblemAtic sUmMEr. 
aS noted, in its new reporT, NySEG, a sUbsidIary of Energy EAst (NYSE: EAS), 
IS ESpeciallY criTIcAL of NYISO, which iT says Has contribUTed to soaRing 
wHolesale Prices in NEW york. NYSEg alSo bLamEs NyisO For outlining 
uNREaliStIc goals For New poweR suPplY, noT prOvIding accuRate pricE sIgNaLs 
To eNergy CUstomers, AnD foR nOt dOing eNOugh to Solve ImmeDiAtE ProBlems.  

YeT, BeYONd thE fInGer pOinTiNg, somE essENtiAl facts Can be estaBliSHed, oN 
wHiCh both NySEG and the NYIsO Apparently AgRee. accordING to data iNcluded 
in the NYISO report, BEtween 1995 aNd 2000, wHile sTateWide demanD in new 
YorK roSE by 2,700 MW, gEneratIng caPaCitY UNder cONTrAct In The state 
inCREasEd onlY bY 1,060 MW. NEw York hAs not brought a new plANt oNline since 
1996, wheN a 200-Mw plaNT OpEneD In bRooKlYN. It HAS been almost seveN years 
sincE a 1,000 mw uNit in OswegO, n.Y. mArKed the lAst planT to opEN upstatE.  

In additiOn, New York SuFferS FRom Severe tranSmission BottlenecKS. DefiCIeNt 
traNsmIssion SySteMs in cEntral nEw YOrk, arOund NeW YOrk CitY and
's Comprehensive Solution, '' critici zes t heNYI SO  for  
no t giving power cons umers "price certainty " inth e  tra n si tionfrom lo c al mon op ol ies  t o  a n ope n,competi tive marke t.
Analysis: Ne w  Y ork can no w o fficially be  ad ded to  t hel ist o f t roubl ed ene r gy 
ma rkets, as  m a rket p r ojectio n s  a nd f undamental struct u ra l  problems spel l out
a n  a l a rmi ngprognosisfo r the state a s  i t h ead s  into the sum mer season. 
Ho wever,  u nli k e Cali forni a, whi ch basicall y fa ces a pow er sup p ly prob l em that  
canbeimp rove d  o ve r t im e , N e wYor k  ar guably s uf fe rs fr om a m o r e se ver e an d 
pe rmanent set o f c ondi t ion s tha t can notbe  easi ly res olved .Like its West Coas t counter par t,  Ne wYorka lso su ffe rsfrom asupply/  de ma n d im balance and 
local  r e s is tance th at thw a rt sn ew gener at ion  dev e l opmen t. H o we ver, eve n if o r  wh en powe rsupply  c anbeincre a sedin New  York, t he co r e load centero f New 
York C i ty s ti l l su ffe rs from inh eren t  tra nsmi s si ond efici encie st ha t  continue 
to taketh eir ow n tol l on the stab ility of t h e market.

Va r io u s stakeholders  in t he New Yor k  markethavenow begu n to plac e blame on  
e ach  ot her i nadvance of wh a t  cou ld  shapeupto be a  ve rypro ble ma tic summe r. 
As n ot ed ,in  it s new report,NY SEG ,a s ubsid i ary of  Ener gy E as t( NYS E: EAS) ,  i s  esp ec ia llycri ti cal o f NY I SO,  whichit says h asc ontr ib ut ed to s oaring 
whole sa le pricesin  Ne w York . NYSEG al so blames NYISO for out l ining unr ealis ticgoals for  ne w powe r s u pply,not pr ovidi ng  ac c u ratep r ic e s ig nals 
to e n e rgy  cust om ers,  and fo r not doing enough tosolve immedia teprob l e ms . 
Y e t,be y ond t he finger point ing, somees s en tial facts can  b e estab lished,  on w hich bo th NYSEGand the N YI SO a p p are ntly agree . Accord ing to da t a inc l ud ed 
i n t he NYI SO  re port,  betwe e n 1 995 a nd 200 0,  while  stat ew ide dema nd in New 
York rose by  2,700  MW,gen erating c apa c ity  under co ntra ct in thesta te
incr eas e d onl y by 1, 060 MW. N ew Y o rk has no t  b rou g h ta new plant o n lin e sin ce1996,when  a 200-MW plant o p ened in Brookl yn.I t  ha s b e en a lm ost seven year s si n c e a 1,00 0MW unit inOswego,N. Y . mar ked th e last  plantt o  o p en ups tate . 

In addi tio n, New Yor ksu f fers f romse vere t ransmi s sion b ottlenecks. Defi cient trans m iss ion s ys tems in cent ral New Yo rk, aroundNew Yo rk C ity a nd
's Comprehensive_Solution,'' criticizes_the NYISO for 
not_giving power_consumers_"price certainty"_in_the transition from_local 
monopolies to_an open, competitive market._

Analysis: New York_can_now officially be added to the list of troubled energy 
markets, as market projections_and_fundamental structural_problems_spell_out 
an alarming prognosis for_the state as it heads_into the_summer season. 
However, unlike California, which basically faces_a_power supply problem_that 
can be improved over time, New York arguably_suffers from a more severe and_
permanent set of_conditions_that_cannot be easily resolved._Like its West 
Coast counterpart, New_York also suffers from a supply_/ demand imbalance and 
local resistance that_thwarts new generation development. However, even_if or 
when power supply_can be_increased in New York, the_core load center_of New_
York City still_suffers from inherent transmission deficiencies that_continue 
to take_their own toll on the stability_of_the market. 

Various_stakeholders_in_the New_York market have_now_begun to_place_blame on 
each other in advance_of_what could shape up to be a_very problematic summer. 
As_noted,_in its new report,_NYSEG, a subsidiary of Energy_East (NYSE: EAS), 
is especially critical_of NYISO,_which it_says has contributed to soaring 
wholesale prices in New York. NYSEG_also blames NYISO for outlining 
unrealistic_goals for new power_supply, not_providing_accurate price signals_
to_energy customers,_and for not doing enough to solve_immediate problems._ 

Yet, beyond the finger pointing,_some essential facts can_be_established, on 
which both NYSEG and_the NYISO apparently agree. According to_data included 
in the NYISO_report,_between_1995 and 2000, while statewide_demand in New 
York rose by_2,700 MW, generating_capacity under contract in the state 
increased_only_by 1,060 MW. New York has_not_brought a new plant online since_
1996,_when_a 200-MW plant opened in_Brooklyn. It has been almost seven_years 
since a 1,000 MW unit in Oswego, N.Y._marked the last_plant to open upstate. _

In_addition,_New York suffers from severe transmission bottlenecks. Deficient 
transmission systems_in central_New York, around_New York City and