SOX News

PJM Completes Seventh Consecutive SAS 70 Type 2 Audit Successfully

(Dec 13, 2007)-- PJM Interconnection successfully completed a SAS (Statement on Auditing Standards) 70 Type 2 audit for the seventh consecutive year.

SAS 70 is an auditing standard developed by the American Institute of Certified Public Accountants to enable an independent auditor to evaluate and issue an opinion about a service organization's controls. The Type 2 audit that was just completed includes an opinion from the auditor about the adequacy of design of PJM's controls and the level of compliance with those controls, as well as a description of the auditor's tests of operating effectiveness.

PricewaterhouseCoopers (PwC) conducted the audit, which covered the period from Oct. 1, 2006, to Sept. 30, 2007. PwC's unqualified opinion covered controls related to PJM's market settlements process as well as the information technology infrastructure that supports PJM markets.

"We're proud to receive an unqualified opinion for the seventh year in a row," said Suzanne Daugherty, vice president, chief financial officer and treasurer. "This comprehensive audit allows PJM's members and market participants to be confident in the adequacy of and compliance with PJM's processes and controls associated with our billing and settlement functions."

In keeping with governance rules, such as those in the Sarbanes-Oxley Act of 2002, a SAS 70 report is designed to provide an understanding of a service organization's internal controls to the auditors of the companies that use the organization's services.

PJM first began SAS 70 Type 2 audits in October 2000. It is the nation's first regional transmission organization or independent system operator to have passed the stringent Type 2 audit.

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