We have a call set up with the PwC auditors for Friday September 7 at 10:30 a.m.  The call-in number is (877) 661-1222 and the passcode number is 921065.  

Richard, Mark, and Sue:  Any suggestions for increasing the likelihood that the auditors will pursue our questions?  I was thinking that we could get the names of the auditors and send them a confirming letter thanking them for meeting with us, reiterating our questions and concerns, and stating that we look forward to and relying on their review of these critical matters because so much money is at stake.  PwC will be less likely to blow us off with a letter like that in the file---if the ISO blows up, that letter would be Exhibit A in a negligent misrepresentation case against PwC.  

Alan, 

Would you like to meet on Thursday afternoon for a bit to outline and frame our questions?

Steve

-----Original Message-----
From: Shapiro, Richard 
Sent: Wednesday, September 05, 2001 1:02 PM
To: Comnes, Alan; Hall, Steve C. (Legal); Mara, Susan; Palmer, Mark A.
(PR)
Subject: RE: PwC Operational Study: A golden opportunity to expose ISO
manipulation of real-time markets and scheduling


Go for it!

-----Original Message-----
From: Comnes, Alan 
Sent: Wednesday, September 05, 2001 2:53 PM
To: Shapiro, Richard; Hall, Steve C. (Legal); Mara, Susan; Palmer, Mark
A. (PR)
Subject: RE: PwC Operational Study: A golden opportunity to expose ISO
manipulation of real-time markets and scheduling
Importance: High


Rick,

I talked with Sue and Steve and also talked to Karen Shea with Dynegy (formerly with PG&E).

PWC has showed little spine in the past.  The tariffs are usually vague enough for PWC to find to-the-letter compliance  where clear violations in spirit exist.  Also, issues raised over 2 years ago have yet to be resolved.

However, Sue and I agree that there would be no harm to lodge some issues with PWC.  I think the issues we should raise are:
CAISO has still not brought forth a creditworthy buyer (Terry Winter's letter said as much)
CAISO appears to be taking OOM calls in violation of its tariff as a way to launder DWR power.

I told Steve to go ahead and schedule a call with PWC and I offered to be on it with him.  Rick or Mark: please let me know if you have a problem pursuing this.

Finally, FYI, Dynegy expects to lodge issues with PWC.

Alan 

-----Original Message-----
From: Shapiro, Richard 
Sent: Tuesday, September 04, 2001 7:23 PM
To: Hall, Steve C. (Legal); Mara, Susan; Comnes, Alan; Palmer, Mark A.
(PR)
Subject: RE: PwC Operational Study: A golden opportunity to expose ISO
manipulation of real-time markets and scheduling


By this e-mail, I'm soliciting input from Sue and Alan on whether we should engage with PWC( I know  Sue thinks PWC is captive to ISO).Thanks.


-----Original Message-----
From:	Hall, Steve C. (Legal)
Sent:	Tue 9/4/2001 5:31 PM
To:	Mara, Susan; Comnes, Alan; Palmer, Mark A. (PR); Shapiro, Richard
Cc:	
Subject:	PwC Operational Study:  A golden opportunity to expose ISO manipulation of real-time markets and scheduling

PriceWaterhouse is seeking confidential input from ISO market participants about the ISO's hour-ahead, day-ahead and real-time operating practices performed by ISO personnel in its Folsom and Alhambra control rooms.  This would be a great opportunity to bring up dubious schedule adjustments, CDWR sweetheart deals (OOM purchases), CDWR access to ISO confidential data, suspected manipulation of ex post prices, and ISO board independence.

However, we need to act fast.  Meetings with PwC are scheduled for tomorrow and Friday.  If there is interest in presenting some questions/data to PwC, I would be available to help pull together information and formulate questions on short notice.

Steve

-----Original Message-----
From: CRCommunications [mailto:CRCommunications@caiso.com]
Sent: Tuesday, September 04, 2001 2:32 PM
To: ISO Market Participants
Subject: CAISO Notice - PwC Operational Study


The ISO is re-sending this message, previously sent on August 29, due to
technical difficulties.  If you received the original message, please
disregard this one.
ISO Market Participants:
In past years, the California Independent System Operator (ISO) has
evaluated its operating practices through an independent review.
PricewaterhouseCoopers (PwC) plans to commence the ISO's 2001 Operational
Study during September 2001. As in past years, the Operational Study will be
focused on hour-ahead, day-ahead and real-time operating practices performed
by ISO personnel in its Folsom and Alhambra control rooms. 
PwC is seeking input from ISO market participants prior to conducting its
Operational Study. Consistent with prior studies, the scope of the 2001
Operational Study will not include active settlement disputes which are
being addressed in other forums. 
If you would like to meet with PwC (via conference call) to discuss the
scope of this Operational Study, please call Ms. Ericia Berti at (916)
351-4453 or e-mail her at eberti@caiso.com <mailto:eberti@caiso.com> .  You
can schedule a meeting for Wednesday, September 5th or  Friday, September
7th.  Market participants will be given the opportunity to have a member of
ISO Operations management, Vicken Kasarjian, present during all or a portion
of their meetings if they so desire.  Information conveyed by market
participants to PwC during these meetings will be treated in the strictest
confidence at the request of the market participants.
When scheduling a meeting, please advise Ms. Berti whether you prefer to:
1.	Meet with PwC only;
2.	Meet with PwC and Vicken Kasarjian; or
3.	Meet first with PwC only, followed by a session including Vicken
Kasarjian to cover certain matters addressed in the first meeting that you
wish to communicate directly to ISO management.
If you have any questions regarding the PwC Operational Study or the
interviews, please contact Ericia Berti.
Client Relations Communications
CRCommunications@caiso.com <mailto:CRCommunications@caiso.com> 


Byron B. Woertz, Jr.
Director, Client Relations
Phone:  (916) 608-7066
Pager:   (800) 481-7037