ISO Market Participants:
		Pursuant to the ISO's March 20, 2001 filing with the Federal
Energy Regulatory Commission (FERC) in Docket No. ER01-1579, the ISO hereby
gives notice that BEEP Split will be become effective on May 22, 2001.
		In Amendment No. 38, the ISO proposed modifications to
Tariff provisions relating to the separation of contingency reserve energy
from imbalance energy.  Amendment No. 38 gives participants an option to
indicate whether energy from Operating Reserve bids should be dispatched
only for Contingencies or System Emergencies due to energy limitations.
These bids would be separated out from the imbalance energy portion of the
BEEP stack and dispatched based on effectiveness only when there is a
Contingency or System Emergency.
		Pursuant to Amendment No. 38,  the BEEP Split becomes
effective ten days after the ISO posts a notice on the ISO Home Page that
the modified software necessary to implement the BEEP Split is ready for
use.  The ISO software modifications are now complete.  The ISO will
therefore implement this function on May 22, 2001, starting with the Day
Ahead Market for Trading Day May 23, 2001.  The ISO is providing this notice
to Market Participants via e-mail and will also post this notice on its Home
Page.
		If you have any questions, please contact Eddie Ledesma by
email at eledesma@caiso.com.
		Byron B. Woertz, Jr.
		Director, Client Relations
		(916) 608-7066
		(800) 481-7037 - Pager