To Market Participants:

At the Market Issues Forum yesterday, Jeanne Sole led the presentation on
Distributed Generation, presenting the initial ISO thinking based on recent
proceedings and feedback from participants.   In the context of the CPUC
proceeding on distributed generation, the ISO has identified ISO
requirements that should be clarified or revised to accommodate distributed
generation.    The ISO has scheduled a meeting on August 31 , in Folsom,
from 10:30 AM -3 PM  to discuss its initial ideas on
clarifications/revisions. The ISO invites entities interested in discussing
these ideas and other ideas related to distributed generation to attend.  It
is our schedule now to take this issue to the Governing Board in October.

The ISO will distribute information on its initial ideas along with more
information on the location of the meeting by Friday August 18.



Don Fuller

Director, Client Relations