The invoices for August 2001 settlements were posted by 10:42 AM today,
Saturday, September 8, 2001.  The NYISO apologizes for any inconvenience
resulting in posting these invoices a day after they were scheduled.  The
Customer Settlements group makes every effort to render accurate invoices
on a timely basis.  Although issued a day after their scheduled posting,
the invoices are still being issued within the 5-business days.  {I'd
forgotten about Labor Day when I set up the schedule.}

Transmission Customers will observe adjustments for an error on in May 2000
Settlement  Adjustment  invoices  that  were  issued  in  July.   The total
adjustment  amounted to $2,081,568.11 and was allocated across 2,261,753.08
MWh.   Customers  may  validate  their  respective adjustments by computing
their  ratio  shares  of  the  $2,081,568.11  using  2,261,753  MWh  as the
denominator  in  their respective ratios of their May 2000 load. The reason
the  denominator of the ratio share appears small is because the pay out of
this  adjustment is to the Transmission Owners.  In order not to assess the
TO's  a  proportionate  share  of the $2,081,568.11, which would defeat the
purpose  of  the  adjustment, their withdrawals have been excluded from the
ratio share.  Transmission Owners should observe a credit on their invoices
based upon their respective megawatt-mile coefficients for the period.

With  regard  to  the  November 1999 & December 1999 settlement adjustments
that  were  scheduled  to  be issued on the 7th, the NYISO intends to issue
those  invoices  next  week.  The issuance dates will ensure that customers
will have at least 5 business days to review the invoices prior to payments
being due to the NYISO.  If necessary, the NYISO will reschedule settlement
dates  for these months should our reconciliations take longer to complete;
however, we do not anticipate this at this time.

In  addition,  I'd  like to take this opportunity to clarify a point that I
made  in  a  TIE  posting  regarding  the  rebilling  of  the  August  25th
settlements.   The  initial  billing runs for August 25th were done without
considering  ConEd's  sub-zonal  load.   As a result, it appeared as though
there  was no load in the ConEd sub-zones on the 25th and all DAM purchases
and  bilateral transactions in those sub-zones were sold back to the market
in  real  time  causing  the  Schedule  1 residual adjustment to be grossly
inflated.   The reason this occurred was due to what appears to have been a
frame  relay  problem  between the NYISO & ConEd resulting in the NYISO not
receiving a file from ConEd.  By no means was my email notification of this
event  to  imply that ConEd was not complying with the daily load provision
process.  This was merely a hardware/communications issue.

Regards,
Randy A. Bowers
Manager - Customer Settlements

(See attached file:
August_2001_Settlement_Invoices_Banking_Instructions.PDF)


 - August_2001_Settlement_Invoices_Banking_Instructions.PDF