ISO Market Participants:
		On April 26, 2001, the Federal Energy Regulatory Commission
(FERC) issued its "Order  Establishing Prospective Mitigation and Monitoring
Plan for the California Wholesale Electric Markets and Establishing an
Investigation of Public Utility Rates in Wholesale Western Energy Markets."
One of the fundamental principles of this Order is to:
			"Require sellers with PGAs as well as non-public
utility generators located in California, that make sales through the ISO's
markets or that use the ISO's interstate transmission grid (with the
exception of hydroelectric power), to offer all their available power in
real time during all hours."
		The Order also requires generators covered by the Order to
report certain generator performance data  to the ISO.
		On April 27th and 30th and on May 7th, the ISO issued Market
Notices on the Order's requirement for submission of generator performance
data.  Since that time, the ISO has received several questions regarding the
applicability of the Order to Qualifying Facilities (QFs).  By this
Supplemental Market Notice, the ISO clarifies  the Order's applicability to
QFs as follows:
		Applicability
		The Order sets forth a "must-offer" obligation on certain
generators, requiring these generators to  offer to the ISO, in real-time,
all available capacity not under contract.  At Section II.B. "Selling
Obligations," the Order provides that the  following categories of
generators are subject to the must-offer requirements:
*	Those generators with Participating Generator Agreements (PGAs);
*	All sellers into ISO markets, including non-public utility sellers,
that own or control generators located in California;
*	To the extent all sellers of energy that own or control generators
in California (including non-public utilities) are not selling "into ISO
markets", the Order includes all sellers that own or control generators in
California (including non-public utilities) whose power uses the
ISO-controlled interstate transmission facilities.
		The Order applies to all QFs in California. All QFs in
California use the interstate transmission facilities operated by the ISO,
whether supplying power under power purchase agreements (PPA) with the UDCs
or engaging in bilateral transactions.  Whether or not a QF must comply with
the reporting requirements outlined below depends on the specific
circumstances applicable to the facility.
		If a QF supplies all of its power pursuant to its power
purchase agreement (PPA) with the UDC, the QF does not have available
capacity subject to the "must-offer" condition and it does not have to
comply with reporting requirements outlined below.  In these circumstances,
the power generated under the contract is already scheduled with the ISO and
is serving load in California.
		If a QF has either: (1) a PPA with the UDC that has expired
(or who has received a regulatory or court order allowing the QF to sell the
contracted-for capacity to third parties) or (2) capacity in excess of the
amounts under contract to the UDCs, then the QF is subject to the
"must-offer" condition and it must comply with reporting requirements
outlined below.
		Reporting Requirements
		In addition to establishing a "must-offer" obligation, the
Order requires generators to provide certain operating data to the ISO to
enable it to verify the amount of available capacity from each generating
unit as defined above.  Each above-defined generating unit must submit to
the ISO data on:
1.	Pmax;
2.	Pmin;
3.	Unit ramp rate;
4.	Heat rates (for units using natural gas as their primary fuel);and
5.	Emission rates (for units using natural gas as their primary fuel).
		Please ensure that all of the above-mentioned data is
submitted to Jim Price at the ISO (jprrice@caiso.com
<mailto:jprrice@caiso.com> ) no later than 5:00 p.m. PST on Thursday, May
16.  Although the deadline for submitting heat and emission rates was May 1,
the ISO will accept those data through May 16, 2001.
		Thank you for your cooperation.

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