ISO Market Participants:
SC Settlements Contacts:

As you are aware, Pacific Gas & Electric Company ("PG&E") and the California
Power Exchange ("PX") have filed petitions for relief in the United States
Bankruptcy Court that are the subject of ongoing proceedings.  As we have
advised in prior Market Notices, each of these parties is substantially in
default of obligations -- pre-petition and/or post-petition -- incurred on
its behalf in one of more of the ISO markets.  The amounts owing have
resulted in a substantial reduction in monies paid out by the ISO to market
participants.  Accordingly, Market Participants likely have claims or other
legal rights they may wish to assert in either or both of the bankruptcy
proceedings.
Attached is a Market Notice that discusses the ISO's and Market
Participants' responsibilities to file such claims with the  bankruptcy
court.  Market Participants should consult their own legal COUNSEL as to
their respective rights and proofs of claims in the bankruptcy cases of the
PX and PG&E.
 <<PGE Bank -- FINAL Mkt Notice 0807.doc>>