The invoices for December 1999 settlement adjustments will be posted by
23:00 today, Friday, September 28, 2001.  The NYISO apologizes for any
inconvenience resulting in the delay in posting these invoices.

Transmission  Customers  will  observe adjustments to their settlements to:
(1)  recover  costs  related  to  adjustments  made  outside of the billing
process;  (2)  adjust regulation penalty charges to zero for suppliers; and
(3)  adjust  the  NYISO  clearing account balance to zero for December 1999
settlements.

With  regard  to the adjustments made outside of the billing process, these
adjustments  could not have been corrected by a billing code or determinant
data fix.  As a result, the mechanism of paying and funding the adjustments
is   done  outside  of  the  billing  process.   The  total  adjustment  of
$581,563.37  was  allocated  across 13,147,961 MWh.  Customers may validate
their  respective  adjustments  by  computing  their  ratio  shares  of the
$581,563.37  using  5,059,790  MWh  as  the denominator in their respective
ratios of their December 1999 load.  Customers will observe a difference in
the  denominators  used  in  the  ratio share allocation of this adjustment
versus  adjustment  #3.   This  is  due  to  the  fact  that  the costs for
adjustment  #1 are not allocated to those that received payment through the
adjustment, which would defeat the purpose of the adjustment.

Prior  to  October 2000, the NYISO recovered or refunded differences in the
revenue   received  from  Schedule  1  charges,  which  were  comprised  of
forecasted  uplift  & residual adjustments, and the costs actually incurred
by  adjusting  subsequent month's Schedule 1 rates accordingly.  In October
2000,  the NYISO implemented a change in the tariffed Schedule 1 provisions
that  allowed the recovery and refund of these costs as they were incurred.
In  order  to  allow  any  changes in uplift and residual adjustments to be
settled  through the settlement adjustment process, the code implemented in
October 2000 was used to report these costs to the market.  This results in
an  over-collection  which  is  being  returned  to  Customers  through  an
adjustment  to  their  monthly  balances.   This  billing treatment for the
December  1999  settlement  adjustments  resulted  in credits to the market
totaling  $5,219,402.09  allocated  across 13,191,237 MWh.  Customers where
allocated their portion of adjustment #3 above, based upon their respective
ratio shares of the 13,191,237 MWh of NYISO transmission service billed for
the month.

December  1999  settlement adjustment settlement dates have been changed to
address  the  delay  in  invoicing.  Payments due to the NYISO for December
1999  settlement  adjustments  are due to be received in the NYISO clearing
account  on  Monday, October 15, 2001.  Payments due to market participants
will  be  made on Friday, October 19, 2001.  Please refer to the attachment
below for banking instructions.

Regards,
Randy A. Bowers
Manager - Customer Settlements

(See attached file: December_1999_2nd_Settlement
Adjustment_Invoice_Banking_Instructions.PDF)
 - December_1999_2nd_Settlement Adjustment_Invoice_Banking_Instructions.PDF