**IMPORTANT**

All,

I didn't catch the impact of this when I first saw it last week, but NYISO
is making a change that should cause real time prices to increase (relative
to historical prices) in cases where bid load is less than real time actual
load.  They will be committing GTs in the reliability pass of SCUC at an
incremental cost of zero (instead of committing a steam unit), which
increases the likelihood that GTs will run in real time under these
conditions, increasing real time prices.  The change goes into effect today
or tomorrow.  See below.

Scott



===========================================================================
pmorrison@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

Dear Market Participants,

Please note the changes below are planned for the indicated
OASIS/MIS/CSS systems on the dates shown.  Updates and revisions
will follow as needed to keep you informed.
Please direct any questions or comments back to me.

Thank you,
Pete Morrison
Customer Relations
518-356-6060

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Scheduled for 11/29/00 & 11/30/00
Change type - Enhancement
Description:
Billing System changes will be deployed to implement 10 minute,
non-synchronous and 10 minute, spinning lost opportunity payments.

Also, billing software deployment to allow PURPA Class 2 units to
participate in the LBMP market and not have their transactions
adjusted after the fact.

MIS change will enable web posting (via Operational Announcement)
in the event of a reserve pick-up.

SCUC and BME software modifications will include the following:
- SCUC modeling of Gas Turbines as zero cost capacity resources in
  the Forecast Load Commitment Passes of SCUC.
- SCUC and BME pro-rata scheduling of external transactions with
  equal bids in the event multiple transactions are marginal.
- SCUC and BME non-distributed scheduling of reserve suppliers in
  the event multiple suppliers are marginal.

BHAN-4R5HUA,MDSO-4R6L25,MDSO-4R6M86,MGUE-4QTRUX,MGUE-4QWJ9N
##################################################################


 - Scott Englander (E-mail).vcf