RBowers@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

The NYISO will be posting invoices later today for the initial settlements
of July 2001 and the 1st settlement adjustments of July 2000, August 2000,
& March 2001.  Transmission Customers will observe the following
adjustments to their settlements.

Adjustments have been made to Transmission Customers' invoices to recover
the costs related adjustments made to customer settlements outside of the
billing process and to adjust the NYISO clearing account balance to zero
for each month invoiced.

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 July 2000
and August 2000 settlement adjustments resulted in credits to the market
totaling $7,700,605.23 and $32,146,310.55, respectively.  Customers where
paid their share of these adjustments based upon their respective ratio
shares of NYISO load for each month.  This adjustment provides for the
settlement of all accounts in the market in the month(s) the costs or
over-collections were realized and adjusts the NYISO clearing account
balance impact to zero for each month.

Adjustments have also been made to Transmission Customers' invoices to
recover the costs related adjustments made to customer settlements outside
of the billing process.  These adjustments totalled $964,548.42 for March
2001, $375,110.49 for July 2000 and $48,973.41 for August 2000. Customers
where allocated their share in these costs based upon their respective
ratio shares of NYISO load for each month.

Regards,
Randy A. Bowers
Manager - Customer Settlements