Please see attachement.  Thank you.

Jacqlynn Wu
5201 Great America Parkway, Suite 522
Santa Clara, CA 95054
408 517 2161



> -----Original Message-----
> From: Michael Heinrich
> Sent: Monday, February 26, 2001 3:59 PM
> To: Jacqlynn Wu
> Cc: John Stremel
> Subject: APX Solution to near-term California Congestion Management
>
> Jacqlynn:
> Please forward this to the list of participants that you have for the
> Adjustment Bid Market.  This needs to go out today.
>
> Please Cc:  Mike Heinrich, John Stremel, Ed, Jack Ellis, Robert Berry,
> Denice, John Y, Mark D, Jeff Crowe, John Dalessi, Mike Rucker, & Dave
> Perrino when you send this out.  thanks.............mike
> ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
>
>
> Dear Colleague:
>
> Thank you for your continued interest in the California Congestion
> Management Market and our solution to resolve congestion in the coming
> months.  And, a special thank you to those of you who attended the APX
> Adjustment Bid Meeting in Santa Clara on February 21, 2001 where we
> presented our technical solution for a zonal auction market for adjustment
> bids.  We appreciate the opportunity to describe our solution to the
> problem of arbitrary CAISO schedule cuts resulting from congestion that
> will become even more of an issue as the summer approaches.
>
> As requested during our meeting, attached is a description of congestion
> costs that can be avoided by your company and other California market
> participants if such a market is implemented by APX.  We are also
> including a request for your commitment to get this market started.  It is
> extremely important that we receive your commitment to do the development
> work necessary to get this market up and running.  Because of the limited
> time remaining between now and June, we are asking for your commitment
> before March 16, 2001.
>
> We believe that this market is essential to smooth resolution of
> congestion in the coming months and have provided several options for your
> commitment.  We also welcome other ideas that will provide your commitment
> to support this market.
>
> Thank you for taking time to evaluate this offer.  Please contact John
> Stremel (408-517-2120) or me if you have any questions regarding this
> proposal.  If this should be forwarded to someone else within your
> company, please send it along and let us know who the appropriate contact
> should be.
>  <<Congestion Management Offer_2-26-01.doc>>
> Mike
> Michael L. Heinrich
> Vice President
> Automated Power Exchange
> 5201 Great America Parkway
> Suite 522
> Santa Clara, CA  95054
> 408-517-2100
> Direct: 408-517-2159
> Mobile: 408-393-1092
> e-mail: mheinrich@apx.com
> www.apx.com
>
>

 - Congestion Management Offer_2-26-01.doc