MARKET NOTICE
February 4, 2002

The California Independent System Operator (ISO) is announcing the
Aggregated Distributed Generation Pilot Project (ADGPP).  The participation
of Generating Units in the ISO's markets is currently limited to units with
a rated capacity of 1 MW or greater.  The ADGPP is intended to demonstrate
the feasibility of allowing physically separated small units (less than 1
MW) to be aggregated as a means of reducing barriers to entry into the ISO
markets.  ADGPP is currently intended to operate as follows: 

*	Generation units with a rated capacity of less than 1 MW may
participate
*	Generators will be aggregated through an Aggregated Distributed Unit
(ADU), which will have an aggregated or total rated capacity greater than or
equal to 1 MW but no more than 10 MW
*	The total capacity for all units participating in this Pilot Project
is limited to 50 MWs
*	ADUs must contain generators that are in the same Demand Zone which
are not on opposite sides of constrained transmission elements
*	Each ADU must be scheduled in the ISO Energy or Supplemental Energy
Market
*	Near real-time operational data will be required from ADU
*	Prospective participants can propose unique methods and processes
for delivering the near real time operational data
*	Generators will be considered SC Metered Entities, therefore they
must have Local Regulatory Authority approved interval metering
*	Settlement will occur through submitting aggregated Settlement
Quality Meter Data (SQMD) by the SC representing the ADU

As noted above, units participating in the ADGPP will be allowed to
participate in the ISO Energy and Supplemental Energy Markets only and will
not be allowed to participate in the ISO's Ancillary Services markets.  The
increased participation in the ISO Energy and Supplemental Energy markets
will provide greater market depth and will increase competition by expanding
the pool of generation available within the ISO Control Area.  The ADGPP is
intended only to accommodate units less than 1 MW and is not intended to
facilitate "portfolio bidding" from Generating Units 1 MW or larger.

The ADGPP is also intended to improve the ISO's visibility of generating
resources within the ISO Control Area by demonstrating the functionality of
various basic-level operational data reporting processes which may be
proposed by the prospective participants.  These operational data reporting
processes should demonstrate the capability of delivering operational data
for the ADU to the ISO near real time and be economical from the small
Generator perspective.  The uniqueness of the operational data reporting
processes proposed will be one factor in selection of participants in the
program.  Thus, the project will also ensure that the participation of these
resources in the ISO's markets will occur without compromising system
reliability.

The ISO will be hosting a Workshop on Friday, March 8th to discuss the Pilot
Project details.  Please contact Sue Happ (916) 608-7059 for reservations.
Participation in the workshop will only be allowed if reservations are made
in advance. 

Workshop Objectives:  

Members of the ISO staff from Metering, EMS, IT Security, Operations and
Market Services will be available to provide a general description of the
Pilot Program and to answer any questions from prospective participants.  An
agenda and directions to the workshop will be provided on March 1st.   

Workshop Target Audience:  

Aggregators, Scheduling Coordinators and Prospective Generators.  

The ISO will allocate two hours on the agenda to interested Aggregators or
Scheduling Coordinators.  If you are interested in providing a presentation,
please Contact Ali Miremadi at (916) 608-7061 by February 22nd
.    
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