ISO Market Participants:

 As you may know, the ISO Governing Board, at their March 15, 2001
meeting, approved in concept the Market Stabilization Plan (MSP) proposed by
the ISO. Although there was no formal motion, they directed Management to
proceed with the plan and prepare a filing to be submitted to FERC this
week. The proposed MSP and Lorenzo Kristov's presentation are posted on the
ISO's web site at
http://www.caiso.com/docs/2001/03/09/2001030913380120705.html.

 When we discussed this proposal at the conference call on March 9,
participants identified some implementation issues that would need to be
addressed in order to implement the MSP. In addition, many of you have
certainly identified other implementation issues since March 9.

 On Tuesday, March 27, the ISO will host a conference call from 11:00
a.m. to 2:00 p.m. PST to discuss MSP implementation issues. The call-in
information is as follows:

 Call In Number: (877) 381-6005

 Conference ID: 98843

 Conference Leader: Byron Woertz

 The purpose of the conference call is to provide Market Participants
with additional MSP implementation information and to answer questions that
Participants may have. In addition, the ISO will describe resource-specific
data that is needed from Participants for development of cost-based bids to
be used for resources bid into the market. Please note that we will not
discuss policy issues or whether the MSP should be implemented. We will
assume for this discussion that the ISO proceeds with implementing the plan
as presented to the Board and will address only those issues that would
affect our ability to implement the proposed MSP.

 If youwo have already identified specific implementation issues or
questions, please e-mail them to Scott Jercich (sjercich@caiso.com) with a
copy to me by 5:00 p.m. PST on Thursday, March 22 so that we can address
them on Tuesday. We will do our best to post initial questions and answers
by COB on Monday, March 26 so that you can review them before the call on
Tuesday.

 If you have questions, please contact me at the number below or
Scott at (916) 608-5987.

 Byron B. Woertz, Jr.

 Director, Client Relations

 (916) 608-7066