ISO Market Participants:
  Cash clearing for preliminary invoices for December 2001 was
to take place on March 5, 2001.  The ISO received market related funds
totaling $46,369,847.29 from total market receivables of $1,503,186,210.21.
The ISO intends to distribute these funds on March 7, 2001.  The ISO delayed
this distribution to allow us to complete the complex calculations necessary
to ensure that all funds are distributed equitably and in accordance with
the ISO Tariff.
  In addition, PG&E transferred $177,000,000 ($171,116,114.43
net of GMC obligation) to the ISO on March 2, 2001.  Such funds were
intended by PG&E to satisfy PG&E obligations to the ISO through the
California Power Exchange.   The California Power Exchange is the subject of
a preliminary injunction (Case No. 01-00901CM of the US District Court,
Central District of California,  "Enron Power Marketing and Enron Corp. vs.
California Power Exchange") which provides that "CalPX shall not be required
to make payments to creditors of CalPX resulting from its clearinghouse
function."    The ISO is discussing with its counsel the appropriate course
of action to take in light of this injunction, and has placed such funds in
a segregated interest bearing account until such a determination has been
made.
  Phil Leiber
  Dir. Financial Planning & Treasurer
  California ISO
  916 351-2168
  916-351-2259 (fax)