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

In its Order on Rehearing issued by FERC in Docket ER00-1969-002 on
November 8, 2001, the Commission rejected the NYISO's request for rehearing
to continue to bill for operating reserves based on the $2.52 bid cap in
effect for the period March 1 through March 27, 2000.  FERC also directed
the NYISO to re-calculate operating reserve charges for that period without
the bid cap in place.

On Friday, November 16, 2001, the NYISO filed a stay/extension with FERC in
order  to postpone any re-billing pending an appeal of the FERC decision in
the  Federal Appeals Court. In the event that FERC does not act in a timely
manner   on  the  NYISO's  request,  the  upcoming  March  2000  settlement
adjustment,  expected  to  be  issued  on  or  about December 7, 2001, will
reflect  this  re-calculation in accordance with the FERC Order.  The total
amount  of  this  adjustment  is  approximately  $27 million, which will be
allocated  to the appropriate suppliers and LSE's for the period of March 1
through March 27, 2000.

Regards,
Randy A. Bowers
Manager - Customer Settlements