Energy Exchange Program Neutrality Adjustment
		Charge Type 1487
		SC Settlement Contacts:

		Background
		As you may know, the Energy Exchange Program began on trade
date 11/14/2000.  In this program the ISO obtained needed energy in the real
time market and, rather than paying for the energy as a purchase, later
returned the energy in another period.  This was not necessarily a
one-for-one exchange.  The incoming energy created a positive neutrality
adjustment and when the energy was returned, a negative neutrality
adjustment ensued.  Since the incoming and outgoing energy were usually
valued differently, there was a cost shift associated with the transaction
that was not cash neutral to the ISO. The ISO created Charge Type 1487 for
the allocation of the cost to SCs participating in the market during the
incoming schedules

		Notification
		The ISO has created Charge Type 1487 so that whenever an
Energy Exchange account is closed or reaches a zero balance, the incurred
costs will be calculated and allocated to the SC's based on their total
negative Uninstructed Energy over those intervals in which the incoming
schedules took place.  This new Charge Type will appear beginning on the
June 30, 2001 statements which will be published on August 23, 2001.  In
addition a few accounts reached a zero balance as early as December, 2000
and therefore allocations may or may not appear on your statement with the
rerun data.

		CT 1487 is a semi automated charge, meaning that the
collection of energy data is automated, but it will be a manual charge type
within the Manual Line Item Records and will not require a change to your
settlement system.  Note that this charge will not appear on every
statement, but only when an Energy Exchange account is closed or reaches a
zero balance.  


		If you have any questions, please contact your Client
Relations Account Manager.

				Client Relations Communication
				      CRCommunications@caiso.com