ISO Market Participants:
As announced in a market notice last Thursday, July 19, the ISO is
considering new processes for implementing the must-offer obligation that
would permit compliance with the FERC's Order and also take into
consideration the particular concerns of generating units with long start-up
times and operating costs that may not be fully recoverable during periods
of relatively low Energy prices.  
The ISO has posted on its web site a Draft Proposal that is intended to
provide Market Participants with an opportunity to comment upon and discuss
some modifications the ISO is considering to the procedures described in
last Thursday's market notice that addressed granting a "Temporary Waiver of
Must-Offer Obligation."   You can find the draft at
http://www.caiso.com/docs/2001/07/12/2001071217521028555.html
<http://www.caiso.com/docs/2001/07/12/2001071217521028555.html> .
Please return your written comments to me by 5:00 p.m. PDT on Friday, July
27. You may e-mail your comments to bwoertz@caiso.com
<mailto:bwoertz@caiso.com)> .  As we indicated last Thursday, the ISO plans
to hold a conference call to discuss this proposal and stakeholders'
comments.  We will send details on the call in the next day or two.  In
addition, we hope to issue a written response to comments we receive by
Friday prior to the conference call.

Byron B. Woertz, Jr.
Director, Client Relations
Phone:  (916) 608-7066
Pager:   (800) 481-7037