REVISED
> 	ISO Market Participants:
> 	On April 26, 2001, the Federal Energy Regulatory Commission (FERC)
> issued its "Order  Establishing Prospective Mitigation and Monitoring Plan
> for the California Wholesale Electric Markets and Establishing an
> Investigation of Public Utility Rates in Wholesale Western Energy
> Markets."  One of the fundamental principles of this Order is to:
> 		"Require sellers with PGAs as well as non-public utility
> generators located in California, that make sales through the ISO's
> markets or that use the ISO's interstate transmission grid (with the
> exception of hydroelectric power), to offer all their available power in
> real time during all hours."
> 	The Order also requires generators covered by the Order to report
> certain generator performance data  to the ISO.
> 	On April 27th and 30th and on May 7th, the ISO issued Market Notices
> on the Order's requirement for submission of generator performance data.
> Since that time, the ISO has received several questions regarding the
> applicability of the Order to Qualifying Facilities (QFs).  By this
> Supplemental Market Notice, the ISO clarifies  the Order's applicability
> to QFs as follows:
> 	Applicability
> 	The Order sets forth a "must-offer" obligation on certain
> generators, requiring these generators to  offer to the ISO, in real-time,
> all available capacity not under contract.  At Section II.B. "Selling
> Obligations," the Order provides that the  following categories of
> generators are subject to the must-offer requirements:
> *	Those generators with Participating Generator Agreements (PGAs);
> *	All sellers into ISO markets, including non-public utility sellers,
> that own or control generators located in California;
> *	To the extent all sellers of energy that own or control generators
> in California (including non-public utilities) are not selling "into ISO
> markets", the Order includes all sellers that own or control generators in
> California (including non-public utilities) whose power uses the
> ISO-controlled interstate transmission facilities.
> 	The Order applies to all QFs in California. All QFs in California
> use the interstate transmission facilities operated by the ISO, whether
> supplying power under power purchase agreements (PPA) with the UDCs or
> engaging in bilateral transactions.  Whether or not a QF must comply with
> the reporting requirements outlined below depends on the specific
> circumstances applicable to the facility.
> 	If a QF supplies all of its power pursuant to its power purchase
> agreement (PPA) with the UDC, the QF does not have available capacity
> subject to the "must-offer" condition and it does not have to comply with
> reporting requirements outlined below.  In these circumstances, the power
> generated under the contract is already scheduled with the ISO and is
> serving load in California.
> 	If a QF has either: (1) a PPA with the UDC that has expired (or who
> has received a regulatory or court order allowing the QF to sell the
> contracted-for capacity to third parties) or (2) capacity in excess of the
> amounts under contract to the UDCs, then the QF is subject to the
> "must-offer" condition and it must comply with reporting requirements
> outlined below.
> 	Reporting Requirements
> 	In addition to establishing a "must-offer" obligation, the Order
> requires generators to provide certain operating data to the ISO to enable
> it to verify the amount of available capacity from each generating unit as
> defined above.  Each above-defined generating unit must submit to the ISO
> data on:
> 		1.	Pmax;
> 		2.	Pmin;
> 		3.	Unit ramp rate;
> 		4.	Heat rates (for units using natural gas as their
> primary fuel);and
> 		5.	Emission rates (for units using natural gas as their
> primary fuel).
> 	Please ensure that all of the above-mentioned data is submitted to
> Jim Price at the ISO (jprice@caiso.com) no later than 5:00 p.m. PST on
> Wednesday, May 16.  Although the deadline for submitting heat and emission
> rates was May 1, the ISO will accept those data through May 16, 2001.
> 	Thank you for your cooperation.
>
> 	Byron B. Woertz, Jr.
> 	Director, Client Relations
> 	(916) 608-7066
> 	(800) 481-7037 - Pager