I would personally like to thank each of you for your support in exploring
the possibility of an adjustment bid market in CA.

The active participation in our February 21st Conference and the innovative
ideas and suggestions were very helpful.  They clarified a viable approach
for action we proposed to the CAISO.

APX proposed the adjustment bid market to the CAISO board meeting on
February 28th.  The implications of not moving forward were identified and
your support was extremely helpful in creating momentum for the CAISO to
take action.

In the CAISO board meeting on March 15th, the CAISO staff proposed a
comprehensive proposal for moving forward.  That proposal created a day
ahead and hour ahead energy market as well as simultaneously resolving
transmission congestion and potentially ancillary service requirements
through a new commitment and dispatch approach.  Although the software
changes and system changes are significant, the CAISO staff feels confident
that this can be accomplished by summer.

With the comprehensive plan, there will be no need for using the existing
CONG software at the CAISO to alleviate congestion among SCs with adjustment
bids.

APX stands ready to cooperate in finding solutions for this summer.  We will
focus on the development of forward markets for power.  We have the
capability to provide forward markets for transmission if there is
sufficient interest.  If you have interest in such markets or other ideas
where APX could provide products of value to you and the market please
contact me.

Thank you for your support.

John Stremel
Vice President
Automated Power Exchange, Inc.
5201 Great America Parkway, Suite 522
Santa Clara, CA
408.517.2120
jstremel@apx.com