---------------------- Forwarded by Lysa Akin/PDX/ECT on 01/26/2001 03:01 PM 
---------------------------


Mary Hain
01/26/2001 02:53 PM
To: Richard Sanders, James D Steffes/NA/Enron@Enron
cc: Lysa Akin/PDX/ECT@ECT 
Subject: CAISO Notice: SCE's Letter Notification and ISO Response

Lysa please forward this to everyone on the California crisis contact list.
---------------------- Forwarded by Mary Hain/HOU/ECT on 01/26/2001 03:02 PM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  "Fuller, Don" <DFuller@caiso.com>@caiso.com>                           
01/26/2001 02:52 PM
	

Sent by: "Happ, Susan" <SHapp@caiso.com>
To: ISO Market Participants 
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTI
CIPANTS@caiso.com>
cc:  
Subject: CAISO Notice:  SCE's  Letter Notification and ISO Response


Market notice:

On January 24, 2001, the CEO of the California ISO received by fax a letter
from John R. Fielder, Senior Vice President of Regulatory and Policy Affairs
at Southern California Edison (SCE).  Mr. Fielder stated that SCE was
providing notice pursuant to Sections 15.1 and 15.2 of the ISO Tariff "that
SCE will not be performing all of its obligations under the ISO Tariff
because it will not be paying every invoice due to Uncontrollable Forces, as
defined in the ISO Tariff."  Mr. Fielder stated that the Uncontrollable
Forces were "regulations and restrictions imposed by governmental
authorities, including without limitation, the CPUC's order of January 4,
2001, that failed to authroize SCE to obtain, and restricted SCE from
obtaining sufficient funds to enable SCE to meet its payment obligations."
Mr. Fielder further stated that, "[b]ecause SCE's action is due to
Uncontrollable Forces, the ISO should not attempt to exercise any remedies
against SCE for non-performance and SCE will hold the ISO responsible for
the consequences of the ISO exercising any such remedies."  Finally, Mr.
Fielder stated that SCE was using its best efforts to mitigate the effects
of the regulations and restrictions and would continue to do so.  The CEO of
the California ISO has written to Mr. Fielder stating that it is studying
the position taken in Mr. Fielder's letter and that for the moment it
neither accepts nor rejects the position.  The purpose of this market notice
is to fully inform Market Participants who may have claims directly against
SCE based on SCE's failure to pay ISO invoices.