See note below. This is a mess.  I'm trying to get what the prices should be
for the error referenced below.  That way you can take the correct price,
figure out what your A/S obligation and payment should be, and pay that
accordingly.  This suggestion is not recommended by the ISO as the ISO
expects the market to pay their invoices in whole, however, when we only pay
two cents on the dollar, this is an alternative that you may want to
consider.

Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager:  916/814-7352
alpha page:  9169812000.1151268@pagenet.net
e-mail:  <mailto:kalmeida@caiso.com>



> -----Original Message-----
> From:	Almeida, Keoni
> Sent:	Wednesday, June 13, 2001 8:26 AM
> To:	Klussmann, Rhonda; ISO Client Relations; ISO Settlements; Market
> Quality Group
> Subject:	RE: April Preliminary A/S Offset for High Prices
>
> My apologies for asking this again.  Can you please provide to us with
> what hours are impacted and what the prices should be?  Thanks
>
> Keoni Almeida
> California Independent System Operator
> phone: 916/608-7053
> pager:  916/814-7352
> alpha page:  9169812000.1151268@pagenet.net
> e-mail:  <mailto:kalmeida@caiso.com>
>
>
>
> -----Original Message-----
> From:	Klussmann, Rhonda
> Sent:	Tuesday, June 12, 2001 7:25 PM
> To:	ISO Client Relations; ISO Settlements; Market Quality Group
> Subject:	April Preliminary A/S Offset for High Prices
>
>
> On Trade Date 4/14/01 unintentional high prices ranging from $5400 to $470
> per MW were generated for Spin, CT 111, HE 11,12,15,17,19 and Non-Spin, CT
> 112, HE 1,2,7,12.  This also caused irrational Rational Buyer Neutrality
> charges, CT 1011.
>
> Of course, the prices will be corrected on the Final Statement, but market
> defaults have raised concerns about over-charging on the Preliminary
> Invoice, the inability to collect for payments on the Final Invoice, and
> the interest penalty that follows.
>
> Since the dollar impact is significant (around $40M) an offset will be
> entered in time for the April 2001 Preliminary Invoice.  The manual delta
> payments(credits) when netted against the original charges will equate to
> a more reasonable charge.  CT 111 & 112 adjustments are based upon net
> obligation and a delta price (bad price minus what the wt. ave. price
> should have been).  CT 1011 adjustment were "backed into" and will be
> impossible to validate due to changes in CT 111 & 112 amounts.
>
> The A/S adjustment will be entered on Preliminary Statement 4/30/01 and
> reversed on the Final Statement 4/30/01.
>
> Please notify your clients appropriately.
>
> Rhonda Klussmann
> Sr. MQ Analyst
>
>