Alan,

The Board has now adjourned to Executive Session (2:55 PM) with NO public discussion about Enron and our Scheduling Coordinator status (althought there was some brief reference to SCE not going into bankruptcy but there may be other participants they need to deal with - comment made during the budget discussion).  Below are some of the issues that may be of interest:

Information Policy.  They are trying to "Streamline" dissemination of information to Federal and State agencies.  They are going to be trying to change the tariff language to create a "Safe harbor" for entities like FERC and EOB (or whatever State agency has current oversight authority of the ISO)  What this safe harbor does is, assuming all parties have signed an appropriate confidentiality agreement with the ISO, when the EOB requests "confidential" information the ISO would deliver this information ASAP - there would be a 5 day delay before the government agency could release this "confidential" information to the public, during which time the market participant(s) involved could petition to stop public disclosure of this information (it seems to set backwards the process today, where they have to subpoena us for the data)  The other catch here is, if the EOB gets the data, and ANY other government agency asks the EOB for the information, assuming the confidentiality agreements have been signed, allow for the EOB to pass this data on to the requestor.  I believe the 5-day restriction on that entity then starts.  No matter what, this policy would seem problematic - to date I don't believe there is any state agency which has proved to be particularly trustworthy when it comes to keeping information confidential.

Congestion Management - Mr. Kristov has outlined several steps to a new congestion management mechanism.  There are 3 phases to this proposal, interim with the ISO imposing limits on scheduling by generators and bids (no more negative dec bids), Develop a mechanism for the Day Ahead and Hour Ahead process (which was not described - apparently it is still in the formative stages) and finally develop and implement protocols and software which can deal with congestion in Real-Time.  Mr. K points to the addition of new Gen to the ISO system which is causing much of this new congestion and the negative dec bids.  They will be filing this plan with the FERC soon.

FTR Auction - the presentation was just to show how FTRs are derived and to get a "rubber-stamp" approval to hold the auction in April.  Well, it didn't seem to work out that way.  Apparently Mr. Florio doesn't like the FTR market, there is concern that the ISO will not get the "right market value" for the FTRs and there was concern about congestion payments.  The Board voted to "move" this item and leave it open for further review prior to the next Board meeting, where they may vote to ask FERC to allow them to suspend or reduce the term of the auctioned FTRs.  We need to watch this for further developments.

CERS Relationship - Ziad Alaywan outlined the current and pending changes made as a result of FERC action on 11/20.  Transition:  As of 11/13 CERS has not been getting proprietary views of the BEEP stack.  As of 11/16 CERS is no longer being supplied with previews of the D/A and H/A scheduling results and by 11/30 at 2359, CERS - CAISO will no longer be providing any remaining D/A, H/A and R/T information and presumably by 12/6 CERS payments will be made and will halt all OOM calls to CERS and the ISO will resume only making OOM calls to all participants when necessary as per their Tariff.  You can expect a market notice to this effect sometime tomorrow.

That's it!

Dave 

 -----Original Message-----
From: 	Perrino, Dave  
Sent:	Thursday, November 29, 2001 12:04 PM
To:	Comnes, Alan; Mara, Susan
Cc:	Blair, Kit; Dasovich, Jeff; Hall, Steve
Subject:	RE: CAISO Board Meeting

Listening now.  I will keep an ear open for the ESP issue.

 -----Original Message-----
From: 	Comnes, Alan  
Sent:	Thursday, November 29, 2001 11:57 AM
To:	Mara, Susan; Perrino, Dave
Cc:	Blair, Kit; Dasovich, Jeff; Hall, Steve
Subject:	CAISO Board Meeting

Is going on as we speak.  Sue or Dave: can you listen in?

Board of Governors
Location: California ISO; 877-381-5998 Passcode: ISO