Market Participants:

The ISO provides this update regarding the Summer 2001 Demand Relief Program
and the Discretionary Load Curtailment Program.  The ISO intends to issue
new solicitations for both programs in the next 1 1/2 weeks.

Two additional RFBs for the Demand Relief Program, one for Loads only and
one for Loads with back-up generators, are scheduled for issuance early next
week with bids due May 1.  They will be posted to our website and noticed by
email.  Based on ISO Governing Board approval on May 10, these Loads will
begin participation in the Demand Relief Program on either June 1 or July 1,
as feasible.

The ISO Governing Board recently approved the design structure of the ISO
Discretionary Load Curtailment Program.  This program will be operable
year-round.  The ISO plans to issue the formal RFP in the next 1 1/2 weeks.
Proposals will be accepted from aggregators on an ongoing basis.

Additional details (subject to some change) can be found in Attachment A of
the ISO Management Memo to the Governing Board dated March 7, 2001 and
titled, Summer 2001 Preparedness Update and Demand Response Programs.  (Note
that pricing for the Discretionary Load Curtailment Program could be
modified in the final design; the ISO expects to initiate the program in the
$250-$500/MWh price range.)

Don Fuller
Director, Client Relations