California Imbalance Charge Clarification ,
 Group,

Here is the most current information regarding charges from the CAISO, the FERC Ruling and the Price Cap.

1.  The current price cap is $91.87.  We should continue our practice of not selling over the cap, however we can (and should) buy over the cap if necessary for the system reliability of our service customers.

2.  The FERC order specifies a penalty of $100 per mw for underscheduling load (greater than 5% per load zone underscheduled).  Despite the CAISO's repeated protests (and the IOU's complete disregard of this order), WE can expect to be subject to this penalty.

3.  When a WARNING is in effect the CAISO will be making out-of -market calls.  These OOM calls will not show up in the expost or beep stack.  Therefore when power supplies become tight, the prices in the "expost" may actually drop.  We should continue our practice of NOT leaving uninstructed energy in the CAISO whenever possible.

4.  We should continue to participate in the CAISO congestion market.  The CAISO frequently has unexpected hourly path loadings, and congestion has occurred in the hour ahead market that was not present in the day ahead market.

5.  Remember to include CAISO export fees, Tie Meter Multipliers/import fees and grid management fees in your CAISO calculations of wheeling charges.



We will have a real-time meeting on Monday July 9th at 4:30 PM in Mt. Hood.  We will discuss other changes in the market at that time.  Please make plans to attend.
Thank you,
Bill
todd.bland@enron.com, craig.dean@enron.com, mark.guzman@enron.com, 