STAGE 2 EMERGENCY NOTICE [200100909]

The California Independent System Operator is implementing Stage 2 of the Electrical Emergency Plan for the period .

The CAISO is continuing to request additional Supplemental Energy bids during this period. The Plan has been implemented for the following reason(s):

Insufficient Resources

Participating Transmission Owners are to notify the Utility Distribution Companies within their operational areas.

Stage 2: Operating reserves are currently, or forecast to be, below 5%. The UDC will implement interruptible service programs AS DIRECTED BY THE ISO and will take all additional actions necessary in preparation for immediate implementation of electrical emergency plans and await further orders from the ISO. Advise the UDC to prepare for possible implementation of involuntary firm demand reductions.

-- PHO (owennos@bigfoot.com), March 19, 2001

Answers

California Independent System Operator

FOR IMMEDIATE RELEASE

Contact: Patrick Dorinson March 19, 2001 Director of Communications

1 (888) 516-NEWS

INCREASED CONSERVATION EFFORTS IMPORTANT TODAY

Stage Two Electrical Emergency Declared This Morning

(Folsom, CA) The California Independent System Operator (California ISO) declared a Stage Two Electrical Emergency this morning, Monday, March 19, 2001 at 6:00 a.m. Operating reserves are low today due to limited imports and more than 11,500 megawatts of in-state generation which remains unavailable due to planned and forced maintenance.

Nearly 50% of the state’s Qualifying Facilities (QFs), small independent power generators, are not operating today because of financial concerns and an inability to purchase fuel to run the plants.

Megawatt-savings through conservation are extremely helpful to the California ISO’s efforts to manage the state’s electricity grid during these instances of short supply. Californians are encouraged to step-up their conservation efforts as much as possible today.

Today’s Stage Two Emergency is in effect until midnight. Demand across the California ISO Control Area is expected to peak at 29,348 megawatts around 6:00 p.m. this evening.

With the Stage Two declaration, the California ISO is able to access emergency resources that will help maintain operating reserves today. At this time, the ISO has not requested that the utilities’ voluntary interruptible customers, mainly commercial and industrial users, come off line.

-- PHO (owennos@bigfoot.com), March 19, 2001.