STAGE 2 EMERGENCY NOTICE [200101193]

The California Independent System Operator is implementing Stage 2 of the Electrical Emergency Plan for the period 05/30/2001 14:00 through 05/30/2001 23:59.

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

High Temperatures and Insufficient Resources throughout the Region

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.

This message is from Market Operations at the California ISO.

Notice issued at: 05/30/2001 13:52

-- PHO (owennos@bigfoot.com), May 30, 2001

Answers

California Independent System Operator

FOR IMMEDIATE RELEASE Contact: Stephanie McCorkle May 30, 2001 Director of Communications

ELECTRICAL EMERGENCY STEPPED UP TO STAGE TWO NEED FOR ENERGY CONSERVATION IS CRITICAL

(Folsom, CA) The California Independent System Operator (California ISO) declared a Stage Two Electrical Emergency today, Wednesday, May 30, 2001, at 2:00 p.m. with operating reserves dipping below five percent. A number of factors are contributing to today’s emergency condition:

--With higher than expected temperatures and the corresponding use of air conditioning units, the demand for power is trending approximately 1,200 megawatts over the forecast.

--Net imports are running at 4,000 megawatts; 3,000 less than last week.

--A total of 9,800 megawatts worth of generation remains unavailable today with power plants off-line because of preventative repairs and plant malfunctions. Consumers are asked to step up conservation efforts as the California ISO’s job of balancing the supply and demand for power becomes more challenging this afternoon and into the evening peak hours.

Demand across the California ISO Control Area is expected to peak at 36,174 megawatts around 3:00 p.m. this afternoon.

Today’s Stage Two Emergency is in effect until midnight. With the Stage Two declaration, the California ISO is able to access emergency resources that will help maintain operating reserves.

-- PHO (owennos@bigfoot.com), May 30, 2001.