STAGE 2 EMERGENCY NOTICE [200101272]

The California Independent System Operator is implementing Stage 2 of the Electrical Emergency Plan for the period 07/03/2001 11:40 through 07/03/2001 18:00.

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

Loss of Generation; Loss of Transmission; Extreme High Temperatures throughout the Region; 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.

This message is from Market Operations at the California ISO.

Notice issued at: 07/03/2001 11:39

-- PHO (owennos@bigfoot.com), July 03, 2001

Answers

12p 1p 2p 3p 4p 5p 6p 7p 8p 9p 10p 11p

Surplus/Shortfall 1837 2130 728 -215 -351 566 1915 3533 4478 4904 10188 13528

-- PHO (owennos@bigfoot.com), July 03, 2001.

Stage 2 Declared (KFWB) 7.03.01 12:00p

-- High temperatures are causing some power problems today. California's Independent System Operator is not predicting blackouts, but it has declared a Stage 2 Electrical Emergency earlier than forecast.

Power regulators expected a repeat of yesterday's conditions. High temperatures are taxing power utilities throughout the 11-state western grid area, Southern California Edison said. Imports are expected to be limited.

Power reserves dropped faster than expected though, and the state entered into power emergencies almost two hours earlier than forecast.

The state expects to have about 4.5 percent in power reserves. Interruptible customers may be asked to reduce power consumption by 1:30pm to 2pm -- about an hour earlier than originally forecast, Edison said citing ISO projections.

State power officials are forecasting peak loads to be near 40,500 megawatts today. Overnight, about 4,500 megawatts of power generation were lost, Edison said, making power reserves that much more narrow.

-- PHO (owennos@bigfoot.com), July 03, 2001.

Stage 2 Power Alert Issued

Rolling Blackouts Unlikely

SACRAMENTO, 3:30 p.m. EDT July 3, 2001 --

The state's electric grid operator issued power alerts for the second consecutive day Tuesday because of high temperatures and humidity across California.

Though energy reserves fell below 5 percent, the California Independent System Operator did not think rolling blackouts would be necessary.

"Everybody's fighting for the same megawatts out there because of the regional nature of the heat wave," said ISO spokeswoman Stephanie McCorkle.

The high temperatures across California and the Southwest triggered southern Nevada's first rolling blackouts Monday. In addition, California was experiencing unusually high humidity, helping drive up energy use.

ISO spokesman Gregg Fishman said conservation helped stave off blackouts Monday, and would likely be just as important Tuesday.

He said it was too early to tell whether uncertainty over two-week- old Federal Energy Regulatory Commission price caps in 11 Western states would discourage generators from selling power to California, as it did Monday.

Because of the way the caps are structured, Monday's power alerts did not change the baseline price, which remained at just under $92 per megawatt hour.

-- PHO (owennos@bigfoot.com), July 03, 2001.