1(:65(/($6( 0HGLD+RWOLQH2"!1(:6 California Independent System Operator FOR IMMEDIATE RELEASE Contact: Patrick Dorinson July 20, 2000 Director of Communications

1 (888) 516-NEWS

CALIFORNIA ISO CALLS STAGE ONE ELECTRICAL EMERGENCY Tight Supply & Continuing Hot Weather in Southern California Deplete Reserves

(Folsom, Calif.) Hot weather in Southern California coupled with a lack of available generation in the region has prompted the California Independent System Operator (California ISO) to issue a statewide Stage One Electrical Emergency. The California ISO urges consumers to conserve electricity between the hours of 11 a.m. and 8 p.m. today to prevent more severe curtailment measures. Air conditioners continue to work overtime to cool homes and buildings in many areas in the state, particularly the southern regions. However, the major reason reserves are low is unavailable generation within Southern California and limited imports from the Southwest which is also experiencing extreme heat. Electricity from Northern California and the Pacific Northwest is available but transmission limitations will not allow the transport of all of the energy needed to the south end of the state. The California ISO is calling on all customers to voluntarily reduce their use of electricity today, especially during the peak afternoon hours. The Stage One Emergency is in effect until 8 p.m. tonight. Peak demand on the transmission system is expected to reach 42,600 megawatts by late afternoon. Stage One of the states Electrical Emergency Plan is initiated to advise the public of potential power shortages and to ask all customers to conserve electricity to ensure there will be enough power to meet future demand. The request for demand reduction is not intended to disrupt employment or curtail industrial production or commerce. However, if the conservation measures are insufficient in lowering the demand for power, load management programs that implement voluntary curtailments of power are probable. A Stage One Emergency takes effect when electricity-operating reserves fall below seven percent. A Stage Two is declared when reserves drop below five percent. At this level, large commercial customers that have signed up to voluntarily curtail power during high demand days will be asked to do so. If an operating reserve shortfall of less than one-and-a-half percent is unavoidable, Stage Three is initiated. Involuntary curtailments of service to customers including rolling blackouts are probable during this emergency declaration. The California ISOs Electrical Emergency Plan (EEP) is part of the states enhanced reliability standards enacted by landmark legislation Assembly Bill 1890 that led to the restructuring of Californias electricity industry. The California ISO is chartered by the state to manage the flow of electricity along the long-distance, high-voltage power lines that make up the bulk of Californias transmission system. The not-for-profit public-benefit corporation assumed the responsibility in March 1998 when California opened its energy markets to competition and the states investor-owned utilities turned their private transmission power lines over to the ISO to manage. The mission of the California ISO is to safeguard the reliable delivery of electricity, facilitate markets and ensure equal access to a vast 12,500 circuit miles of electron highway. Continuously updated information about the electricity supply within the California ISO control area and the current demand on the power grid is available on the web at www.caiso.com. Other helpful contacts: PG&E 415 973-5930 SCE 626 302-2255 SEMPRA ENERGY 619 696-4292 -ISO-S1- 072000

-- PHO (owennos@bigfoot.com), July 20, 2000

Answers

STAGE 1 EMERGENCY NOTICE [200000049]

Effective 07/20/2000 at 10:32 the California Independent System Operator has implemented Stage 1 of the Electrical Emergency Plan. The Plan has been implemented for the following reasons:

high temperatures and higher than expected loads.

Stage 1 is expected to be in effect from HE 11 through HE 20.

Participating transmission owners are to notify the Utility Distribution Companies within their operational areas.

Stage 1: Operating reserves are less than minimum. Advise the Utility Distribution Company of potential power shortages and request the UDC to advise end-use customers to reduce demand to minimum requirements without disruption of employment or curtailment of industrial production or commerce. Advise the UDC to prepare for imminent implementation of the interruptible load programs and/or electrical emergency plan.

This message is from Market Operations (916-351-2494) at the California ISO.

This notice supercedes notice 200000048

Notice issued at: 07/20/2000 10:55

-- PHO (owennos@bigfoot.com), July 20, 2000.