STAGE 2 EMERGENCY NOTICE [200000498]

Effective 12/21/2000 at 07:30 the California Independent System Operator is implementing Stage 2 of the Electrical Emergency Plan. The Plan has been implemented for the following reason(s):

Deficient operating resources in the NP15 zone.

Stage 2 is expected to be in effect from Hour Ending 8 through Hour Ending 24.

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

Stage 2: Operating reserves are expected to fall 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.

This message is from Market Operations at the California ISO.

Notice issued at: 12/21/2000 07:30

-- PHO (owennos@bigfoot.com), December 21, 2000

Answers

California Independent System Operator FOR IMMEDIATE RELEASE Contact:: Patrick Dorinson December 21, 2000 Director of Communications 1 (888) 516-NEWS

PATH 15 TRANSMISSION CONSTRAINTS LEAD TO CONCURRENT STAGE ONE AND TWO EMERGENCIES

No Power Interruptions Forecasted

(Folsom, CA) The California Independent System Operator (California ISO) declared concurrent Stage One and Two Electrical Emergencies today, Thursday, December 21, 2000— for Northern California only. The emergency status is in effect from 7:30 a.m. until midnight and conservation is encouraged. All this week, power flowing from Southern California to Northern California has hit a bottleneck at the transmission link known as Path 15. Because imports from the Northwestern U.S. have slowed to a trickle, Northern California’s need for electricity has been placing big demands on power plants in the Southland. Because only so much electricity can be transported due to the limited transmission capacity, operating reserves are predicted to dip to below five percent in Northern California. Today’s forecasted consumption of electricity is expected to peak around 6:00 p.m. at an estimated 33,695 megawatts. At this time, the California ISO expects to maintain the reliability of the power grid without activating voluntary load management programs. The ISO urges interruptible customers to wait to shed their contracted electrical load until specified to do so by their local utility. Interruptible customers, mainly commercial and industrial users, receive a reduced rate in exchange for a commitment to come off line when asked to do so for reliability purposes.

-- PHO (owennos@bigfoot.com), December 21, 2000.

The power grid margin should be broadcast continuously in Californial and other affected areas. This information should be continuously (or frequently) broadcast on T.V., radio, Internet, and available by phone. I have emailed SDG&E to advocate this, but nothing has been done. Most people and companies would conserve as margin drops, if we KNOW about it in real time. This would help avert forced rationing and/or grid overload collapse.

-- Robert Riggs (rxr.999@worldnet.att.net), December 21, 2000.