STAGE 3 EMERGENCY EXTENSION [200100711]

The California Independent System Operator is extending the Stage 3 Emergency through 01/23/2001 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):

Insufficient Resources

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

Stage 3: Operating reserves are currently, or forecast to be, below 1-1/2%. The UDC will implement their electrical emergency plan and/or other load dropping to effect involuntary firm demand reductions, in addition to ALL Interruptible Service reductions AS DIRECTED BY THE CAISO.

This message is from Market Operations at the California ISO.

This notice supercedes notice 200100697

Notice issued at: 01/22/2001 16:46

The system conditions described in this communication are dynamic and subject to change. While the ISO has attempted to reflect the most current, accurate information available in preparing this notice, system conditions may change suddenly with little or no notice.

-- PHO (owennos@bigfoot.com), January 23, 2001

Answers

California Independent System Operator

FOR IMMEDIATE RELEASE Contact: Patrick Dorinson January 22, 2001 Director of Communications

1 (888) 516-NEWS

STAGE THRE EMERGENCY EXTENDED THROUGH MIDNIGHT TUESDAY

New Media Access Information Provided

(Folsom, CA) The California Independent System Operator (California ISO) plans to extend its longest-running Stage Three Electrical Emergency into a fourth day, Tuesday, January 23, 2001, until midnight.

While the total number of power plant units off line due to planned and unplanned outages is down to 7,600 megawatts, much of the generation that is off line is located in the Northern California—leaving that portion of the state vulnerable to the risk of rotating blackouts.

The California ISO does not anticipate initiating rotating blackouts tonight unless there is a major change in conditions. To consolidate requests for information from the media, the ISO will hold a telephone-only update tomorrow morning at 7:30 a.m. Formal news teleconference calls will be held this week only if conditions worsen and rotating blackouts are forecasted.

Due to the large number of media requests the ISO’s communications staff is attempting to accommodate,an on-call shift rotation for evening and weekend hours has been established. Please see our Newsroom site at www.caiso.com and page the Public Information Officer on-call. A public information officer will be available via phone to answer calls 7 a.m.-10 p.m. weekdays and 8 a.m. – 6 p.m. on weekends.

If system conditions warrant and the ISO is either in rotating blackouts or is forecasting rotating blackouts, public information staff will be available round-the-clock. -ISO-

-- PHO (owennos@bigfoot.com), January 23, 2001.

FOR IMMEDIATE RELEASE Contact: Patrick Dorinson January 22, 2001 (888) 516-NEWS

ELECTRICITY SUPPLIES IN NORTHERN CALIFORNIA ARE VERY TIGHT TOMORROW

Conservation from 5-11 a.m. and 4-9 p.m. Critical

(Folsom, CA) Tuesday, January 23rd has been declared a Power Watch Day by the California Independent System Operator (California ISO). A number of factors are converging to make customer outages likely Tuesday morning.

An important hydro resource, used all day today to mitigate the power flow on Path 15, will decrease available supply by 1,000 MW.

The 300 MW demand savings from PG&E’s interruptible customers will be unavailable tomorrow as their contracted hours expire tonight at 7:30 p.m.

Colder morning temperatures are expected to increase power demand. The state’s power grid has been under an uninterrupted Stage Three Electrical Emergency declaration since Saturday.

Tuesday’s peak demand on the ISO-controlled Grid is expected to reach 31,854 megawatts at approximately 6:00 p.m.

The California ISO urges Californians to watch their energy consumption, curtailing their use of electricity whenever possible.

Increased conservation efforts during the peak usage hours of 5:00-11:00 a.m. and 4:00-9:00 p.m. would be helpful.

- ISO -

-- PHO (owennos@bigfoot.com), January 23, 2001.

Latest yahoo article is saying they bought power again today from Powerex, a subsidiary of BC Hydro that offers "supply, flexibility, and commitment." I would imagine that comes at a pretty steep price, though.

-- Rachel Gibson (rgibson@hotmail.com), January 23, 2001.