STAGE 3 EMERGENCY NOTICE [200100662]

Effective 01/17/2001 at 01:45 the California Independent System Operator has implemented Stage 3 of the Electrical Emergency Plan. The Plan has been implemented for the following reason(s):

insufficient resources, particularly NP15

Stage 3 is expected to be in effect from HE 2 through HE 24.

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

Stage 3: Operating reserves are expected to fall below 1-1/2%. The UDC will implement their electrical emergency plan and/or other load dropping to effect 0 MW of involuntary firm demand reductions (i.e., in addition to ALL Interruptible Service reductions) no later than 0 hours.

This message is from Market Operations at the California ISO.

Notice issued at: 01/17/2001 01:44 --------------------------------------------------------------------------------

-- PHO (owennos@bigfoot.com), January 17, 2001