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Review of Potential ISO Tariff Amendment - Memo

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Summary:

Memorandum to the ISO Operations Committee of the Board of Governors from Mike Dozier, Counsel and Charles A. King, P.E., Vice President of Market Development and Program Management, Dated June 7, 2006, Re: Potential Need for ISO Tariff Amendment or Other Approach to Address Recovery of Low Voltage Transmission Revenue Requirement by a Non-Load-Serving Participating TO. Presented at the ISO Operations Committee Meeting, June 14, 2006.

Extract:

EXECUTIVE SUMMARY On September 8, 2005, the ISO Governing Board (“Board”) unanimously approved the Trans Bay Cable Project (“Project”) as the preferred long-term transmission alternative to address reliability concerns regarding the San Francisco peninsula area. In conjunction with the application of Trans Bay Cable LLC (“TBC”) to become a Participating Transmission Owner (“Participating TO”), TBC and certain of the current Participating TOs have advised that they do not consider the ISO Tariff to be sufficiently clear regarding the manner of recovery of a Low Voltage Transmission Revenue Requirement (“LVTRR”) by a Participating TO like TBC that is not also a Load-serving entity. Management wishes to advise the Operations Committee of the Board that it intends to analyze and discuss this matter further with TBC and the current Participating TOs and to conduct an additional stakeholder process, based on which Management may seek Board approval of an amendment to the ISO Tariff at the next Board meeting.

Document Locations:

• Operations Committee Meeting 14-Jun-2006