CALIFORNIA ISO MARKET NOTICE

Requested Client Action:  Mark Your Calendar

Date of Distribution:  August 15, 2006

Categories:  Legal and Regulatory

Subject:  Revised Tariff Amendment for LVTRR Cost Recovery for Non-Load-Serving PTOs
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Summary:  On August 3, the California ISO (CAISO) Governing Board approved the filing of an amendment to the CAISO Tariff to address Low Voltage Transmission Revenue Requirement (LVTRR) cost recovery of non-Load-serving Participating Transmission Owners (NLS PTOs).  Another stakeholder conference call is scheduled for Wednesday, August 16, 2:00 p.m. to 4:00 p.m. to finalize the proposed Tariff amendment.  ___________________________________________________

Main Text:  On August 3, the CAISO Governing Board approved the filing of an amendment to the CAISO Tariff to address LVTRR cost recovery of NLS PTOs.  The CAISO posted a “redlined” version of the proposed revisions to the CAISO Tariff on August 8 and issued a Market Notice that same day soliciting stakeholder review and comments.  Southern California Edison Company and Pacific Gas and Electric Company provided written comments, and the CAISO held a conference call on Monday, August 14 to discuss these and other stakeholder comments.

In response to comments received, the CAISO has made further changes to the proposed Tariff revisions.  A summary of these proposed changes is located on the CAISO website at: <http://www.caiso.com/1853/18538dbf43c10.pdf>.

A revised version of the proposed Tariff revisions is located at: <http://www.caiso.com/1853/18536fda4a900.pdf>.

Another stakeholder conference call is scheduled for Wednesday, August 16, 2006 from 2:00 p.m. to 4:00 p.m. Pacific Time to finalize the proposed Tariff amendment.  The target date for filing these amendments with FERC is Friday, August 18, 2006.

Conference Call Information:

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For More Information Contact:  Farrokh Rahimi (916) 608-7128, or send email to LVTRR@caiso.com <mailto:LVTRR@caiso.com>

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