Market Rules and Market Design

April 4, 2008

Requested Client Action

Information Only

DEC Bidding Rule and COG Pricing Proposals

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Summary

The CAISO will post a Revised Straw Proposal on the DEC Bidding Rule and a Draft Final Proposal on the COG Pricing issues on April 14, 2008.

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Main Text

The California Independent System Operator (CAISO) will post a Revised Straw Proposal on the DEC Bidding Rule issue and a Draft Final Proposal on the Constrained Output Generating (COG) Pricing issue on Friday, April 14, 2008. These issues are both Market Release 1A items and are targeted for implementation within twelve months of MRTU Go Live. The CAISO plans to present these items to its Board of Governors at the July 9-10, 2008 Board meeting.

The change in the presentation date to the Board and the subsequent change in the proposals posting date reflect the CAISO’s priority that stakeholders have a greater opportunity to provide feedback on these issues.

The CAISO will schedule a conference call for approximately one week after the posting of the proposals and will provide further conference call details in a future Market Notice.

Documents previously posted on the DEC Bidding Rule and COG Pricing are available on the CAISO Website at: http://www.caiso.com/1822/1822931f287d0.html.

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For More Information Contact

DEC Bidding Rule: David Withrow at DWithrow@caiso.com or 916.608.7134

COG Pricing: Gillian Biedler at GBiedler@caiso.com or 916.608.7203

The California ISO strives to be a world-class electric transmission organization built around a globally recognized and inspired team providing cost-effective and reliable service, well-balanced energy market mechanisms, and high-quality information for the benefit of our customers.