Market Rules and Market Design

May 12, 2008

Requested Client Action

Information Only

COG Pricing Final Proposal Posted

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Summary

The CAISO posted the Final Proposal on the Constrained Output Generation (COG) Pricing issue on May 9, 2008.

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Main Text

The California Independent System Operator (CAISO) posted the Final Proposal for Pricing Logic Under Flexible Modeling of COG Units on Friday, May 9, 2008. Presentation of this item to the CAISO Board of Governors (Board) is planned for the July 9-10, 2008 Board Meeting. A Board decision is not required on the COG Pricing issue because no design changes are specified for the Markets and Performance (MAP) release based on this Final Proposal; therefore, the presentation will be an informational briefing only.

The DEC Bidding component of the MAP release had, until this point, been on the same schedule for Stakeholder involvement as the COG Pricing issue. Please note that Stakeholders will be notified in the near future about continuing stakeholder engagement in resolving the DEC bidding issue.

Documents previously posted on COG Pricing are available on the CAISO Website at http://www.caiso.com/1fb1/1fb1852066820.html.

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For More Information Contact

David Withrow at DWithrow@caiso.com or 916.608.7134

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.