[FAX NOTICE OF FILING 2]

Please deliver to official FERC service list members in
Docket Nos. EC96-19-003 and ER96-1663-003

On February 25, 1998, the California Independent System Operator Corporation (“ISO”) filed with the Federal Energy Regulatory Commission (“Commission”) an application to amend the ISO Operating Agreement and Tariff, including the Protocols, and a motion for waiver of the 60-day notice requirement (“Amendment No. 2”). The ISO requests that the proposed amendments be made effective as of the ISO Operations Date.

Amendment No. 2 clarifies a fundamental design requirement -- that all parties operating within the “ISO Control Area” (and any portion of the ISO Controlled Grid outside the ISO Control Area) must schedule with the ISO solely through the contractual framework and operational requirements of a Scheduling Coordinator.  

Parties on the official service list in Docket Nos. EC96-19-003 and ER96-1663-003 will receive copies of the proposed Amendment No. 2 by service in accordance with the Commission’s regulations.  Additionally, the proposed Amendment No.2 is being posted on the “Home Page” of the ISO at www.caiso.com.  Accordingly, any party desiring to obtain a copy of proposed Amendment No. 2 prior to receiving its regular service copy may do so by downloading the copy posted on the ISO “Home Page.”