CALIFORNIA ISO MARKET NOTICE

Requested Client Action:  Action Date

Date of Distribution:  July 7, 2006

Categories:  Settlements and Market Clearing

Subject:  Notice of Separate Invoicing for Dispute Resolution
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Summary:  Charges associated with a Dispute Resolution will appear on Preliminary Settlement Statements issued July 26.  These charges will be invoiced separately from other monthly market charges on August 9.  Payment will be due August 16 at 10:00 a.m.  Adjustments will include 'SMUD GFN' in the charge description.

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Main Text:  Preliminary Settlement Statements issued Wednesday, July 26 will include charges associated with a Dispute Resolution.  The charges are for ancillary services during Trading Dates January 18, 2001 through February 21, 2001 (and will be issued only to Scheduling Coordinators that have previously been charged for ancillary services during those trading dates).  The charges arise from the resolution of the “SMUD Dispute Matter,” which is the title of one of the claims posted on the CAISO website at <http://www.caiso.com/clientserv/adr/index.html>.  The Statement of Claim for this Dispute Resolution is also available at this location.

These charges will be invoiced Wednesday, August 9, separately from other monthly market activity, pursuant to CAISO tariff section 11.6.3.4.  The Payment Date is August 16, 2006, and payment is due by 10:00 a.m.

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For More Information Contact:  Your Client Representative

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.

EA/ComPR/IPS/ds