NOTICE OF FILING

Please deliver to Official FERC Service list members in 
Docket Nos. EC 96-19-003 and ER 96-1663-003

On March 3, 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 ISO Protocols, and a motion for waiver of the 60-day notice requirement (“Amendment No. 4”).  The ISO requests that the proposed amendments be made effective as of the ISO Operations Date.
The ISO states that Amendment No. 4 would provide (1) a mechanism to resolve mismatches in Inter-Scheduling Coordinator Trades; (2) a mechanism to allow Scheduling Coordinators to buy back and sell back Ancillary Services in the Hour-Ahead Market; (3) a clarification providing for the use of Day-Ahead Market Clearing Prices to allocate Replacement Reserves; (4) amendments to conform the ISO Tariff provisions on Black Start and Voltage Support to contractual agreements between the ISO and providers of Black Start and Voltage Support; (5) clarification of the payments process for Reliability Must-Run Contracts pursuant to Section 5.2.7 of the ISO Tariff; (6) clarifications to definitions for the Imbalance Energy calculation; (7) a simplification of the calculation of the Usage Charge relating to Participating TO debits; (8) amendments necessary to reflect the limitations of a temporary manual workaround for assessing Wheeling Access Charges until a recently discovered software variance can be corrected; (9) amendments to various default Usage Charge provisions to address gaming opportunities; and (10) deletion of the requirement that the ISO publish the Hour-Ahead GMMs.  The ISO states that the proposed amendments are necessary for the initial operations of the ISO.
Parties on the Official Service list in Docket Nos. EC96-19-003 and ER96-1663-003 will receive copies of the proposed Amendment No. 4 by service in accordance with the Commission’s regulations.  Additionally, the proposed Amendment No. 4 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. 4 prior to receiving its regular service copy may do so by downloading the copy posted on the ISO’s “Home Page.”