BEFORE THE 
PUBLIC UTILITIES COMMISSION OF NEVADA

In Re Application of NEVADA POWER COMPANY,	)
SIERRA PACIFIC POWER COMPANY, and SIERRA	)	Docket No. 98-7023
PACIFIC RESOURCES for approval of agreement	)
and plan of merger.						)

LATE-FILED PETITION FOR LEAVE TO INTERVENE OF THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION AND REQUEST FOR DESIGNATION OF ADDITIONAL ISSUES

	Pursuant to Rule 703.590 of the Rules of Practice Before the Public Utilities Commission of Nevada (“Commission”), Nevada Administrative Code § 703.590, and the Procedural Order issued on September 17, 1999, in this proceeding, the California Independent System Operator Corporation (“CAISO”) hereby petitions to intervene out-of-time in the above-captioned proceeding.
I.
COMMUNICATIONS
	Please address communications concerning this filing to the following persons:

N. Beth Emery, Vice President				Edward Berlin
     and General Counsel					Scott P. Klurfeld
Roger E. Smith, Senior Regulatory Counsel		David B. Rubin
The California Independent System 			Swidler Berlin Shereff 
    Operator Corporation					    Friedman, LLP
151 Blue Ravine Road					3000 K Street, NW, Suite 300
Folsom, CA  95630						Washington, D.C. 20007-5116
Tel:  (916) 351-2207					Tel:  (202) 424-7500
Fax: (916) 351-4436					Fax: (202) 424-7643

II.
BACKGROUND

	Pursuant to an Interim Order issued in this docket on June 23, 1999, Sierra Pacific Power Company and Nevada Power Company (“Applicants”) submitted their final proposal for an Independent Scheduling Administrator (“ISA”) for review by the Commission.  Applicants filed their final proposal for the “Mountain West ISA” with this Commission and the Federal Energy Regulatory Commission (“FERC”) on July 23, 1999.  Subsequent to the filing, the Commission conducted a technical conference on the Mountain West ISA for the purpose of discussing the issues to be addressed at an evidentiary hearing.  The September 17, 1999, Procedural Order issued after conclusion of that conference directed interested parties to submit any additional issues that they believe must be addressed.  Interested parties are also to file responsive testimony and any supporting documentation to the testimony that will be filed by Applicants.

III.
BASIS FOR MOTION TO INTERVENE

	The CAISO is a non-profit public benefit corporation organized under the laws of the State of California.  It is responsible for the reliable grid operation of several utilities as well as the coordination of the competitive electricity market in California.  In addition, the CAISO is the Security Coordinator for California in the Western Systems Coordinating Council (“WSCC”), handling approximately 40% of the WSCC load.  
	The CAISO is affected by any changes in the transmission grid in the Western Interconnection, and is particularly affected by any changes in contiguous states, including Nevada.  Thus, the establishment and operation of an ISA in Nevada will affect the operations of the CAISO Controlled Grid.  As a result of its obligation to operate a contiguous control area and in its role as one of the Security Coordinators of the WSCC, the CAISO needs to assure that the details of the Mountain West proposal will allow the Mountain West ISA to operate reliably in coordination and conjunction with the California markets.  The CAISO therefore has a direct and substantial interest in this proceeding.  
The CAISO submits that good cause exists to allow this late intervention.  The CAISO only learned of the Procedural Order on September 27, 1999.  September 27, 1999, was also the deadline specified in the Procedural Order for parties to submit a list of additional issues to be considered in this proceeding. Thus, there was not enough time to prepare a petition for leave to intervene and meet the deadline prescribed in the Procedural Order. 
Granting the CAISO's late intervention will not prejudice any party or cause disruption to the proceeding.  First, the CAISO agrees to accept the record as developed to date in this proceeding.  Second, the Procedural Order states that: (1) the entities that filed the Mountain West ISA are to file testimony and any necessary documentation no later than October 4, 1999, and (2) other interested parties are to file testimony and documentation no later than October 11, 1999.   Thus, granting the petition to intervene will not procedurally or substantively advantage the CAISO or prejudice other parties. 
The CAISO respectfully requests that the Commission grant its late-filed petition to intervene in this proceeding.  The CAISO also states that if its petition is granted, it intends to present evidence in this proceeding.  

IV.
ADDITIONAL ISSUES

	Since it commenced operations over a year ago, the CAISO has gained experience operating markets that have many features similar to those proposed in the Mountain West filing.  This experience, and the CAISO's review of the tariffs recently filed by Mountain West and the Applicants, have led it to conclude that there are several technical issues concerning the Applicants' proposal that should be addressed in the evidentiary hearing.  These concerns are listed in Attachment A to this pleading.  
The CAISO requests that the concerns listed in Attachment A be designated as “Additional Issues” as described in the Procedural Order.  The concerns of the CAISO are grouped into the following general categories:

1.	Interactions between the MWISA and the Nevada Control areas
	This issue relates to the critical communications that must take place at certain times between the ISA market operators and the control area operators to communicate all schedule changes in a manner acceptable to Nevada’s and neighboring states’ control area operators and to allow the maintenance of transparent market operations. 

2.	Scheduling Timelines
	This issue relates to the interaction of the proposed scheduling timeline for Nevada for both the day and hour markets with the Western Scheduling Coordinating Council scheduling rules as well as the management of the market within the time frames proposed.  This issue also relates to the ability to coordinate with neighboring control areas.

3.	Real Time Operations
	This issue relates to the management of uninstructed deviations, which may have a significant impact on the operations of the Nevada and neighboring control areas, as well as the establishment of correct pricing signals for the market both in Nevada and in neighboring states. 

4.	Ancillary Service Markets

	This issue relates to the operation of the Ancillary Services market in order to avoid the exercise of market power, assuring that sales to two markets are not made from the same physical capacity, the avoidance of gaming by sellers to achieve a more attractive price and the avoidance of discrimination in the purchase of such services.
5.	Firm Transmission Rights 

	This issue involves whether proposed Firm Transmission Rights will create a barrier to efficient utilization of transmission capacity, and whether the physical Firm Transmission Rights proposed will generate coordination and scheduling problems given the financial nature of such rights in neighboring markets.

6.	Overall Market Convergence 
	This issue relates to how Applicants’ proposal will interact with the overall convergence of the market to a common market design.

Attachment A was provided previously to the Applicants in order to assist in their understanding of the technical issues with which the CAISO is concerned. The CAISO is also providing a copy of its intervention in the Applicants’ filing before the Federal Energy Regulatory Commission as Attachment B to this pleading.

V.
CONCLUSION
   
	Wherefore, for the foregoing reasons, the CAISO respectfully requests: (i) that the Commission permit it to intervene out-of-time, (ii) that it be accorded full party status in this proceeding, and (iii) that the Commission designate the issues listed in Attachment A as Additional Issues in this proceeding.
 
						Respectfully submitted,
							
						_____________________________
						N. Beth Emery, Vice President
							and General Counsel
						Roger E. Smith, Senior Regulatory Counsel
						California Independent System 
							Operator Corporation
						151 Blue Ravine Road	
						Folsom, CA  95630
						Tel: (916) 351-2207

						Edward Berlin
						Scott P. Klurfeld
						David B. Rubin
						Swidler Berlin Shereff Friedman, LLP
						3000 K Street, N.W., Suite 300
						Washington, D.C.  20007-5116		
						Tel: (202) 424-7500

						Counsel for the California Independent
						System Operator Corporation

September 29, 1999

	PROOF OF SERVICE

I hereby certify that I have this day served the foregoing Late-Filed Petition for Leave to Intervene and Request for Designation of Additional Issues in Docket No. 98-7023, upon all Parties of Record in the proceeding as follows:

Robert Crowell, Esq.
CROWELL SUISICH et al
P.O.  Box 1000
Carson City, NV 89702

Fred Schmidt, Esq.
UCA
1000 E. William Street, Ste 200
Carson City, NV 89701

Gerald A. Lopez, Esq.
James M. Davenport, Esq.
COLORADO RIVER COMM
555 East Washington Ave, Ste 3100
Las Vegas, NV 89101-1048

James M. Copenhaver, Esq.
950 Idaho Street
Elko, NV 89801

Brian Sandoval, Esq.
421 Court Street
Reno, NV 89501

Colleen Rice, Esq.
NEVADA POWER COMPANY
P.O. Box 230
Las Vegas, NV 89151

Elizabeth Elliot, Esq.
SPPC/SPR
6100 Neil Road
Reno, NV 89511

Richard L. Hinckley, Esq.
NEVADA POWER COMPANY
6226 West Sahara Avenue
Las Vegas, NV 89146

David Fair, Gen Mgr
MT. WHEELER POWER, INC.
P.O. Box 1110
Ely, NV 89301

Curt Winterfeld
DESERT GENERATION & TRANS COOP
5295 South 300 West, Ste 300
Murray, UT 84107

Joyce Newman
UTILITY SHAREHOLDERS ASSN
P.O. Box 1823
Carson City, NV 89702

Robert W. Marshall, Esq.
MARSHALL HILL CASSAS et al
P.O. Box 2790
Reno, NV 89505

Charles Hauser, Esq.
SO NV WATER AUTHORITY
1001 S. Valley View Boulevard
Las Vegas, NV 89153

Dennis Peseau
UTILITY RESOURCES
1500 Liberty Street, SE, Ste 250
Salem, OR   97302

Lawrence A. Gallomp, Esq.
US DOI
1000 Independence Avenue, SW
Washington, DC 20585

Bjorn P. Selinder, Cty Mgr
CHURCHILL COUNTY
155 North Taylor Street, Ste 153
Fallon, NV 89406

James R. Gilmer, Ex Director
NV COGENERATION ASSOC
420 N. Nellis Blvd., #A3-117
Las Vegas, NV 89110

Michael Alcantar, Esq.
ALCANTAR & ELSESSER LLP
1300 SW 5th Avenue, Ste 1750
Portland, OR 97201

Kirk Gibson
ATER, WYNNE, HEWITT et al
222 SW Columbia, Ste 1800
Portland, OR 97201

F. Robert Reeder, Esq.
William Parsons, Esq.
201 S. Main Street, Ste 1800
Salt Lake City, UT 84111

Robert Sullivan
LV VALLEY WATER DIST
3700 West Charleston Blvd.
Las Vegas, NV 89153

Melvin D. Close, Jr.
JONES VARGAS
3773 Howard Hughes Pkwy, 3rd Fl S.
Las Vegas, NV 89153

Viju Patel, Ex. Manager
DEPT WATER RESOURCES
P.O. Box 942836 - Rm 1121-4
Sacramento, CA 94236-0001

Richard G. Campbell, Jr., Esq.
CAMPBELL & STONE
6880 S. McCarran Blvd., Ste 8
Reno, NV 89509

Edward F. Anibal, Jr., Ex. Director
SAGUARO POWER COMPANY
P.O. Box 90849
Henderson, NV 89009-0849

Renee van Dieen, Esq.
ALCANTAR & ELSESSER LLP
One Embarcardero, Ste 2420
San Francisco, CA 94111

William C. Dixon
BARRICK GOLDSTRIKE MINES
P.O. Box 29
Elko, NV 89803

Vincent P. Zodiaco
OXBOW GEOTHERMAL, INC.
9790 Gateway Drive, Ste 220
Reno, NV 89511

Patrick V. Fagan, Esq.
ALLISON, MACKENZIE et al
P.O. Box 646
Carson City, NV 89702

Lawrence J. Semenza, Esq.
501 S. Rancho Drive, Ste C-12
Las Vegas, NV 89106

William Todd Thomas
BORES & SCHILLER LLP
5301 Wisconsin, NW, Ste 570
Washington, DC 20015

Shawn M. Elicegui, Esq.
LIONEL, SAWYER & COLLINS
50 West Liberty Street
Reno, NV 89501

Samuel P. McMullen, Esq.
AVANSINO MELARKEY et al
165 West Liberty Street
Reno, NV 89501-1915

Harvey Whittemore, Esq.
LIONEL SAWYER COLLINS
50 West Liberty Street
Reno, NV 89501

Timothy K. Shuba
Heather K. Anderson
SHEA & GARDNER
1800 Massachusetts Avenue, NW
Washington, DC 20036

Patrick Joyce, Esq.
BLACKWELL, SANDERS et al
13710 FNB Pkwy, Ste 200
Omaha, Nebraska 68154

Edward Tancer, Esq.
BRADY POWER PARTNERS
P.O. Box 14000
Juno Beach, FL 33408

Paul E. Larsen, Esq.
LIONEL SAWYER & COLLINS
300 S. 4th Street, Ste 1700
Las Vegas, NV 89101

Paul Kaufman, Dir., Govt Affairs
ENRON CORP.
121 SW Salmon Street, Ste 1100
Portland, OR 97204

Lyman F. McConnell
TRUCKEE CARSON IRRIG DIST
P.O. Box 1356
Fallon, NV 89407-1356

Bill Malone
NEWMONT GOLD COMPANY
P.O. Box 669
Carlin, NV 89822-0669

Kristin B. McMillan, Esq.
HALE LANE PEEK et al
2300 W Sahara Ave., Ste 800, Bx 8
Las Vegas, NV 89102

Margaret Sommers, Esq.
SO CALIFORNIA EDISON
2244 Walnut Grove Avenue
Rosemead, CA 91770

John C. Walley, Esq.
SOUTHWEST GAS CORP.
P.O. Box 98510
Las Vegas, NV 89183-8150

Karen S. Haller, Esq.
PAIUTE PIPELINE COMPANY
P.O. Box 94197
Las Vegas, NV 89193-4197

I.R. Ashleman, II, Esq.
IR ASHLEMAN, II, LTD
1661 E. Flamingo Road, Ste 5A
Las Vegas, NV 89119

Whitfield Russell, Esq.
WHITFIELD RUSSELL ASSOC.
1225 Eye Street, NW, Ste 850
Washington, DC 20005

Benjamin Campbell, President
UNITED COGEN CORP.
1001 Westbank Drive
Austin, TX   78746

Terri Barber, Deputy Director
SO NV HOMEBUILDERS ASSOC
3685 Pecos McLeod
Las Vegas, NV 89121-3805

Debra Jacobson, Mgr. Reg. Affairs
SOUTHWEST GAS CORP.
P.O. Box 98510
Las Vegas, NV 89193-8510

Edward C. McMurtrie, VP/Gen Mgr
PAIUTE PIPELINE COMPANY
P.O. Box 94197
Las Vegas, NV 89193-4197

Sarah Goodfriend
701 Brazos, Ste 310
Austin, TX   78701

Glenn E. Camus, Esq.
SO CO ENERGY MARKETING LP
900 Ashwood Parkway, Ste 490
Atlanta, GA 30338
Mike Sloan, Esq.
CIRCUS CIRCUS ENTERPRISES INC
2880 Las Vegas Blvd., South
Las Vegas, NV 89109

Norman Ty Hilbrecht, Esq.
HILBRECHT & ASSOCIATES
723 S. Casino Center Blvd.
Las Vegas, NV 89101-6716

Richard M. Trachok, II, Esq.
BIBLE HOY & TRACHOK
201 W. Liberty, Ste 300
Reno, NV 89501-2027

Paul Lausa
COASTAL POWER COMPANY
Nine Greenway Plaza
Houston, TX  77046

Tom Dalzall, Esq.
INTL BROTHERHOOD OF ELEC WKRS
P.O. Box 4790
Walnut Creek, CA 94596

Thomas J. Reich
MGM GRAND HOTEL, INC.
3766 Las Vegas Blvd., South
Las Vegas, NV 89109

Martha J. Ashcraft, Esq.
KUMMER, KAEMPFER, et al
3800 Howard Hughes Pkwy, 7th Fl
Las Vegas, NV 89109

David J. Adler, Esq.
BONNEVILLE POWER ADMIN.
P.O. Box 3621
Portland, OR 97208-3621

Gary E. DiGrazia, Esq.
GOICOECHEA & DIGRAZIA LTD
530 Idaho Street
Elko, NV 89801

Steve Koener
COLORADO INTERSTATE GAS
Two North Nevada Avenue
Colorado Springs, CO 80903

Kelly L. Jackson, Esq.
P.O. Box 63
Jerome, ID 83338-0063

Cindy Ortega
MIRAGE RESORTS INC.
3400 Las Vegas Blvd., South
Las Vegas, NV 89109

Michael L.Jines
HOUSTON INDUSTRIES INC.
1111 Louisiana, 43rd Floor
Houston, TX 77002

Dan Kessler, Gen Mgr
WELLS RURAL ELECTRIC CO
P.O. Box 365
Wells, NV 89835

Linda A. Bowman, Esq.
BOWMAN & ROBINSON
540 Hammill Lane
Reno, NV 89511-2045

DATED at Washington, D.C. on September 29, 1999.

_________________________________
Rebecca A. Blackmer