[FAX NOTICE OF FILING 3]

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 ISO Schedules and Bids Protocol and the ISO Scheduling Protocol, and a motion for waiver of the 60-day notice requirement (“Amendment No. 3”).  The ISO requests that the proposed amendments be made effective as of the ISO Operations Date.

Amendment No. 3 relates to preservation of the priority in the ISO’s Congestion Management process for Reliability Must-Run Generation, Eligible Regulatory Must-Take Generation and Eligible Regulatory Must-Run Generation over Congested Inter-Zonal Interfaces.  Amendment No. 3 clarifies, in particular, that Eligible Regulatory Must-Take Generation and Eligible Regulatory Must-Run Generation will have the same priority before and after the ISO Operations Date. 

Parties on the official service list in Docket Nos. EC96-19-003 and ER96-1663-003 will receive copies of the proposed Amendment No. 3 by service in accordance with the Commission’s regulations.  Additionally, the proposed Amendment No. 3 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. 3 prior to receiving its regular service copy may do so by downloading the copy posted on the ISO “Home Page.”