August 2001 invoices

The invoices for August 2001 settlements were posted by 10:42 AM today,
Saturday, September 8, 2001. The NYISO apologizes for any inconvenience
resulting in posting these invoices a day after they were scheduled. The
Customer Settlements group makes every effort to render accurate invoices
on a timely basis. Although issued a day after their scheduled posting,
the invoices are still being issued within the 5-business days. {I'd
forgotten about Labor Day when I set up the schedule.}

Transmission Customers will observe adjustments for an error on in May 2000
Settlement Adjustment invoices that were issued in July. The total
adjustment amounted to $2,081,568.11 and was allocated across 2,261,753.08
MWh. Customers may validate their respective adjustments by computing
their ratio shares of the $2,081,568.11 using 2,261,753 MWh as the
denominator in their respective ratios of their May 2000 load. The reason
the denominator of the ratio share appears small is because the pay out of
this adjustment is to the Transmission Owners. In order not to assess the
TO's a proportionate share of the $2,081,568.11, which would defeat the
purpose of the adjustment, their withdrawals have been excluded from the
ratio share. Transmission Owners should observe a credit on their invoices
based upon their respective megawatt-mile coefficients for the period.

With regard to the November 1999 & December 1999 settlement adjustments
that were scheduled to be issued on the 7th, the NYISO intends to issue
those invoices next week. The issuance dates will ensure that customers
will have at least 5 business days to review the invoices prior to payments
being due to the NYISO. If necessary, the NYISO will reschedule settlement
dates for these months should our reconciliations take longer to complete;
however, we do not anticipate this at this time.

In addition, I'd like to take this opportunity to clarify a point that I
made in a TIE posting regarding the rebilling of the August 25th
settlements. The initial billing runs for August 25th were done without
considering ConEd's sub-zonal load. As a result, it appeared as though
there was no load in the ConEd sub-zones on the 25th and all DAM purchases
and bilateral transactions in those sub-zones were sold back to the market
in real time causing the Schedule 1 residual adjustment to be grossly
inflated. The reason this occurred was due to what appears to have been a
frame relay problem between the NYISO & ConEd resulting in the NYISO not
receiving a file from ConEd. By no means was my email notification of this
event to imply that ConEd was not complying with the daily load provision
process. This was merely a hardware/communications issue.

Regards,
Randy A. Bowers
Manager - Customer Settlements

(See attached file:
August_2001_Settlement_Invoices_Banking_Instructions.PDF)

- August_2001_Settlement_Invoices_Banking_Instructions.PDF