FERC ruling on March 2000 Operating Reserves

RBowers@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

In its Order on Rehearing issued by FERC in Docket ER00-1969-002 on
November 8, 2001, the Commission directed the NYISO to re-calculate
operating reserve charges for March 2000 within 15 days.

The NYISO initiated the rebilling of March 2000 settlements through the
settlement adjustment process on the afternoon of November 21, 2001.
Advisory billing statements have been posting to customer web locations
since midnight November 22, 2001. The NYISO anticipates completion of the
March 2000 settlement adjustment at approximately 18:00, November 23, 2001.
Posting of advisory billing statements will continue through the evening,
but should complete by 23:00. Invoices are scheduled to be posted for this
settlement adjustment on, or about, December 7, 2001.

Regards,
Randy A. Bowers
Manager - Customer Settlements

----- Forwarded by Randy Bowers/NYISO on 11/23/01 09:37 AM -----

Randy Bowers
To: nyiso_cset@lists.nyiso.com, TIE List Server
11/19/01 11:41 cc:
AM Subject: FERC ruling on March 2000 Operating Reserves

In its Order on Rehearing issued by FERC in Docket ER00-1969-002 on
November 8, 2001, the Commission rejected the NYISO's request for rehearing
to continue to bill for operating reserves based on the $2.52 bid cap in
effect for the period March 1 through March 27, 2000. FERC also directed
the NYISO to re-calculate operating reserve charges for that period without
the bid cap in place.

On Friday, November 16, 2001, the NYISO filed a stay/extension with FERC in
order to postpone any re-billing pending an appeal of the FERC decision in
the Federal Appeals Court. In the event that FERC does not act in a timely
manner on the NYISO's request, the upcoming March 2000 settlement
adjustment, expected to be issued on or about December 7, 2001, will
reflect this re-calculation in accordance with the FERC Order. The total
amount of this adjustment is approximately $27 million, which will be
allocated to the appropriate suppliers and LSE's for the period of March 1
through March 27, 2000.

Regards,
Randy A. Bowers
Manager - Customer Settlements