FERC Order on NYISO AMP Filing

The Commission approved the NYISO's AMP proposal for Summer 2001, expiring on
October 31, 2001. The Commission acknowledges problems with the proposal,
such as 1) the AMP may mitigate bids when market power was not the cause of
the high bid, and 2) generators will not have a chance to explain their bids
prior to mitigation. Nevertheless, FERC still approves the proposal,
justifying its actions by saying that the proposal is only temporary.

The Commission notes that, while it prefers more limited automatic mitigation
procedures (where market power mitigation is tied to structural market power
problems), it will accept the NY proposal for this summer because NY is
concerned that supplies will be tight and demand response may not be
effective.

A copy of the order is attached. Please let us know if you have any
questions.

Sarah