November 1999 Settlement Adjustment Invoices

The invoices for November 1999 settlement adjustments will be posted by
23:00 today, Monday, September 17, 2001. The NYISO apologizes for any
inconvenience resulting in the delay in posting these invoices.

Transmission Customers will observe adjustments to their settlements to:
(1) recover costs related to adjustments made outside of the billing
process; and (2) adjust the NYISO clearing account balance to zero for
November 1999 settlements.

With regard to the adjustments made outside of the billing process, these
adjustments could not have been corrected by a billing code or determinant
data fix. As a result, the mechanism of paying and funding the adjustments
is done through adjustments outside of the billing process. The total
adjustment of $14,178.39 was allocated across 5,059,790 MWh. Customers may
validate their respective adjustments by computing their ratio shares of
the $14,178.39 using 5,059,790 MWh as the denominator in their respective
ratios of their November 1999 load. Customers will observe a difference in
the denominators used in the ratio share allocation of this adjustment
versus adjustment #2. This is due to the fact that the costs for
adjustment #1 are not allocated to those that received payment through the
adjustment, which would defeat the purpose of the adjustment.

Prior to October 2000, the NYISO recovered or refunded differences in the
revenue received from Schedule 1 charges, which were comprised of
forecasted uplift & residual adjustments, and the costs actually incurred
by adjusting subsequent month's Schedule 1 rates accordingly. In October
2000, the NYISO implemented a change in the tariffed Schedule 1 provisions
that allowed the recovery and refund of these costs as they were incurred.
In order to allow any changes in uplift and residual adjustments to be
settled through the settlement adjustment process, the code implemented in
October 2000 was used to report these costs to the market. This results in
an over-collection which is being returned to Customers through an
adjustment to their monthly balances. This billing treatment for the
November 1999 settlement adjustments resulted in credits to the market
totaling $5,583,559.78 allocated across 5,074,229 MWh. Customers where
allocated their portion of this adjustment based upon their respective
ratio shares of the 5,074,229 MWh of NYISO transmission service billed for
the month.

November 1999 settlement adjustment settlement dates have been changed to
address the delay in invoicing. Payments due to the NYISO for November
1999 settlement adjustments are due to be received in the NYISO clearing
account on Monday, September 24, 2001. Payments due to market participants
will be made on Thursday, September 27, 2001. Please refer to the
attachment below for banking instructions.

The NYISO anticipates that the 2nd settlement adjustment for December 1999
settlements will be invoiced tomorrow, Tuesday, September 2001 by 23:00.
Settlements dates will be adjusted to accomodate the invoice date changes.
Given the aforementioned schedules, payments due to the NYISO for December
1999 settlement adjustments will be due to be received in the NYISO
clearing account on Tuesday, September 25, 2001. Payments due to market
participants will be made on Friday, September 28, 2001. The NYISO will
confirm the invoicing schedule for December 1999 settlements tomorrow.

Regards,
Randy A. Bowers
Manager - Customer Settlements

(See attached file: November_1999_2nd_Settlement
Adjustment_Invoice_Banking_Instructions.PDF)
- November_1999_2nd_Settlement Adjustment_Invoice_Banking_Instructions.PDF