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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: CRCommunications <CRCommunications@caiso.com< X-To: ISO Market Participants <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTICIPANTS@caiso.com< X-cc: X-bcc: X-Folder: \Williams III, Bill (Non-Privileged)\Bill Williams III X-Origin: Williams-B X-FileName: Williams III, Bill (Non-Privileged).pst ISO Market Participants: In the Federal Energy Regulatory Commission ("FERC") June 19 order, the California Independent System Operator Corporation ("ISO") was directed to pay generators for air district mitigation fees associated with NOx emissions as incurred by generators required to run in accordance with ISO Dispatch Instructions. The ISO specifically was ordered to develop an emission allowance charge assessed against all in-state load served on or through the ISO Controlled Grid in order to recover NOx emission mitigation costs which would be used to pay eligible generators for such mitigation costs. In compliance, the ISO filed, on July 10, 2001, proposed Tariff revisions to develop: 1.) a rate for the emission allowance charge, 2.) an escrow account for monies collected; 3.) a process through which generators would submit to the ISO invoices for emission mitigation fees; and 4.) a payment process through which the ISO would pay for such mitigation costs. In a Market Notice posted on August 1, 2001, the ISO published the initial emission allowance charge rate. The ISO has developed details of the methodology and calculations used to develop this rate and posted this information at http://www.caiso.com/docs/2001/07/12/2001071217521028555.html <http://www.caiso.com/docs/2001/07/12/2001071217521028555.html<; . The June 19 FERC Order also directed the ISO to exclude start-up fuel costs from the calculation of the mitigated market clearing price, and instead, to pay generators for such start-up fuel costs, in the same way as the ISO is to handle emission mitigation costs and fees. In a Market Notice posted on August 1, 2001, the ISO published the initial start-up fuel charge rate. The ISO has modified the previously posted start-up fuel charge rate and provided details of the methodology and calculation used to develop this rate. This information is also posted at http://www.caiso.com/docs/2001/07/12/2001071217521028555.html <http://www.caiso.com/docs/2001/07/12/2001071217521028555.html<; . CR Communications
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