Behind the Stage Two

---------------------- Forwarded by Phillip K Allen/HOU/ECT on 03/15/2001
02:22 PM ---------------------------

"Arthur O'Donnell" <aod@newsdata.com< on 03/15/2001 11:35:55 AM
Please respond to aod@newsdata.com
To: Western.Price.Survey.contacts@ren-10.cais.net
cc: Fellow.power.reporters@ren-10.cais.net
Subject: Behind the Stage Two

FYI Western Price Survey Contacts

Cal-ISO's declaration of Stage Two alert this morning was triggered
in part by decision of Bonneville Power Administration to cease
hour-to-hour sales into California of between 600 MW and 1,000
MW that it had been making for the past week. According to BPA,
it had excess energy to sell as a result of running water to meet
biological opinion flow standards, but it has stopped doing so in
order to allow reservoirs to fill from runoff. The agency said it had
been telling California's Department of Water Resources that the
sales could cease at any time, and this morning they ended.

Cal-ISO reported about 1,600 MW less imports today than
yesterday, so it appears other sellers have also cut back.
Yesterday, PowerEx said it was not selling into California because
of concerns about its water reserves. BPA said it is still sending
exchange energy into California, however.

More details, if available, will be included in the Friday edition of the
Western Price Survey and in California Energy Markets newsletter.