CERS Update

Market Notice
October 29, 2001

Market Participants:

The ISO has been notified that effective HE0800 (beginning at 0700)
October 30, 2001, CERS will no longer provide creditworthy backing of
negative decremental energy bids and negative OOM sales (i.e. any bids below
zero dollars). If for reliability purposes, the ISO needs a negative
decremental energy bid, CERS has indicated to the ISO that it may back such
bids on a case-by-case basis at its sole discretion. Accordingly, in
continuing compliance with FERC's orders, the ISO will not dispatch any
negative decremental energy bids or any negative OOM sales absent assurances
of creditworthy backing.

Please contact your Client Representative with any questions.