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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Dianne Dienstein             October 15, 1996  CPUC - 83
             415-703-2423                           (A.96-07-001)

       CPUC INTERIM ORDER REGARDING FUNDING OF ISO AND PX

    In an interim order issued today, the California Public
Utilities Commission (CPUC) approved access to trust funds,
without condition, by the Independent System Operator (ISO) and
Power Exchange (PX) - two entities fundamental to the coming
competitive electric industry in California.
    The ISO will control and operate the state's electric
transmission system to ensure reliability and provide fair access
to all competitors.  The PX will pool electricity from producers
and issue periodic prices which consumers can use to alter their
electricity consumption or time of consumption, and investors or
marketers can use in their decision-making.
    The Commission's interim order allows the Boards of the ISO
and PX access to trust funds so they can cover the costs of
starting up prior to federal approval of their rates.
    The Commission orders utilities to execute the necessary
trust agreements with David Freeman, ISO and PX Trustee, within
the next 10 days.  Mr. Freeman has a long and established record
of excellence in the public power arena.  He was President and
Chief Executive Officer of the New York Power Authority and
former general manager of the Sacramento Municipal Utility
District.  He was also general manager of the lower Colorado
River Authority and before that Chairman and board member of the
Tennessee Valley Authority.
    The trust was established by the Commission in August and
funded with $250 million to build the hardware and software
systems for the ISO and PX.
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