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2007 LARS Request for Proposals

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Summary:

Request for Proposals To Provide 2007 Local Area Reliability Service To California Independent System Operator Corporation, Dated June 20, 2006

Extract:

The California Independent System Operator Corporation (“CAISO”) seeks proposals from respondents capable of providing Local Area Reliability Service (“LARS”) during the 2007 calendar year. The CAISO desires to receive proposals for (i) generation resources capable of providing LARS, (ii) transmission infrastructure that will decrease the generation requirements in a given local area, and (iii) load management alternatives that will provide reduced demand in a given local area. The CAISO invites all stakeholders to submit proposals under this RFP to meet its LARS requirements for the 2007 calendar year, as identified through the CAISO’s 2007 Reliability Must-Run Technical Study (“Technical Study”). Respondents should note that the CAISO Market Redesign and Technology Upgrade (“MRTU”) project as well as development of the Resource Adequacy requirements may eliminate the need for Reliability Must-Run (“RMR”) Agreements some time in the future. Nonetheless, in an effort to provide greater lead-time to develop LARS solutions and, where appropriate, to allow consideration of multi-year LARS proposals, the CAISO will accept and evaluate proposals to provide LARS for years beyond 2007 as part of this RFP. While the CAISO expects that in the case of generating resources it will contract for LARS during 2007 using the existing pro forma RMR Agreement, the CAISO will only consider a multi-year proposal that provides exceptional benefits at a greatly reduced cost.

Document Locations:

• Local Area Reliability Service (LARS)