System reliability in Southern California may receive a boost if the California Independent System Operator succeeds in entering a pact with the giant Los Angeles Department of Water & Power to buy spot-market power. ?They have excess generation to sell, and for reliability reasons there are times we?d like to be able to access that power,? said Gregg Fishman, grid operator spokesperson. Earlier this summer, CAISO opened informal discussions aimed at entering a scheduling coordinator agreement with the muni that would enable the grid operator to make spot-market purchases from Los Angeles, Fishman explained. ?We?ll have reserves,? said John Schumann, the department?s acting assistant general manager for power. The department has more than 7,000 MW of capacity. It projects load to peak this summer at around 5,400 MW. However, before the department can enter an agreement, it must work out some financial issues with CAISO, said spokesperson Carol Tucker. Los Angeles is looking for financial assurances from CAISO and the investor-owned utilities in its control area, said Fishman. The grid operator?s credit rating slipped?along with that of other energy businesses?during the energy crisis. However, Fishman said it should not be a problem currently. If an agreement is reached, Los Angeles would join a growing list of municipal utilities that have arrangements with CAISO for power transactions or transmission, according to Fishman. For instance, Pasadena recently filed an application to become a CAISO participating transmission owner, and last year four other Southern California municipal utilities?Anaheim, Riverside, Azusa, and Banning?entered similar agreements.