Western Governors Warn Reliability of Electricity Grid at Risk (12/18/06)
Western Governors Warn Reliability of Electricity Grid at Risk FOR IMMEDIATE RELEASE Contact: Doug Larson, Western Interstate Energy Board, 303-623-9378, ext. 201 DENVER -- Western Governors today expressed concern that the Federal Energy Regulatory Commission will undercut the reliability of the Western power grid by denying funding for Western Interconnection Reliability Centers. A recent FERC decision means the West must rely on voluntary contributions to fund grid reliability centers. Throughout the six-year Congressional debate that led to the enactment of Section 215 of the Federal Power Act, the Western Governors Association strongly supported mandatory funding of grid reliability instead of strictly voluntary contributions. Our core belief then and now is that the reliability of the power grids should not be based on the voluntary action of market participants, the governors said in a letter to FERC. The letter was signed by Govs. Mike Rounds (S.D.), WGA Chairman and Dave Freudenthal (Wyo.), WGA Vice Chairman, on behalf of the association. The Governors noted that in other regions, FERC voted to pass on the costs of reliability centers to consumers through the transmission tariffs of regional transmission organizations or dominant transmission owning utilities. However, no such entities cover the entire Western Interconnection. In urging approval of mandatory funding of Western reliability centers, the Governors emphasized that Congress recognized in enacting Section 215 that there are regional differences that the Commission needs to accommodate. The Governors urged the Commission grant the Western Electricity Coordinating Councils (WECC) petition for rehearing of the Commission's denial of Section 215 funding for Reliability Centers. They also expressed their concurrence with the conclusion of the Western Interconnection Regional Advisory Body (WIRAB) that continued reliance on voluntary funding of Reliability Centers is discriminatory and not in the public interest. The WECC is the industry reliability organization covering the entire Western Interconnection. WIRABs membership is composed of appointees of the governors and Canadian premiers whose states and provinces are part of the Western Interconnection. It was established in April under the Federal Power Act to advise FERC on reliability issues. For more information on transmission and reliability issues, visit the WGA Web site at www.westgov.org or the WIEB Web site at www.westgov.org/wieb. The Western Governors Association is an independent, nonprofit organization representing the governors of 19 states and three U.S.-Flag islands in the Pacific. Through their Association, the Western governors identify and address key policy and governance issues in natural resources, the environment, human services, economic development, international relations and public management. # # # # #
December 18, 2006