Review Draft - May 9, 2001

The primary responsibility for solutions resides with the states. The federal government’s role should be focused on enabling state solutions.

The Governors are committed to the establishment of Regional Transmission Organizations as the appropriate planning vehicle for transmission in the Western Interconnection. While RTOs are forming the following action plan is proposed.

Electric transmission serves as the backbone to provide reliability of electric service and to minimize the cost of providing such service. Inter-regional transmission within the Western Interconnection can: (1) enable distant, lower cost generation to serve load; (2) capture the benefits of seasonal electric load diversity; and (3) contribute to system reliability with less installed electric generation. A short-term action plan to ensure sufficient electricity in the absence of adequate transmission will be to increase the supply of natural gas to the West.

By June 15, a working group of public utility commissions in Idaho, Utah, Wyoming, Oregon, Arizona, and Washington should be formed to examine PacifiCorp’s restructuring plan. Such a working group could provide a template for inter-regional cooperation in the allocation of the cost of transmission enhancements.

By June 15, proposed principles for transmission expansion will be developed for consideration by the governors. The effort will begin with draft principles developed by WGA staff and Jack Davis (Arizona Public Service – APS).

Under the leadership of Governors Jim Geringer and John Kitzhaber, WGA lead governors on energy, a "conceptual plan" will be developed by July 15, identifying where new transmission capacity in the Western Interconnection may be economical or needed for reliability purposes. Jack Davis (APS) and Marsha Smith (Committee on Regional Electric Power Cooperation) will co-chair the effort to draft a proposal for the governors. The conceptual plan should include a preliminary list of problems, alternatives, costs and benefits, and reliability and environmental impacts. WGA staff is directed to promote balance among the interests participating in the development of the conceptual plan and should include Federal land management agencies and tribes. The plan should identify existing and future transmission constraints and high priority transmission additions.

At the WGA Annual Meeting on August 13, the conceptual plan will be presented and the development of a financing strategy will be discussed.

A financing strategy will be developed based on the input of the diverse interests in the Western Interconnection.

The governors emphasize their existing policies calling for: (1) federal reliability legislation that provides for enforceable reliability standards, deference to the West, and the authorization of state advisory bodies; and (2) the formation of a Western Electricity Coordinating Council that will merge the functions of the Regional Transmission Associations and the Western Systems Coordinating Council.