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Press Release

WGA Chair Tells FERC Regional Approach
Best Way to Shape West’s Electricity Future

FOR IMMEDIATE RELEASE
November 2, 2001

Contact: Karen Deike or Doug Larson
(303) 623-9378

SEATTLE – Gov. Jane Dee Hull, Chairman of the Western Governors' Association, told federal regulators today that Western states are laying a solid foundation for ensuring the adequacy and reliability of the Western electric grid and should not be preempted by the federal government in those efforts. Hull also thanked the Federal Energy Regulatory Commission for reaching out to the states and holding a meeting in the West so they may better understand the unique character and challenges faced by the Western Interconnection.

Arizona’s governor spoke on behalf of her colleagues at a FERC meeting to gather information on the nation’s energy infrastructure. She said the electricity crisis over the past year has illustrated the limitations of unilateral actions by single states and by federal agencies, and she urged the commission to support the efforts of and progress made by Western states to shape the region’s electricity future.

"We are not making this progress because it was ordered by someone in Washington – far removed from our situation and our circumstances. We’ve been making these significant strides because it is the best way to provide reliable and affordable electricity to our customers," Hull said in prepared testimony. "We urge that federal reliability legislation delegate those responsibilities to the West. We also believe that those who pay the bill and bear the consequences of reliability decisions should oversee the process."

Hull said Western governors have taken a leadership role in addressing electric power issues, and in particular those related to adequate and reliable transmission. The governors brought together representatives of the public and private sector to develop a report entitled, "Conceptual Transmission Plans for the West." The commissioners praised that report in their invitation to attend today’s meeting and noted that it asked all the right questions. One of the key issues is the financing of new transmission, and a new WGA working group is examining the pros and cons of the various financing options identified in the report.

"On the critical issues of transmission siting and permitting, we are dismayed at the approach of some inside the (Washington) Beltway," Hull said. "To those who want to grant FERC the power of eminent domain for transmission, we urge you to carefully examine the real hurdles to new transmission and the track record in the Western Interconnection."

Hull said it is the federal land management agencies that frequently present the greatest challenge to the expeditious siting and permitting of new transmission. No state in the Western Interconnection has ever denied a permit for an interstate transmission line. It is hoped that federal agencies, including federal land management agencies and the federal power marketing administrations, will join in a cooperative effort to develop a multi-state siting protocol, which was initiated by the states at a separate meeting on Wednesday.

The governors have also been working with members of Congress and the Administration to ensure that electricity-related legislation does not create new centralized federal authorities to replace effective and existing state and regional activities. Letters to members of Congress and Gov. Hull’s testimony are available on the WGA Web site at www.westgov.org/wga/initiatives/energy/.

The Western Governors’ Association is an independent, nonprofit organization representing the governors of 18 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.

 

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