FROM: Doug Larson

DATE: October 8, 1999

SUBJECT: Report on Budget and Staffing

Budget: At the annual meeting in April, the Board adopted a budget for FY 1999-2000 of $271,669 in expenditures with anticipated revenue of $366,900. This conservative, bare-bones budget assumed that neither of the proposals then pending at DOE (support of CREPC and the Air Pollution Prevention Forum) would be funded. Since then, DOE has funded the CREPC proposal at $75,000, one-half the requested amount, and the Air Pollution Prevention Forum proposal at $70,000, also less than requested. In addition, several PUCs and the California Energy Commission have made contributions to support CREPC's work.

Full member FY 99-00 dues have been received from Arizona, Colorado, New Mexico, Nevada (2/3s received, last 1/3 to be paid by HLW), Oregon, Utah, Washington, and Wyoming. Associate member dues have been received from Alberta, B.C. (partial payment), Nebraska and Saskatchewan. We are anticipating payment of dues by all states and provinces. The Colorado Office of Energy Management has informed the Board that it will not be paying dues in FY 2000-2001. However, the Colorado PUC (in cooperation with the Department of Natural Resoures and Department of Public Safety) are seeking funds to pay dues to the Board in FY 2000-2001.

With the expected payment of the remaining dues, the bottom line is the Board's finances look sound in FY 99-00. See the tables below which show income and expenditures, as approved by the Board in April, as revised based on the DOE grants and PUC contracts, and as received as of September 30.

Office space: Staff is working with the WGA to secure office space beginning March 2000. WIEB is seeking to reduce its space requirements by 60 percent. The existing building is raising its rents by 73 percent. Our objective is to move with WGA. The reduction in office space will be coupled with part-time telecommuting, which will depend on the availability of high-speed Internet access at employees' residences.

Staffing: In accordance with the Board's instructions in approving the current budget, I have hired a staff person to work primarily on CREPC-related activities. Terry Pruit has a law degree and undergraduate degrees in economics and English. He replaces Brad Wetstone who left in January 1998. As required in the Board's directions, there is a good expectation of sufficient funding to fill this position for at least two years.