Summary of October 29-30 Western Interstate Energy Board Meeting
Seattle, Washington
With 10 states (AZ, CA, ID, MT, NV, NM, OR, UT, WA, WY) and two provinces (AB, SK) present, the Board:
· Approved the minutes of the April 16-17 Board meeting in Scottsdale.
· Received a report from Doug Larson, Executive Director, on the Board’s finances and the activities of the
Board and its committees since April.
· Agreed to a proposal by Craig Marks (AZ) to renew efforts to involve the northern Mexican states in the
Board’s work, including an invitation to the next meeting of the Board.
· Agreed to continue the Board’s current focus on electricity issues, but also set as priorities an assessment of
natural gas demand, supply and deliverability, the issue of petroleum dependence, climate change, and
increased interaction with Mexican states.
· Identified areas of potential future projects, including:
o Coordinated natural gas assessment – western demand, deliverability and supply;
o Energy infrastructure (electric and gas), including better ways to define what is needed (mitigate market
power, fuel diversity) and resistance to terrorism (including distributed generation);
o Coordination on facility siting;
o Green tags (perhaps through the Western Regional Air Partnership);
o Energy information systems, including link to market monitoring needs;
o Western Electricity Coordinating Council and RTO policies that affect renewables;
and
o Supp ort to a Regional Advisory Body on reliability if appropriate federal legislation is enacted.
· Received reports from Jennifer Salisbury (NM) on the state’s Sustainable Energy Collaborative, from Jeff
Burks (UT) on the state’s PowerForward initiative, from Bill Eastlake (ID) on the fallout from the state’s
irrigation buyback program, and from John Savage (OR) on the state’s windy landowners’ guide.
· Received briefings from Bill Keese (CA) on the California Energy Commission’s natural gas assessment and
from Arne Olson (WA) on Washington’s natural gas assessment.
· Discussed with Jim Souby, WGA Executive Director, the extensive energy priorities of the governors and the
Board’s contribution to those activities, including the energy policy roadmap resolution adopted in August, the
WGA Conceptual Transmission Plans report, the MOU signed by WGA and five federal agencies for
cooperation on energy issues, the WGA Transmission Financing Committee, the post 9/11 focus on terrorism,
development of a multi-state protocol on the review of proposed interstate transmission projects, interest in
improving energy information; and interactions with FERC commissioners, Congress, and the Administration on
the governors’ energy priorities.
· Received a report from Cathy Ghandehari (DOE Denver) on the status of the review of the Department’s
efficiency and renewable energy programs, new interest at DOE in distributed generation, transmission, and
electric reliability, the FY 2002 energy efficiency budget, and a December 17-18 meeting in Denver on state
emergency energy plans.
· Held a roundtable among the states and provinces on energy security and the impact of the economic
slowdown on state/provincial energy budgets.
o UT – The governor has adopted a homeland security plan; efforts are shifting from energy emergency
response to energy security; DNR is primarily responsible for petroleum emergencies, the PSC is responsible
for electricity and gas emergencies; DNR is responsible for linking energy companies with the state
emergency agency; the state is expecting a $160 million shortfall although reliance on oil overcharge funds
and federal funds may shield energy programs from the cuts;
o CA – The CEC is involved in reviewing potential energy emergencies, but the Office of Emergency Services
is the implementing agency; CEC web site has been stripped of sensitive information; open meeting
requirements limit the Commission’s ability to meet on security issues; decreasing electricity demand is
reducing funding to the CEC, but the state’s system benefit charge has been renewed for ten years;
o AZ – Utility preparation for Y2K has been useful in addressing security issues, however, utilities are reluctant
to provide information; the floodwarning system that links emergency agencies with police vehicles is useful in
addressing energy security issues; the governor has appointed a security person; there is increased security at
the Palo Verde nuclear station; of the $14 million remaining in oil overcharge funds, $8-10 will be used for
efficiency improvements in schools; the state is expecting a $1.6 billion shortfall in the next biennium; [Jim
Souby noted the governors’ interest in better school buildings to improve learning and reduce energy costs,
and a related effort WGA is pursuing with the U.S. Department of Education, EPA, and DOE.]
o ID -- The state is dusting off emergency plans; emergency planning is a carryover from Y2K preparations;
an executive order was issued this past winter shifting the state’s focus from emergency planning to security
planning; a two percent cut in the state budget is anticipated, but this cut will probably not affect energy
programs;
o WA – The Military Department operates all emergency planning activities with the exception of energy,
which is handled by the Office of Trade and Economic Development; coordination with the Military
Department is underway; rulemaking on electricity and petroleum emergency plans will be undertaken; the
state’s open records law limits ability to keep information confidential and a legislative fix may be needed;
DOE is reluctant to share data with the states, because of the lack of confidentiality protections; the state
now has 15 pipeline inspectors as a result of a major pipeline disaster; the state is expecting a $1 billion
shortfall, however, most energy activities are self-funded and will take a small hit; state schools must meet
energy efficiency design standards to receive a state match of construction funds;
o NV – Tourism, the state’s major industry, has taken a major hit since 9/11; surplus funds at PUC may be
used for security purposes; there have been difficulties in acquiring information as part of the state’s
18-month old docket on electric reliability;
o NM -- The Public Safety Department coordinates the state’s security issues; EMNRD focuses on energy
emergency response; the state is currently forecasting a slight increase in General Fund revenues, but the
governor is asking for a flat budget in anticipation of future revenue forecasts that will show falling revenues;
o AB – Falling revenues have resulted in a $1 billion cutback in construction projects;
o MT – The state’s energy emergency response plan has been updated, but it does not address terrorism;
o OR – The governor has established a security office; open meeting requirements have limited meetings on
security issues; budget cuts of up to 10 percent are being planned;
o SK – The province has a 1980s vintage energy emergency plan; there are no sunshine law issues in the
province, but filings by oil companies have been general without many specifics; there has been little impact
of budget cuts thus far, but a new initiative on energy efficiency may be hurt;
· The Board empowered the Executive Committee to set the time and place of the next Board meeting.
Please call (303/573-8910) of e-mail me if you have any questions about this summary.