TO: Western Interstate Energy Board

FROM: Doug Larson

DATE: October 23, 2001

Subject: Financial Report

As the attached tables show, the financial position of the Board continues to be strong, especially with the continuation of two previous contracts with the Department of Energy and one new contract.

In July, DOE awarded funding for the second year of a contract for the Western Interconnection Wind Energy Evaluation Team and in late September, awarded WGA a second year for the SIPs Guidebook. (WIEB has a subcontract with WGA for the SIPs Guidebook.) DOE also approved the carry-over of funds not spent in the first year of those projects into the second year. Additionally, some funds were carried over for the Transmission Pricing project. In September, we were notified that WIEB had been selected to receive $75,000 in funding for one new project, the Western Interconnection Demand Responsiveness Team. WIEB will also received funds from EPA through the Western Regional Air Partnership to complete the Air Pollution Prevention Forum’s work on renewable energy and energy efficiency.

Dues have been received from all but three states and one province. The Western Conference of Public Service Commissioners will once again be providing $12,000 to support CREPC’s work.

Board expenses continue to be lower than anticipated, and the carry-over this year was larger than estimated, due in large part to the delay in hiring new personnel to replace Terry Pruit and Dale DeCesare who left the Board in the Spring. In the middle of July, Sharon Irwin joined the WIEB staff.

DOE did reject four other proposals submitted by WIEB as part of the January 2001 broad-based solicitation. In essence, these proposals were rejected because they were regional in nature with no strategies for expanding the results nationwide. Click here for the rejection letters for these proposals. Since one of the rejected projects was on siting, the tentative project that had been negotiated with British Columbia on examining cross border environmental impacts during facility siting was cancelled.

The following tables show estimated income and expenses for FY 2001-2002.

					Western Interstate Energy Board
					Fiscal Year 2001-2002							Table 1
					Estimated Income
					Adopted by the Board April 2001
								Estimated		Revised*
								Income		Estimated		Received as
								April 2001		Income		of 10/9/01
Beginning Cash Balance								$ 277,861		$302,700		$ 302,700
INCOME
		Members
			Arizona					18,000		18,000
			California					18,000		18,000		18,000
			Colorado					18,000		18,000
			Idaho					18,000		18,000		18,000
			Montana					18,000		18,000
			New Mexico					18,000		18,000		18,000
			Nevada					18,000		18,000		12,000
			Oregon					18,000		18,000		18,000
			Utah					18,000		18,000		18,000
			Washington					18,000		18,000		18,000
			Wyoming					18,000		18,000		18,000
		Associate Members
			Alberta					8,000		8,000
			British Columbia					8,000		8,000		8,000
			Nebraska					10,500		10,500		10,500
			Saskatchewan					8,000		8,000		8,000
								232,500		232,500		164,500
		Special Contracts
			PUC contracts					-		-		-
			California EOB					4,400		4,400		4,400
			Nevada PUC							4,400		4,400
			Oregon PUC							4,400		4,400
			Utah PSC
			Washington UTC					-		-		-
								4,400		13,200		13,200
		Other
			Interest					4,000		4,000		1,336
			Misc. (mtg. income, etc)					2,000		2,000		-
								6,000		6,000		1,336
Total Unrestricted								520,761		554,400		481,736
		Restricted
			WCPSC					12,000		12,000
			EPA AP2					35,000		30,000
			Wind Evaluation (2nd year and carrryover)					25,000		72,000
			Transmission Pricing (2001carryover)					25,000		16,300
			SIPs Guidebook (2nd year and carryover)					12,233		52,500
			Demand Response					-		75,000		-
Total Restricted								109,233		257,800		0
TOTAL INCOME								629,994		812,200		481,736
			* Revised to reflect second year funding for Wind and SIPs Guidebook project and new Demand Response project.
						Western Interstate Energy Board							Table 2
						Fiscal year 2001 - 2002
						Budget adopted April 2001
													Budgeted
							Estimated		Revised*		Expenses		Expenses
							Expenses		8/28/2001		as of 9/30/01		for 3 months
MEETING EXPENSES
	WIEB						8,000		8,000				2,000
	Transmission pricing						300		300				75
	Wind						500		1,500				375
	EPA WRAP/AP2						5,000		5,000				1,250
	Demand response						-		1,000				250
							13,800		15,800		-		3,950
STATE TRAVEL
	Transmission pricing						3,000		3,000		3,000		750
	Wind						6,334		14,334		5,975		3,584
	Demand response						-		12,000				3,000
							9,334		29,334		8,975		7,334
OTHER TRAVEL
	EPA WRAP/AP2						3,000		3,000		-		750
PERSONNEL and OFFICE EXPENSE
Salaries							230,196		230,196		45,166		57,549
Payroll Taxes							18,531		18,531		3,523		4,633
Health & Life Ins.							21,840		21,840		2,939		5,460
Trust Fund Expense							17,265		17,265		3,387		4,316
Liability & W. Comp. Ins.							2,300		2,300		-		575
Auditing							4,500		4,500		-		1,125
Staff Travel											-		-
	WIEB						12,000		12,000		1,259		3,000
	EPA - AP2 forum						4,800		4,800		-		1,200
	Transmission pricing						2,000		2,000		-		500
	Wind						2,000		3,000		-		750
	Demand response						0		3,000		-		750
Dues & Subscriptions							2,500		2,500		-		625
Computer Network							3,000		3,000		105		750
Equipment							6,500		6,500		335		1,625
Miscellaneous							1,500		1,500		53		375
Express Mail							300		300		81		75
Supplies							1,500		1,500		243		375
Postage							800		800		30		200
Printing							500		500		138		125
Copier Expense							3,000		3,000		920		750
Rent							18,000		18,250		4,550		4,563
Telephone							5,000		5,000		1,146		1,250
Telecommuting							4,000		4,000		-		1,000
Contingency							1,500		1,500		-		375
	Subtotal						363,532		367,782		63,874		91,945
				TOTAL			389,666		415,916		72,849		103,979
				Estimated carryover			240,328		396,284
*Revised to reflect expenses associated with new Demand Response project funding from DOE and
	second year of funding for the Wind project

Department of Energy

Washington, DC 20585

August 20,2001

Ms. Alison Wilson

Western Interstate Energy Boarc

1515 Cleveland Place, Suite 20C

Denver, CO 80202

Project Title: Bringing Effective Facility Siting into a Competitive Electricity Market

Dear Ms. Wilson:

We appreciate your interest in the Department of Energy's (DOE) programs as well as the time and effort expended

in preparing your application in response to Program Area of Interest 6A of DOE'S Solicitation, DE-PSOI-

OIEE10781, entitled "Technology and Systems Integration: Information Dissemination, Outreach and Related

Analysis."

Applications submitted in response to this solicitation were highly competitive, and the Office of Energy Efficiency

and Renewable Energy (EERE) subjected all of the applications to a rigorous merit review process. Awards are

now being processed. However, a combination of programmatic priorities and funding limitations precluded the

selection of all applications for award, and many applications with excellent potential remain unfunded. The subject

project was not selected for award. The Merit Review Committee indicated that the project addresses the needs of a

broad cross-section of energy users in the western states. In addition, the Committee indicated that your personnel

have an impressive array of experience pertaining to the proposed activities. However, the Committee indicated that

your proposal did not demonstrate consideration for similar projects taking place at the national level and that your

proposal offered no strategies for enhancing the applicability of the results nationwide. The Committee, therefore,

determined that the impact of the project would mostly be confined to the western states without further discussion

of strategies to facilitate applicability on a broader scale.

It is anticipated that EERE will conduct a broad-based solicitation for information dissemination and outreach

activities on an annual basis. The upcoming solicitations will be published on the Industry Interactive Procurement

System at World Wide Web page at http://doe-iips.pr.doe.gov.

Your participation in this solicitation is appreciated. It is hoped that your interest in DOE programs will continue.

Sincerely,

JIII~C;t;l ;ly, ,

~3·t~2~~

I

Beth A. Tomasoni

Contracting Officer

Office of Headquarters Procurement Services

Department of Energy

Washington. DC 20585

August 20,2001

Ms. Allison Wilson

Western Interstate Energy Board

1515 Cleveland Place, Suite 200

Project Title: Promoting Distributed Generation in the West

Dear Ms. Wilson:

We appreciate your interest in the Department of Energy's (DOE) programs as well as the time and effort expended

in preparing your application in response to Program Area of Interest 6A of DOE'S Solicitation, DE-PSOI-

OIEE10781, entitled "Technology and Systems Integration: Information Dissemination, Outreach and Related

Analysis."

Applications submitted in response to this solicitation were highly competitive, and the Office of Energy Efficiency

and Renewable Energy (EERE) subjected all of the applications to a rigorous merit review process. Awards are

now being processed. However, a combination of programmatic priorities and funding limitations precluded the

selection of all applications for award, and many applications with excellent potential remain unfunded. The subjec

project was not selected for award. Your project addresses key barriers to the use of Distributed Energy Generation

(DEG) technology in the West, and the Merit Review Committee indicated that providing information to assist in

overcoming these barriers would have an impact on a broad cross-section of energy users and generators in the

targeted region. In addition, the proposed personnel have excellent qualifications and have access to key decision

makers in the targeted region. However, the Merit Review Committee indicated that the project focuses mainly on

the West and does not demonstrate how the results will be applicable to other regions or applicable on a nationwide

basis. In addition, your approach did not have clearly defined milestones or deliverables that would easily enable

DOE to gauge the project's success.

It is anticipated that EERE will conduct a broad-based solicitation for information dissemination and outreach

activities on an annual basis. The upcoming solicitations will be published on the Industry Interactive Procurement

System at World Wide Web page at http://doe-iips.pr.doe.gov.

Your participation in this solicitation is appreciated. It is hoped that your interest in DOE programs will continue.

Sincerely,

Beth A. Tomasoni

Contracting Officer

Office of Headquarters Procurement Services

Department of Energy

Washington, DC 20585

August 27,2001

Ms. Alison Wilson

Western Interstate Energy Board

1515 Cleveland Place, Suite 200

Denver, CO 80202

Project Title: Improving Electricity Demand Responsiveness through Building Technologies

Dear Ms. Wilson:

We appreciate your interest in the Department of Energy's (DOE) programs as well as the time and effort expended

in preparing your application in response to Program Area of Interest 4 of DOE'S Solicitation, DE-PSOI-

OIEE10781, entitled "Office of Building Technology, State and Community Programs: Information Dissemination,

Outreach, and Related Technical Analysis."

Applications submitted in response to this solicitation were highly competitive, and the Office of Energy Efficiency

and Renewable Energy (EERE) subjected all of the applications to a rigorous merit review process. Awards are

now being processed. However, a combination of programmatic priorities and funding limitations precluded the

selection of all applications for award, and many applications with excellent potential remain unfunded. The subject

project was not selected for award. Your project has the potential to produce widespread benefits over the long

term by attempting to motivate large electricity users to reduce their usage during periods of peak demand. Your

proposed personnel are also very well-qualified for this type of work based on their previous experience. However,

the short term impact of your project is likely to be limited. The process specified in your application is not

immediately available, and it will take time to develop this process, implement it and educate users on how to use it

in their individual companies. In addition, the Merit Review Committee indicated that the system developed would

reward only those users with the flexibility to reduce their usage during periods of peak demand while those that

need to maintain full operations would have no alternative but to pay higher prices.

It is anticipated that EERE will conduct a broad-based solicitation for information dissemination and outreach

activities on an annual basis. The upcoming solicitations will be published on the Industry Interactive Procurement

System at World Wide Web page at http://doe-iips.pr.doe.gov.

Your participation in this solicitation is appreciated. It is hoped that your interest in DOE programs will continue.

Sincerely,Z

Beth A. Tomasoni

Contracting Officer

Office of Headquarters Procurement Services

I

Department of Energy

Washington, DC 20585

August 20,2001

Ms. Allison Wilson

Western Interstate Energy Board

1515 Cleveland Place, Suite 200

Denver, CO 80202

Project Title: Understanding and Benefitting from Regional Synergies between Energy and Air Quality

Dear Ms. Wilson:

We appreciate your interest in the Department of Energy's (DOE) programs as well as the time and effort expended

in preparing your application in response to Program Area of Interest 6A of DOE'S Solicitation, DE-PSOI-

OIEE10781, entitled "Technology and Systems Integration: Information Dissemination, Outreach and Related

Analysis."

Applications submitted in response to this solicitation were highly competitive, and the Office of Energy Efficiency

and Renewable Energy (EERE) subjected all of the applications to a rigorous merit review process. Awards are

now being processed. However, a combination of programmatic priorities and funding limitations precluded the

selection of all applications for award, and many applications with excellent potential remain unfunded. The subjeci

project was not selected for award. Your proposal focuses on important issues pertaining to deregulated markets

and provides a thorough analysis of the emerging problems associated with these markets. Your proposed

personnel also have excellent qualifications based on their previous experience with projects of similar complexity

and scope. In addition, your approach offers clearly defined milestones and deliverables. However, the Merit

Review Committee indicated that the impact of the project is concentrated in the western states and that no detailed

strategies are offered to facilitate the transfer of the lessons learned to other regions.

It is anticipated that EERE will conduct a broad-based solicitation for information dissemination and outreach

activities on an annual basis. The upcoming solicitations will be published on the Industry Interactive Procurement

System at World Wide Web page at http://doe-iips.pr.doe.gov.

Your participation in this solicitation is appreciated. It is hoped that your interest in DOE programs will continue.

Sincerely,

Beth A. Tomasoni

Contracting Officer

Office of Headquarters Procurement Services