RESOLUTION NO. 99-2

Protecting Electric System Reliability in the West

Introduced by the Energy & Minerals Committee

WHEREAS, low-cost, reliable electricity supplies are essential for a healthy western economy and are critical for the public health and safety of westerners;

WHEREAS, changes occurring in the electric power industry require a new approach to ensuring the reliability of the western transmission system; and

WHEREAS, the western electric power industry, working in collaboration with Western States and provinces, are implementing a new reliability management systems based on enforceable contracts; and

WHEREAS, the reliability management system can be an effective tool for maintaining the reliability of the western transmission system in the near-term, a long-term solution is likely to require federal legislation; and

WHEREAS, legislation pending in Congress establishes a new enforceable system for protecting electric power reliability; and

WHEREAS, some versions of the legislation pending in Congress provide no meaningful role for states in reliability decisions - decisions that affect fundamental state responsibilities to protect the public health and safety; and

WHEREAS, such reliability legislation is in the interest of the West only if it provides for deference to interconnection-wide standards developed in the West and ensures a significant role for states in reliability decisions;

NOW, THEREFORE, BE IT RESOLVED that CSG-WEST urges Congress to incorperate into any federal reliability legislation: (1) deference to interconnection-wide standards developed in the West; and (2) a significant role for states in reliability decisions.

Adopted By The CSG-WEST Executive Committee on July 19, 1999 Assembled In Annual Meeting In Sun Valley, Idaho