Merged Pacific Northwest grid agency proposals unveiled

Seattle, Wa (Platts)--25Oct2005

A group of Pacific Northwest electricity industry participants, including
Bonneville Power Administration representatives, on Tuesday unveiled a plan
hammered out by regional utilities that merges two rival grid agency
proposals.

     The plan would adopt Transmission Improvements Group's near-term
proposals for transmission planning and expansion and an independent market
monitor, BPA sources said. 

     After two years, the region would transition to an independent grid
agency, as proposed by Grid West, that would begin operations in 2008. The
convergence team suggested amendments to Grid West bylaws to make the entity
more agreeable to opponents. 

     BPA said it is "leaning strongly toward convergence" and at a gathering
of regional stakeholders on Friday intends to announce if it backs the new
plan instead of Grid West or the rival TIG proposals. 

     BPA pushed for the convergence of the two plans because the region is
divided over whether to go with Grid West, TIG or any plan.   

     On Nov 1, BPA is to meet with eight other transmission owning utilities
that formed Grid West who will then vote on whether they can live with the
converged deal. This vote is crucial because PacifiCorp and Idaho Power--major
line owners who pushed for Grid West from the beginning--have opposed
convergence.

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