![](media/image1.wmf){width="2.5318897637795277in"
height="2.459055118110236in"}August 3, 2004

PLANNING COORDINATION COMMITTEE

> Subject: WECC Maintenance of the SSG-WI Database

At the June PCC meeting we discussed a proposal on transfer of the
maintenance of the SSG-WI Database to WECC. Some PCC members requested
that I circulate the Board resolution and proposal to PCC members for
comment prior to the Board meeting.

As the Board meeting approached, discussions were still continuing
between WECC and SSG-WI on details of the proposal up to shortly before
the Board meeting. It was indicated to me that we did not have a
proposal that was significantly well developed for Board approval.
Consequently, I concluded it would be premature to request comments from
PCC on the Board resolution and proposal.

At the Board meeting, I reported on the discussions at PCC, indicating
PCC's strong support for WECC taking on maintenance of the data. The
Board considered the attached July 16, 2004 proposal, which was the last
draft considered by WECC and SSG-WI, and approved the following motion
from the floor:

"The Board enthusiastically supports WECC taking the database and
managing it. The management will work with the SSG-WI staff on working
out the general principals of the proposal, the delineation of policy
with SSG-WI, cost of new employees, time frame of conclusion of this in
60-days, and bring it back to the board for approval."

In passing this motion, the Board noted two concerns with the proposal.
These concerns were the same issues that WECC and SSG-WI were unable to
reach agreement on prior to the Board meeting. One concern related the
following language on page 6 of the proposal:

"WECC will not duplicate or compete with the functions and
responsibilities of SSG-WI. As a consequence, WECC will not initiate,
without a request from or approval by SSG-WI, commercial expansion
studies of the type associated with SSG-WI PWG. It may perform studies
using the TPS Database for specific individual members as a service to
its members on a fee basis and as approved by the SSG-WI PWG."

The Board was concerned about WECC being bound by decisions of another
organization.

A second concern discussed by the Board related to what would happen to
the database at the end of the three year period.

Also, on a related matter, the Board also acted on a recommendation from
the Governance and Nominating Committee to amend Bylaw 2.1.6.4 to remove
the language "but shall not perform expansion planning studies." The
Board approved the recommendation from GNC, noting that this is not a
decision by WECC to undertake expansion planning studies, only that it
removes the prohibition on such activities. Some Board members felt that
this Bylaw change is necessary to support negotiations with SSG-WI.

I am now requesting that PCC members submit comments on the attached
SSG-WI Proposal to the WECC Board of Directors on WECC Maintenance of
Regional Production Costing "TPS" Database, dated July 16, 2004. The
amount of regional planning currently underway in the west using this
database indicates the importance of maintaining it. The discussions we
had at the June PCC meeting indicated a strong support for WECC
undertaking this activity. The Board has demonstrated its support for
moving forward with this initiative. I request that PCC members respond
to this letter indicating your support for the proposal, comments, and
the importance of concluding the Agreement with SSG-WI.

Please provide me your response and comments, with a copy to Steve
Rueckert of the WECC staff (<steve@wecc.biz>) by August 13, 2004.

Sincerely,

Phil Park

Phil Park

PP:cm

cc: Ron Nunnally, WECC Board Chair

Louise McCarren, WECC

Bob Dintelman, WECC

Steve Rueckert, WECC

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