# Presentation: 720402

**Strategic Planning – Operational Drivers **
**Customer Meeting**
**April 24, 2008 **
**Denver, CO**

## Between 2005 and 2007, the number of switching orders has increased throughout the system by approximately 10%

**Switching Orders**

***Between 2005 and 2007, the number of switching orders has increased throughout the system by approximately 10%***

**8,572**

**9,620**

**9,407**

## Between 2005 and 2007, the number of studies for tariff requests has increased by approximately 40% to 50% annually

***Between 2005 and 2007, the number of studies for tariff requests has increased by approximately 40% to 50% annually***

**Number of Studies for Tariff Requests**

## Western’s FTE have remained flat with overtime equivalent FTE increasing to accomplish the expanding workload

***Western’s FTE have remained flat with overtime equivalent FTE increasing to accomplish the expanding workload***

**Western FTE by Functional Category**
**(only includes DSWR, RMR, SNR, UPGR)**

**Standard****FTE**

**Overtime****FTE**

**Combined****FTE**

**Standard****FTE**

**Overtime****FTE**

**Combined****FTE**

**Standard****FTE**

**Overtime****FTE**

**Combined****FTE**

**2005**

**2006**

**2007**

## Employee retirements in mission critical functions are continuing to grow at a significant rate

***Employee retirements in mission critical functions are continuing to grow at a significant rate***

**Mission Critical Retirements**

## The demands for Western to meet construction needs in the region are projected to continue in the future 

***The demands for Western to meet construction ******needs in the region are projected to continue in the future ***

**Western Capital Construction Program ($Millions)**

**$250**

**$200**

**$150**

**$100**

**$50**

**$0**

## Strategies - examples

- Work to protect and maximize the value of the Federal resource.  Ensure reliability and availability of Western’s transmission system.
-   Reduce administrative burdens.
-   Increase transmission queue capabilities to support renewable projects.
-   Operations consolidation – streamline management, facilities and operational systems.

**Operations/Balancing Authority Consolidation Proposal Customer Meeting**
**April 24, 2008 **
**Denver, CO**

## Original Proposals

**Maintain Existing Operations**
- Maintain existing operations.
- Maintain existing operations but take into account additional staffing to ensure regulatory compliance (baseline).
**Operations Consolidation**
- Consolidation of Rocky Mountain Region (RMR) and Desert Southwest Region (DSW) operations reporting to the RMR Regional Manager.
**Balancing Authority Consolidation**
- Consolidate the RMR (WACM), DSW (WALC) and Upper Great Plains West (WAUW) BAs into one BA.

## What Is The Status Of The Proposals?

**Operations Consolidation**
- Western proposes to proceed with this option.
**BA Consolidation**
- Western has decided not to pursue this option.
- Industry changes may result in Western revisiting this proposal in the future.

## What Does Operations Consolidation Mean?

**Operations and transmission services functions of DSW and RMR report to RMR’s Regional Manager.**
**Continue to operate existing BAs.**
**Reduce number of overall desks from ten to nine (DSW will reduce their number from five to four) .**
**Eliminate two backup control centers.**
**No changes to UGP’s operational configuration.**

## Slide 12

## Slide 13

## Slide 14

## Slide 15

## Slide 16

## Next Steps

**Get additional feedback from customers**
- Additional comments due by May 9, 2008.
**Western will evaluate additional comments**
- Expect a decision in late May or June 2008.
**If Western decides to proceed with operations consolidation:**
- Develop re-organization paperwork;
- Union negotiations;
- Obtain approvals;
- Begin implementation Oct 2008.

## Send Comments To Your Regional Manager	

**Brad Warren, CRSP Manager, **_**[Warren@wapa.gov](mailto:Warren@wapa.gov)**_**, 801-524-6372**
**Tyler Carlson, DSW Regional Manager, **_**[Carlson@wapa.gov](mailto:Carlson@wapa.gov)**_**, 602-605-2453**
**Jim Keselburg, RMR Regional Manager, **_**[Keselbrg@wapa.gov](mailto:Keselbrg@wapa.gov)**_**, 970-461-7201**
**Tom Boyko, SNR Regional Manager, **_**[Boyko@wapa.gov](mailto:Boyko@wapa.gov)**_**, 916-353-4418**
**Bob Harris, UGP Regional Manager, **_**[RHarris@wapa.gov](mailto:RHarris@wapa.gov)**_**, 406-247-7405**