New approaches will be required. The federal government has acted to open access to the high voltage transmission system, a necessary step in promoting wholesale competition. In 2000, Congress is expected to consider legislation that could expand competition in the wholesale electric power industry. Nearly every Western state is evaluating or has acted on regulatory or legislative proposals that would change the existing structure of the electric power industry. The Western electric power system is increasingly challenged by load growth and expanding power sales across the transmission system.
Recent analyses show an increasing probability of power outages in the next few years.
Western Governors support expanded competition among electricity generators to lower electricity costs to Western consumers. Impediments to increased competition among generators need to be removed. The Governors believe that all segments of the Western industry, including investor-owned utilities, public power, federal power marketing administrations, power marketers and brokers, and independent power producers, should participate in the competitive market, at least at the wholesale level. The decision whether to require or allow participation in a retail competition program, and the form and timing of participation in retail competition should depend upon determinations made at the state and local levels. Western Governors also support further implementation of access to the Western transmission grid on a non-discriminatory basis.