FOR IMMEDIATE RELEASE:  Feb. 23, 2004
CONTACT:  David Christy, (916) 353-4436, christy@wapa.gov

 
WESTERN ANNOUNCES SUBCONTROL AREA DECISION

FOLSOM, Calif.—Western Area Power Administration today announced its intent to form a contract-based subcontrol area in northern and central California once its existing contracts with Pacific Gas and Electric Co. expire on Dec. 31, 2004. Under current contracts, PG&E is responsible for providing control area services.

        This final decision becomes effective March 24. Between now and then, Western will continue discussions with the California Independent System Operator and the Sacramento Municipal Utility District about the potential to become a contract-based subcontrol area operator within either organization’s control area.

        As a subcontrol area, Western would manage the physical flow of electricity to customers directly connected to Western’s nearly 1,000 miles of transmission lines in northern California. Western’s decision also calls for the CAISO to remain as the single path operator for the California-Oregon Intertie, a high-voltage transmission connection between California and the Pacific Northwest.

         Western published its proposed decision to implement a contract-based sub-control area for its Sierra Nevada Region on Dec. 2, 2003.  Western stated it would begin talks with the CAISO and SMUD.   

        Besides the agreement for integrated operations, a number of existing transmission contracts between Western and the PG&E also expire on Dec. 31, 2004.  Western will need to make alternate arrangements for meeting its own supplemental power and transmission needs as well as for control area services.

        Western made the final decision to set up a contract-based subcontrol area based on five evaluation criteria: flexibility, certainty, durability, operational transparency and cost-effectiveness.  Western does not intend to form a new control area at this time, but will work to ensure it can fulfill its statutory obligations and contractual responsibilities to its customers.   

        The Federal Register notice announcing the final decision is posted on Western’s Web site.