"Hello, Everyone -

The purpose of this memo is to keep you all up-to-date on the overall
development program and schedule for RTO West and to follow-up on the
Regional Representatives Group meeting on June 27.

We have heard from many stakeholders about the need to use our time wisely
over the next few months so we can focus on preparing a comprehensive filing
with FERC on December 1.  Specifically, we have heard that too much time
spent on drafting and commenting on an interim filing by August 31 would
drain everyone's resources and deflect attention from the substantive work
on congestion management, pricing, planning and expansion, interreregional
coordination and seams resolution, and the other subjects that will be
addressed in the December 1 filing. As you'll recall,  FERC also set a
December 1 deadline for a status report on seams resolutions, participation
by Canadian entities, a framework for formation of a West-wide RTO, and a
timetable for achieving that end.  We have also heard from members of the
Northwest Congressional delegation that it is important to proceed in a
measured way with RTO West development and to ensure that public entities
and regional leaders are given the opportunity to review and analyze the
elements of the  RTO West filing proposal.

In response to these suggestions, the RTO West filing utilities have agreed
to focus on the December 1 comprehensive filing and to prepare, at most, a
brief and limited interim filing. The content and timing of the interim
filing is still being discussed.  We will develop and circulate a revised
development schedule for meetings and content group activities focused on
the December 1 filing as soon as we can.

In its April 26 Order, FERC stated "In light of Canada's involvement in the
Western marketplace, the Commission supports the efforts to accommodate
Canadian participation in RTO West."  To that end, the filing utilities are
pleased that British Columbia Hydro and Power Authority has joined with them
as a filing utility effective July 10, 2001. In addition, RTO West and
Alberta representatives met recently to discuss avenues for closer
coordination between them over the next few months.

Regarding interregional coordination and seams work, RTO West
representatives continue to work with Desert STAR and California ISO
representatives to define interregional issues and develop solutions on a
more organized basis.  The filing utilities are fully aware of the renewed
emphasis from FERC on achieving a single, coordinated and transparent bulk
power market in each region and the importance FERC attaches to removing
obstacles between the western RTO groups.  The filing utilities intend to
diligently pursue this interregional coordination work over the next few
months so that the December 1 filing will report substantial progress in
seams resolution and achievement of a seamless western power market. FERC's
order issued on July 12 in Docket Number RTO1-35 specifically supports the
filing utilities' current voluntary efforts.

Finally, the first meeting of the RTO West benefit-cost work group occurred
on Tuesday, July 10.  Discussion centered on the scope, elements, and level
of detail of the proposed study.  Over the next several weeks, a draft
Informal Competititve Solicitation will be prepared, reviewed, and revised
by the work group.  It will then be sent to a list of potential consultants
when it is ready and posted on the RTO West website.  Because certain
elements of the filing, particularly pricing and congestion management, are
important to preparation of the benefit-cost study, there will need to be
careful sequencing of the study with the substantive work on these filing
elements.

We would like to thank all of you who commit so much time and energy to the
development of RTO West.  We are well aware of the demands on your time, and
we appreciate the efforts you are all making.  As soon as our schedule is
firmed up, we will send out the date for the next RRG meeting.

- Bud"