San Francisco (Platts)--11Jun2007

Governors of the Western US states have issued a broad resolution staking
out their position on a federal renewable portfolio standard.

     At the Western Governors' Association's annual meeting in South Dakota,
the trade group over the weekend said utilities should be able to recover the
"prudently-incurred costs" associated with meeting a federal RPS. 

     It also is important, however, that a federal RPS protect consumers from
"significant and unexpected rate increases" by including a cost cap or other
mechanism that ensures that consumers are not unreasonably affected by new
investments in renewable resources, WGA said.

     Any federal RPS should consider the availability of transmission and the
difference in impact for large investor-owned utilities and smaller municipal
utilities, the group added.

     The WGA said it will "advise Congress that, if it adopts a federal
renewable portfolio standard, it should not limit any state's ability to
develop the most advantageous mix of clean energy resources." The resolution
specified that no one required to meet a federal RPS should be exempted from
meeting state standards.

     WGA also directed its staff to develop a report outlining how existing
hydropower facilities and small hydro potential can be more effectively used.
In calling for the study, the group noted that nearly 18% of the electricity
in the region comes from hydropower.

		--Lisa Weinzimer, lisa_weinzimer@platts.com