Wyoming - West Transmission Development Study Announced.

CHEYENNE, Wyoming -- The Wyoming Infrastructure Authority (WIA) and National Grid have signed a Memorandum of Understanding (MOU) to jointly conduct a transmission study that will help lay the groundwork for a significant increase in electric transmission capacity between Wyoming and neighboring states to the West.

The Wyoming - West transmission development study will build upon the Rocky Mountain Area Transmission Study (RMATS). RMATS was a consensus planning study conducted by regional industry, governmental, and environmental stakeholders in 2004 that was co-sponsored by the Wyoming and Utah governors. This study set out to identify the necessary additions to the regional transmission system to enable diverse resource development to meet growing energy needs in the western U.S. RMATS recommended that a series of new transmission lines should be constructed from Wyoming to its neighbors, including Utah, Idaho, and markets further west.

Several major projects have been announced and promoted since the RMATS study, including:

--the Frontier Line, which was announced by the Governors of California, Nevada, Utah and Wyoming in April 2005;

--the TOT3 Project, which was announced in September 2005 by WIA, Trans-Elect and the Western Area Power Administration to strengthen the electrical tie between Wyoming and Colorado; and

--TransWest Express, a proposal that seeks to reach Wyoming with transmission lines from northern Arizona through Utah, which recently was announced by Arizona Public Service.

The Wyoming - West study will take a fresh look at the RMATS recommendations in the light of these announcements, with a focus on identifying new transmission that is required within Wyoming and between Wyoming and its neighbors to the west. The study will be jointly funded by National Grid and the WIA. The MOU between National Grid and the WIA also includes provisions for the two parties to continue their relationship on to permitting, financing, construction and operation of new transmission lines identified by the study.

"This is good news for Wyoming and the West," said Wyoming Governor Dave Freudenthal. "Wyoming has an abundance of low-cost natural resources - coal and wind - that will be tapped to meet growing electricity needs across the West if the transmission capacity can be made available," he explained. "The RMATS report called for the private sector to take on these transmission needs, and I am pleased to see a leading independent transmission company teaming up with the Wyoming Infrastructure Authority to move the RMATS recommendations forward."

"We are seeing increasing interest throughout the West in Wyoming as a source of power supply," said Steve Waddington, WIA executive director. "Transmission proposals to enable this energy diversification are blossoming. This public-private partnership with National Grid is a means for studying the Wyoming - West opportunity in a comprehensive manner, to provide an overall blueprint for this build out of needed new capacity," he added.

Paul Halas, National Grid senior vice president of Business Development said, "National Grid welcomes the opportunity to work with the WIA and other parties to complete the Wyoming - West study and help develop a transmission solution that will deliver adequate and affordable electricity to the growing communities in the western U.S."

Formed in 2004 by the State of Wyoming, the WIA's mission is to diversify and expand the state's economy through improvements in Wyoming's electric transmission infrastructure to facilitate the consumption of Wyoming energy. The Authority can participate in planning, financing, constructing, developing, acquiring, maintaining and operating electric transmission facilities and their supporting infrastructure. Legislation provided the WIA with bonding authority, and other powers, to promote transmission development in the state and throughout the region. It also provided the State Treasurer, with the approval of the State Loan and Investment Board, the authority to invest in WIA bonds.

National Grid USA, through the transmission and distribution of electricity and natural gas, serves close to 4 million customers across 29,000 square miles of Massachusetts, New Hampshire, New York and Rhode Island. Its parent company, National Grid plc, is an international energy delivery business with principal activities in the regulated electricity and natural gas industries. The company owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high-pressure gas transmission system in Britain and, through its gas distribution business, delivers gas to over 10 million homes and businesses in Britain. In addition, it has a number of businesses operating in related areas such as wireless infrastructure for broadcast and telecommunications, metering and interconnectors.