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I think you could delete it; its just an icon.

I don't use the environment manager, but its useful for setting up those environment variables that PSSE needs to run from within Python. Kind of like this blog post on running PSSE from inside Python.

If you don't set up the environment variables one of two things will happen:

  1. Python will not be able to locate the psspy library;
  2. PSSE will cause Python to crash when you load a saved case.

Neither is what you want as an engineer :)