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Idaho Power plant near New Plymouth faces challenge

Environmentalists, businesses see no reason for the PUCto hurry the project near New Plymouth

BY AIMEE NILES - aniles@idahostatesman.com

Copyright: © 2009 Idaho Statesman

Published: 06/04/09


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ADDITIONAL INFORMATION

IDAHO POWER WANTS TO EXPAND AIR-CONDITIONING PROGRAM

The Idaho Public Utilities Commission is considering a conservation program that would allow Idaho Power Co. to remotely power down air-conditioning units in commercial buildings during peak summer hours when power is most costly.

If approved, Idaho Power would install either a direct load-control device or a programmable thermostat in participating buildings. During times of high demand in June, July and August, Idaho Power would begin a "cycling event" during which the participating customers' air-conditioning systems would be remotely shut down for up to four hours a day and 40 hours a week.

Idaho Power proposes that each participant with a direct load control device would receive a $7 credit each month, and customers with the programmable thermostat would receive that free of charge. The cost would be paid from the energy-efficiency rider on customer bills. The program is estimated to cost about $325,500 in 2009.

Currently, the rider is 2.5 percent of customers' bills, but Idaho Power has proposed raising the rider to 4.75 percent. The commercial air-conditioning program would be one of about 20 programs funded by the rider increase.

The PUC is accepting comments through Tuesday. E-mail can be sent by accessing the commission's homepage at www.puc.idaho.gov and clicking on "Comments & Questions." Fill in the case number (IPC-E-09-12) and enter your comments. Comments also can be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to 334-3762.

Two groups sometimes at odds with each other - big industrial power users and environmentalists - have joined forces in objecting to Idaho Power Co.'s request for a natural-gas plant in western Idaho.

The recession and other factors mean Idaho Power doesn't deserve an expedited decision, said the Northwest and Intermountain Power Producers Coalition, an advocate for nonutility, independent power producers like Wolverine Creek Energy Center, a wind farm in eastern Idaho.

The $427 million plant would be built off Interstate 84 south of New Plymouth. Idaho Power says it needs the plant soon to meet the rising demand for electricity as Idaho grows. The economy may be slowing, but consumption of power is not, spokeswoman Echo Campbell said.

Peter Richardson, a lawyer for industrial customers, said if Idaho Power gets everything it wants, it would mean an average 8 percent rate increase.

Ken Miller, energy program director of the Snake River Alliance, an environmental group, said the alliance supports Idaho Power's efforts to use more renewable energy resources and questions the wisdom of a natural gas plant.

"There's a lot of price volatility associated with gas," Miller said. "If gas prices are higher, that cost is going to be passed on to customers."

Idaho Power hopes for a decision by the state sometime this fall, said Gene Fadness, a spokesman for the Idaho Public Utilities Commission. "That's really quick for this sort of project," Fadness said.

Idaho Power must consider future as well as current power needs, Campbell said. Data indicates power production won't keep up with demand without a new plant, said Campbell.

But Miller says Idaho Power is using numbers developed before the recession. "We are asking the commission to delay the decision until new numbers can be gathered," he said. Richardson agrees, saying we need "a better understanding of market conditions and power demand."

Idaho Power supplements its own power with often costly purchases from other companies. If the plant is not built, more power will have to be purchased, and that will translate into much higher rates, hurting economic development, Campbell said.

"Idaho has very low power rates compared to the rest of the country, and that makes Idaho very attractive for businesses," she said.

Aimee Niles: 377-6439

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