Here’s a Web site that has been setup by proponents of Gateway West:

http://www.gatewaywestproject.com/

It would seem, at first glance, that this could have an absolutely huge impact on various, big corporate players in our state.

Why? Easy…

Read the various histories that are available in the local libraries about Idaho Power and how Boise corporate interests have aligned themselves politically/economically over the years. One of the most interesting accounts is in the notorious book: “The Boys of Boise” written in 1965 by John Gerassi. Gerassi wrote a chapter called “Public Poverty And Private Power” that went to the heart of his blistering critique of Idaho, in general.

In the 1950s, a major Idaho political debate was all about Hells Canyon and electrical power.

In those days, Idaho Power management/shareholders (and many important Idaho political power brokers) generally opposed creation of a massive federal dam at Hells Canyon. Instead, they supported Idaho Power’s more modest alternative, a private-sector proposal, which called for a much lower dam. And the rest is history. (Idaho Power’s dam was constructed.)

The proposed federal dam would have been much higher. Some federal dam proponents wanted to go even further, creating a New Deal type of “Columbia Valley Authority” for the Pacific Northwest in addition to more BPA power throughout Idaho to boost economic growth. They argued that Idaho’s (Boise’s) corporate club was attempting to block progress and limit/control access of out-of-state industry to local electrical power.

In “The Boys of Boise,” Gerassi quotes F. P. Hendrickson, former head of Monsanto’s Soda Springs, Idaho phosphate operation on page 141.

Hendrickson reportedly alleged that Monsanto — based in St. Louis, Missouri — was bitterly disappointed with its negotiations for electrical power with both Idaho Power and Utah Power and Light. He reportedly claimed that the massive quantities of reasonably-priced electrical power required for a gigantic Monsanto expansion at Soda Springs in Southeast Idaho were virtually impossible to obtain. (Monsanto instead expanded in Tennessee.)

Consequently, Gerassi asserted that Idaho’s economic growth was being controlled by Boise-based corporate interests at the expense of jobs for Idahoans that otherwise might have been created in Idaho by corporations headquartered in other states. Gerassi even claimed that the Simplot company was opposed to BPA power because it might allow Monsanto to setup competing plants.

This “Gateway West” transmission line does raise a lot of interesting economic questions.

Is is possible that Monsanto — frustrated by the lack of power in the 1950s — might gain additional access to enough electrical power to facilitate a major expansion at Soda Springs? The map on the “Gateway West” Web site, at first glance, seems to suggest that Soda Springs and Caribou County might be potential electrical power beneficiaries. Electrical power issues are so complex. I wish we could find a reliable source of information that might help frame the issues.

I wonder if there are any competing power line proposals being made… ?

Thanks for this. I’ll be reading as much as I can find about this in the days ahead.

Great idea, but I bet people like Team Dave and Obama gave the contract to a foreign company? And of course all the studies will cost more than the power line. Plus a green fee to the end user.

PS: I’ve heard the legacy media reporters, the few who live in the State, are pizza drivers on the side.

EDITOR NOTE–only the rich ones drive pizza.

Looks like Rocky Barker did do a small story a few days ago:

http://www.idahostatesman.com/2011/10/05/1827609/obama-proposes-streamlining-permitting.html#storylink=misearch

“The Gateway West Project is estimated to create between 1,100 and 1,200 jobs.”

I wonder if rates will be fairly applied to Idahoans.

According to the Web site of PacifiCorp, this “Gateway West” project is just one component of a much bigger system called “Energy Gateway.” See:

http://www.pacificorp.com/tran/tp/eg.html

So the question that I don’t see answered yet in any of the news articles is whether Idahoans — with rising bills for electricity — will be fairly charged.

The jobs component sounds great; the modernization of the grid sounds great.

But Monsanto’s consultant says:

“If PacifiCorp succeeds in completing the entire Energy Gateway project by 2020, the company will dominate transmission services throughout the western U.S. This circumstance would place shareholders in the enviable position of earning a return on over $6 billion in new rate base as well as providing the ‘highway’ to California and southern Nevada for sale of PacifiCorp’s existing and developing wind projects.”

Monsanto’s consultant continues:

“The reason I say ‘enviable’ is because, unlike unregulated third party developers of new transmission facilities, PacifiCorp is attempting to earn on Energy Gateway immediately by placing the large, initially over-built segments into rate base as each is completed. Private third party developers are not, of course, able to earn on the excess investment prior to the facilities reaching full capacity and coming on line, when they then can charge OATT wheeling tariff rates.”

http://www.puc.idaho.gov/internet/cases/elec/PAC/PACE1007/intervenor//MONSANTO/20101014PESEAU%20DI.PDF

Hmmm.

The complexity of a topic like this just points to a rather gaping weakness in our so-called democracy, in my view. A project of this magnitude. And yet… the vast majority of dumbed down, over-the-air, corporate-owned news, in particular, focuses on the weather. How can ordinary people in society participate and help decide in such a circumstance? Sad.

local broadcast media.. take away weather, and take away sports, and take away repeats of national news. Isn’t a lot left.

PacifiCorp is owned by MidAmerican Energy Holdings in Des Moines, Iowa:

http://www.midamerican.com/aboutus2.aspx

And, finally, MidAmerican Energy Holdings in Des Moines, Iowa is a holding company controlled by Berkshire Hathaway and Mr. Warren Buffett:

http://www.berkshirehathaway.com/subs/sublinks.html

In “The Boys of Boise” chapter called “Public Poverty and Private Power,” author John Gerassi, writing in 1965, computed a simple monthly electrical bill comparison table for the years 1938 to 1963.

Gerassi – who now holds a Ph.D. from the London School of Economics and Political Science—also noted the following:

“Idaho Power Company is not an Idahoan company. It is owned mostly by Middle Atlantic and New England companies—70 percent of the common stock. Only 6 percent of the stock is held by people or firms in the Idaho area. It is a very profitable company, having paid out $6,700,000 in dividends in 1964. It has no interest in providing Idahoans with cheaper service. In fact, its rates are higher than its neighboring equivalents.”

Gerassi then provided the following table:

Idaho Power: $8.60 in 1938 — $9.95 in 1963
Percent change: +15.7

Pacific Power & Light: $8.07 in 1938 — $6.40 in 1963
Percent change: -20.7

Portland General Electric: $8.07 in 1938 — $6.40 in 1963
Percent change: -20.7

Puget Sound Power & Light: $7.95 in 1938 — $6.79 in 1963
Percent change: -14.6

Washington Water Power: $9.15 in 1938 — $7.05 in 1963
Percent change: -23

It would be interesting to verify the information in Gerassi’s table.

In more recent times, we constantly hear that power costs in Idaho are less expensive than power costs in other states.

Or are they?

It depends.

While it’s true that residents in Pacific Coast states such as California, Oregon and Washington in recent times appear to bear significantly higher average monthly electricity bills than do residents in Idaho, I was rather surprised when I decided to do a quick check of the monthly bill comparison table now being published by the U.S. Energy Information Administration here:

http://205.254.135.24/cneaf/electricity/esr/table5.html

This table suggests that residents of Wyoming, Colorado, Utah and New Mexico pay *lower* average monthly residential power bills:

Idaho: $76.01
Wyoming: $73.56 (3.2% less )
Colorado: $68.80 (9.5% less)
Utah: $65.36 (14% less )
New Mexico: $63.24 (16.8% less)

Please check the table here…
http://205.254.135.24/cneaf/electricity/esr/table5.html

…to verify the figures I just typed.

Assuming I’ve got the correct figures, what would explain this?

Granted, the table suggests that significantly lower consumption in Wyoming, Colorado, Utah and New Mexico helps to explain the lower average monthly power bills.

But why?

Are residents in those states living in more green, energy-efficient dwellings?

In addition, Idahoans face new potential rate hikes.

If and when those rate hikes are approved, how will they change Idaho’s comparison to other Rocky Mountain states, in terms of average residential monthly bills?

The monthly bills are certainly higher in U.S. coastal states, but average wages in those coastal states are often significantly higher than average wages in Rocky Mountain states such as Idaho.

Also, the U.S. Energy Information Web site indicates a new table with fresher figures will be available next month. It will be interesting to see what changes have taken place.

One clarification:

The figures in the Gerassi table were said to be “monthly bills for residential consumption of 500 kilowatt-hours.”

Kind of makes one nostalgic to see monthly bills that low!

Without a world war to break the ice and a steady stream of political and corporate nincompoops prioritizing absolutely everything before the American people, it’s going to be a long while before we’ll need a new power line.

http://online.wsj.com/article/SB10001424052970204774604576628981208827422.html?mod=WSJ_hp_LEFTTopStories

Another story with some real “meat” in it:

http://www.capitalpress.com/content/dw-power-hike-010711

Rate increases might begin to be a fact of life for Idaho, the stories suggest:

“The steepest rate increases — 9.6 percent and 9.4 percent — will be paid by Monsanto and Agrium Inc., both of which operate phosphate mining operations near Soda Springs.”

“If fertilizer prices increase as a result, farmers will feel the pinch, Thompson said.”

“Rocky Mountain Power had originally sought rate increases of nearly 20 percent for the phosphate operations.”

“Monsanto’s elemental phosphorus plant at Soda Springs is Rocky Mountain Power’s largest customer.”

“It consumes an average of about 1.4 million megawatts of electricity at an annual cost of more than $42 million, company representatives said in written filings with the utility commission.”

“The plant’s power demand is about the same as residential power demand in Kansas City.”

Wow.