Comments on: Hoku On Trickle, Zonda Misses The Bus

By: Gene Fadness

Gene Fadness — Thu, 19 Jul 2012 22:03:10 +0000

Thanks, Zippo. We pay the same increases and hear from understandably frustrated customers every time rates do go up, so we have every reason to carefully review each expense and no reason not to.

By: dog

dog — Thu, 19 Jul 2012 14:44:51 +0000

Dear Guardian, if you don’t support businesses that rely on government subsidy then you don’t support Idaho farmers or companies like Idaho Power who indirectly benefit from government largesse like the Bonneville Power Administration and the Department of Reclamation.

EDITOR NOTE–You left out the BLM grazing, Mining, state water resources for irrigation just to name a few.

By: Zippo

Zippo — Thu, 19 Jul 2012 05:35:35 +0000

Thanks for the reply. I hope you look closely at the expenses they list. With a company that size it is very easy to shift things around as needed to make a case for whatever they need at the moment. IP does seem to be a fairly good outfit overall, but they are always whining for more money even as NG price is very low and lots of hydro around here.

By: Gene Fadness

Gene Fadness — Wed, 18 Jul 2012 20:27:47 +0000

Chicago Sam,
Most of these projects require fairly simple modifications to transmission and distribution networks, sometimes just distribution. Substations are rarely required. The liquidated damage provisions cover the full cost of whatever expense ratepayers may incur.
The length of contracts is one of the issues in our current avoided-cost rate docket.

By: Gene Fadness

Gene Fadness — Wed, 18 Jul 2012 20:23:54 +0000

Zippo,
This is a limited space to try and answer some fairly broad questions but I will do my best.
1) Idaho Power, like almost every other utility in the nation, files annual rate cases to recover expenes they’ve invested. I disagree with the premise of your question that it gets all it asks for. In fact, in the last two rate cases combined, the Commission denied more than 60 percent of the company’s request. We are required by state law to allow them recovery of prudently incurred expense and reasonable rate of return in exchange for their promise to serve every customer in their assigned territory regardless of cost.
2) “That silly rule” you refer to is the federal Public Utility Regulatory Policies Act (PURPA) which requires utilities to buy from qualifying small-power producers at avoided-cost rates set by state commissions. We are in the midst of a multi-year case to address avoided-cost issues. Technical hearings are Aug. 7-9 in Boise.
3) Wholesale, intrastate pipelines are not regulated by the IPUC.

By: chicago sam

chicago sam — Tue, 17 Jul 2012 12:50:33 +0000

Gene–Thanks for your input–I am curious how the liquidated damages provisions work. In some of these cases transmission lines, substations etc have to be millions of dollors. Is Idaho Power guaranteed payback if equipment is not used. Seems unreasonable that the money would just be sitting somewhere just in case a company goes out of buisness.
Insurance coverage?? My reference above to 20 year contracts was to focus on the current contracts given out at fixed rates. It is my opinion rates should be renegotiated every 5 years based on market conditions at that time

By: Zippo

Zippo — Tue, 17 Jul 2012 02:36:51 +0000

Hey G Fadness: Welcome,

Questions: Why does IP keep asking for rate hikes and getting them. Does IPUC watch out for my welfare or that of the monopoly when reviewing the rate hike? Overall I’m very happy with IP, but THEY seem unhappy with the local rates. They bombard us with loads of junk mail pointing to all the screwed up places in this country with higher rates as a reason to raise ours. IP never points to the public infrastructure which makes our rates low.

Also, now that so much of the wind power is generated by corporate owners are you going to change that silly rule which makes IP buy from wind at a super high rate?

How about a new liquids pipeline into Boise to bring energy costs down? Is there some way you can regulated our local pipeline monopoly to push our prices into line with the average?

I’m thinking maybe you can help with some of these basic things we all deal with every day if you have time to cut a sweet deal with long shot new technology company.

By: Gene Fadness

Gene Fadness — Mon, 16 Jul 2012 19:30:16 +0000

Hello, this is Gene Fadness from the Idaho Public Utilities Commission. I just want to make sure it is understood that those 20-year contracts with all independent power providers are null and void if the agreed-upon energy isn’t delivered. They also contain liquidated damages provisions to protect ratepayers in the event of default.

By: Karen Ragland

Karen Ragland — Mon, 16 Jul 2012 19:26:07 +0000

This article just solidifies my belief that politicians are just borderline idiots aka bobble heads that have been cleaned up and sold to us. sigh

By: JJ

JJ — Mon, 16 Jul 2012 19:04:50 +0000

Nothing sounds more like bankruptcy when you can’t afford $100 to renew your domain.

http://www.hokuscientific.com