Sunday, October 17, 2010

HJR-7, and its big implications for Idaho

The Idaho Post Register has a fantastic piece today on this complex initatives that would rewrite how municipal power providers in the state contract for power. Under current rules, municipal power providers (such as Idaho Falls Power), must seek approval from members through an election before entering into long-term contracts. The politics here are fascinating, take this statement from the Chair of the Bonneville County Republicans.

Don Schanz, chairman of the Bonneville County Republican Central Committee, holds a more nuanced view of the proposed amendment. While the Republican Committee has yet to take a position on the proposed amendment, Schanz said it's his personal opinion that Idaho Falls and other power cities should be able to enter power contracts they deem in the best interests of the city.
"That's what you hire bureaucrats for," he said.

As the Post Register explains, long-term contracting capacity is critical for gaining access to low-cost power at opportune times without the expense and time lags of elections. Without the authority, municipal power providers could find themselves at a disadvantage to the states large IOUs that have this privilege and forced to resort to short-term contract positions, which could mean higher rates for Idaho consumers.

Compare this to Montana, where there is no approval process for long-term contracts by members or customers of either IOUs or cooperatives.

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