Idaho governor mum on his intentions of signing plant moratorium

Idaho governor mum on his intentions of signing plant moratorium

Washington (Platts)--7Apr2006

The Idaho legislation to impose a two-year moratorium on constructing merchant
pulverized-coal power plants in the state is on Governor Dirk Kempthorne's
desk, but he is being quiet about whether he will sign or veto the
legislation.

Sempra Generation's Idaho coal-fired project was considered the target of H.B.
791. The company said last week it was not going forward with the 600-MW Idaho
Valley Energy project in Jerome County, Idaho, or the 1,200-MW Granite Fox
Power project in Washoe County, Nevada. The projects, which aroused opposition
in both states, would have burned millions of short tons/year of Powder River
Basin and bituminous western coals.

Sempra said at the time that it is not canceling the projects but rather
selling the development rights to someone else. That decision was a business
one, Sempra said, because it has decided to concentrate its capital on its
core midstream gas ventures.

Still, in letters to Kempthorne, Sempra President Michael Niggli made no bones
about the company's opposition to the moratorium.

"We maintain that moratoriums are a bad policy" and the state needs to develop
new generation in the next decade to fill demand, Sempra spokesman Art Larson
told Platts Thursday.

The bill was sent to Kempthorne on Monday after passing the House and Senate.
The governor has five days to sign or veto the legislation while the Idaho
Legislature is in session, according to Jessica Gardetto, legislative
assistant in the house minority office. It's up in the air whether the
legislative session will end this week.

"H.B. 791 was momentarily hung up on a procedural move," Democratic Senate
Minority Leader Clint Stennett told Platts Wednesday. "That is no longer the
case and it has been sent to the governor for signature."

Kempthorne has been in Washington for the past three days preparing for US
Senate confirmation hearings because President Bush has nominated him to be
the next secretary of the interior, Kempthorne spokesman Mike Journee told
Platts Thursday. "He'll take a look [at the bill] when he gets back," Journee
said, refusing to say whether the governor has said he'll veto or sign the
bill.

Stennett, one of the bill's sponsors and a longtime advocate for a moratorium,
promised to override Kempthorne's veto if one occurs.

"The bill passed the Senate with a victorious 30-5 vote," Stennett said.
"Having passed the House 64-5, we have a solid two-thirds majority to override
a veto when this bill heads to the governor's office.

"This session, an array of legislation has been introduced that deals with
energy issues ranging from coal-fired plants to wind energy to bio-diesel and
ethanol fuels," Stennett said. "It has become obvious that we need to revisit
the drawing board and decide what the future of energy policy should look
like" in Idaho.

-- Steve Hooks, steve_hooks@platts.com

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