No silver bullet for energy supply: Idaho Power explores nuclear, 'seasonal' coal


Apr 29 - Knight Ridder/Tribune Business News - Michelle Dunlop The Times-News, Twin Falls, Idaho,
 
    When it comes to meeting Idaho's energy needs, there's no simple solution.

    Each source of power generation comes with its unique set of benefits and disadvantages. And, what looks good today might not look so good tomorrow.

    "There's no silver bullet for generation projects," said Randy Lobb, an administrator with the Idaho Public Utilities Commission.

    Lobb and Idaho Power Co.'s Karl Bokenkamp recently addressed about 50 Magic Valley residents concerned about the power company's and the state's long-term plan for keeping up with the growing demand for electricity in Idaho. The discussion was sponsored by the Twin Falls Area Chamber of Commerce. The two agreed that constant changes in the power market mean that no resource -- not even coal or nuclear power -- is off the table.

    In fact, Idaho Power's newest outlook includes the addition of nuclear power into its resource mix by the year 2022, Bokenkamp said. The company updates its Integrated Resource Plan every two years and files it for review with the PUC. The 2006 plan should be available in the next few months.

    In the past, Idaho Power's resource plans considered consumers' needs over the coming decade. In its 2006 plan, the company examines the supply and demand picture over the next 20 years -- extending its outlook because of the amount of time required to site and license projects, Bokenkamp said.

    "Idaho Power has a significant need for additional energy resources over the next 10 to 20 years," Bokenkamp said. "We've had some extra capacity in the system and we've used it up."

    Idaho Power sees its greatest demands for power during summer months when customers crank up the air conditioning and farmers turn on the pumps for irrigation. Bokenkamp says that the power company is looking at meeting those summer needs by using coal plants for power seasonally.

    In the past, the commission expressed concern that Idaho Power relies too heavily on its natural gas plants to meet peak energy demands in the summer, Lobb said. While natural gas plants are easy for the company to build, the unstable cost of natural gas gives the commissioners reason to worry.

    "We look out for the ratepayer," Lobb said.

    Renewables play a role in the power company's energy picture. Since the 2004 plan was released, Idaho Power received a significant number of proposals for small wind projects. Last year, Idaho Power sought and was granted a moratorium from the PUC on its obligation to buy power from such projects. The company should be wrapping up a study on integrating energy from small wind into its system in the next few months, Bokenkamp said.

    The Legislature may provide some guidance when its interim committee finishes updating the state's energy plan. But, its two-year moratorium on building coal-fired power plants in the state had no impact on how either the commission or Idaho Power do business, the two said.

    "As long as people keep turning on the lights and air conditioning and blowdryers, we'll need to keep building resources," Bokenkamp said.

    Times-News reporter Michelle Dunlop can be reached at 735-3237 or by e-mail at mdunlop@magicvalley.com .