Idaho Power wants to invest in wind power:
Your rates could go up initially, the company says
about a plan that would invest money from selling sulfur dioxide emission
allowances
Jan 3 - McClatchy-Tribune Regional News - Ken Dey The Idaho Statesman,
Boise
Idaho Power Co. wants state regulators to let the company invest in wind
power and sustainable energy instead of using a pollution credit to reduce
rates for its customers.
The company says the change may cost ratepayers more initially, but has the
potential to save money.
The extra cash comes from the sale of sulfur dioxide emission allowances
that Idaho Power doesn't use.
The Environmental Protection Agency regulates the amount of pollution that
can be released from power plants, and it provides utilities with a set
number of allowances to emit a fixed amount of pollutants. But because the
bulk of Idaho Power's generation comes from non-polluting hydropower plants,
the company typically has allowances left over each year.
The EPA lets companies like Idaho Power sell those allowances to companies
that use up their allotment.
In 2006, Idaho Power sold about $69 million in allowances and used 90
percent of the proceeds to help reduce the rates of its Idaho and Oregon
customers during its annual rate adjustment.
Last year, the company sold $19.6 million worth of allowances. After fees
and a portion to its Oregon customers, Idaho Power customers would receive a
credit of $10.1 million when power rates are adjusted in June.
Each year, as part of the annual power cost adjustment, or PCA, Idaho Power
adjusts its rates up or down, based on the amount of water available to
generate electricity and the cost of buying electricity.
Instead of using the emissions credit in the PCA, Idaho Power is suggesting
it could be used to buy a wind power project, which would provide the
company with a source of renewable energy and give the company experience in
how wind projects operate and how they can be integrated into the company's
existing electricity sources.
Another option would be to use the money to buy renewable energy
certificates known as "green tags."
Companies receive a "green tag" for every megawatt of electricity bought
from an approved alternative energy source such as solar, wind or
geothermal.
Green tags are sold through private organizations that market green power
throughout the United States.
They can also be purchased directly from small renewable energy projects.
The company says buying green tags now would better prepare the company if
state or federal renewable energy standards were passed requiring companies
to buy a certain percentage of power from renewable sources.
A proposal to require minimum standards was included in the new federal
energy bill, but was removed before the bill's passage. Some states have put
standards in place, but Idaho hasn't.
If standards are ever enacted, Idaho Power says costs for green power would
likely increase. The company said it could also sell some of the green tags
to other utilities and again give customers a credit on their rates.
Ken Dey: 672-6757 |