Monday, March 23, 2009

Local Need or Regional Revenue?

We visited with Greg Walden, U.S. Representative for Eastern Oregon, before the regular Chamber of Commerce session Saturday morning in Ontario. Walden answered questions on federal energy legislation, as well as discussing with us why IPCo is so devoted to fast-tracking its B2H transmission line, and why its public relations division is trying to convince us that these lines will benefit us locally, the answer to which may be linked with its complete lack of interest in crossing public lands at all.

"What I've tried to do is convey from our office what we've heard from all of you," Congressman Walden said, acknowledging all the letters his office has received from Malheur County residents. "We've kept pressure on (Idaho Power)."

His conclusion about the B2H line as a purveyor of regional electrical power: "That would be my message. It's for a public purpose. We have public land, let's look there first."

Local need?
What is apparent is that Idaho Power is presenting this B2H line as a local benefit for our hospitals and schools. It originally tied the concept of Boardman to Hemingway to an electrical loop around the Treasure Valley, two projects it has now agreed to separate.

This perhaps because only a small percentage of the power on the B2H 500kV line would be imported into the Treasure Valley, including the miniscule portion that would come to Malheur County.

As far as IPCo's planned 500 kV Treasure Valley (TVEP) loop, the economic downturn is adversely affecting fast track "need" when it comes to current transmission capacity, not to mention overstated projections of ever-increasing numbers of residential customers.

Regional revenue
The real revenue would come from the payment of "wheeling charges" and construction costs, etc. from other utility companies wanting to use the B2H line right of way, in effect, as a transmission toll road. In this case, private landowners would be more useful as utility easements than paying customers.

This local/regional issue may also have something to do with who pays and who benefits more: the ratepayer, or the shareholder. Watch for a future blog post on this subject.