This is an update of a blog post with the same title from January 20th.
Two articles below describe the Idaho Senate and now House bill allowing "preapproved ratemaking" that will protect Idaho Power from failed investments:
Idaho panel OKs PUC bill; power users still leery
March 4, 2009 3:41 PM ET by John Miller
BOISE, Idaho (AP) - An Idaho Senate panel voted 7-1 Wednesday to give utilities more reassurance they'll be able to recoup billions of dollars for new transmission lines and plants from ratepayers, even if the projects sour.
Big customers of Idaho utilities fear this "preapproved ratemaking," which would allow regulators and utilities to agree to rules governing how to recover such investments well in advance, could unfairly shift risk away from utilities. . .
Regulators have traditionally set cost recovery rates for transmission lines, gas-fired power stations and other projects only after they've been completed. . .
Utilities like Idaho Power Co., the state's largest, have complained it has grown more difficult to attract capital for big projects, in part because ratings agencies and investors fear that regulated utilities won't be able to recover their investments should something go awry.
Kjellander said that could drive up interest rates for the projects, forcing all customers to pay more later.
Under the proposal, if something unforeseen occurs and a utility must halt work on a project that's been preapproved by Idaho regulators, it would still be able to recover its investment in the project. . .
Still, the Industrial Customers of Idaho Power voted unanimously last month to oppose the bill on grounds it's a radical departure from existing ratemaking procedures. . .
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090304&id=9667276
http://www.forbes.com/feeds/ap/2009/03/04/ap6126292.html
Idaho House panel backs regulatory ratemaking plan
March 24, 2009 1:48 PM ET
BOISE, Idaho (AP) - An Idaho House panel unanimously approved a plan to shore up money lenders' confidence that regulated utilities like Idaho Power Co. will be able to recover investments in big transmission or generation projects.
So-called "preapproved ratemaking," modeled after an Iowa law, already passed the Senate and now goes to a House vote.
Big customers of Idaho Power, the state's largest utility, objected, saying it shifts risk to customers. But lawmakers were convinced preapproved ratemaking will help lower future interest costs that will inevitably be borne by ratepayers.
Idaho Power already is planning a $427 million gas power plant near New Plymouth in western Idaho that could take advantage of the new rate setting, if it becomes law.
Regulators support this plan to fix ratemaking rules before a plant is built, not after, as is done now.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090324&id=9724550
