Tuesday, January 20, 2009

"Preapproved ratemaking"

I came across several interesting items, including an informative article from late December on the ino.com market information website. A few quotes:

(AP:BOISE, Idaho) Gov. C.L. "Butch" Otter wants to make it cheaper and easier for Idaho Power Co. and other utilities to add billions of dollars of transmission lines and power plants, drawing concern from regulators and large electricity users. . .

"Preapproved ratemaking" will reassure credit analysts and lenders that utilities such as Idaho Power and PacifiCorp will successfully recover the cost of investments such as Gateway West, a 1,200-mile, more than $2 billion power line through Wyoming, Idaho and Oregon scheduled for completion by 2012, (Paul) Kjellander (Otter's energy czar) said. . .

Otter also could issue an executive order requiring state agencies such as the Department of Fish and Game, Transportation Department and Department of Lands to give transmission with "priority attention."

Idaho Power, which backs the legislation, would not comment. . .

Moody's Investors Service and Standard & Poor's have lowered Idaho Power's credit ratings over the last eight years to levels just above those that typically denote speculative, or "junk" debt.

Idaho Power Chief Executive Officer J. LaMont Keen recently complained about the lower credit rating and higher capital costs in the face of needs for infrastructure investment. . .

"This is not something that should be willingly surrendered by the commission in an attempt to assist a transmission or power utility in enhancing its Wall Street credit rating," (PUC Commissioner Jim) Kempton wrote in an e-mail to Kjellander that was obtained by AP through a public records request. "The commission is in unanimous agreement on this point."

Commissioners maintain they've already undertaken steps to help utilities recover investment costs more quickly, including the Idaho Power rate case.

You can read the entire article at http://news.ino.com/headlines/?newsid=689596917790

A companion story in the Idaho Business Review, "Idaho Power rate case gets technical, public hearing," can be found at http://www.idahobusiness.net/archive.htm/2008/12/22/Idaho-Power-rate-case-gets-technical-public-hearing

Plus some interesting quotes from page 3 and 4 of the "Idaho to Oregon Project" planning document from September 7, 2007: http://www.oatioasis.com/IPCO/IPCOdocs/Regional_Planning_Review_Group_Meeting_Notes.pdf
Q: Is there any ROW in place for the 500 kV lines?
A: We are working on the ROW now.

Q: Is Sand Hollow part of the Treasure Valley 500 kV loop?
A: Yes. It will start as a series capacitor and reactor station. Eventually, 500 kV will be built across the northern part of the Treasure Valley to fill out the loop.