Idaho Approves Wwp Rate Experiment Plan Benefits Largest Customers

Idaho regulators have approved an experimental Washington Water Power Co. plan that will cut rates to some industrial and commercial customers by more than half.

The low rates - 1.384 cents per kilowatt-hour - will be available to the Spokane utility’s 30 largest customers, including those in Washington, where the rate will be slightly higher.

Eligible companies can buy up to one-third of their power at the low rate until Aug. 31, 1998, when the program expires.

Tom Dukich, WWP rates and tariffs manager, said the experiment will give the utility experience with a deregulated market while customers get cheaper energy and enhanced services.

The program’s attractiveness will depend on rates brokers and other alternative suppliers are quoting, he said.

In Washington, Northwest Alloys, Vaagen Brothers Lumber Co. and Inland Empire Paper Co. are already subscribing to the new program, and Dukich predicted additional signups by the end of the month.

Although most customers will not be able to participate, neither will they have to make up any lost revenues. WWP will absorb the costs, which could run as high as $1 million.

Eventually, industry officials predict home owners, like industry, will have the same ability to chose their electricity supplier as they do their long-distance carrier.

Dukich noted that the power provided to program participants is cheaper in part because it will not be available to customers under normal contracts that guarantee rates for up to 20 years.

, DataTimes