Utility Asks Developers To Pay For Power Lines
Developers warn that making them pay for new power lines will only end up costing the home buyers money.
The state Public Utilities Commission on Thursday heard testimony over Idaho Power Co.’s bid to shift its cost for new line installations to developers requesting the electricity.
Idaho Power said the public now shoulders the cost, estimated at a total of up to $30 million each year. But developers argue forcing them to pay would jack up the price of houses, limiting their availability for prospective buyers. They estimate the cost at about $1,200 per house.
“The customer will be the one who gets hit the hardest,” said Darris Ellis, owner of Ellis Construction of Pocatello.
When developers pay, “essentially that’s a burden relief for the general ratepayer,” said Greg Said, Idaho Power rate analyst.
Said admitted that rates will not be lowered if the plan passes, but said it means future rates will not go up from today’s levels.
Developers point out that Idaho Power agreed not to raise rates until the year 2000.
The PUC has heard testimony from Boise developers and plans to make a final decision in August.