Avista wants wind power purchases put on hold

BOISE – The Idaho Public Utilities Commission later this month will consider a request by the state’s two largest power providers to suspend their obligation to buy excess power from wind producers.

Boise-based Idaho Power initially filed the request and Avista Utilities, headquartered in Spokane, recently joined in the action.

Federal law requires electric companies to buy power produced by renewable energy resources, such as wind or solar power.

According to a rate set by the Public Utility Commission, Idaho Power must pay qualified wind power developers $60 per megawatt-hour, significantly more than the $31.71 per megawatt-hour the company has contracted for through a Montana wind project.

Idaho Power so far has contracted with multiple wind developers for 61.5 megawatts and has applications pending before the commission for another 21.5 megawatts. One megawatt powers about 650 homes for a year.

Idaho Power contends the higher rate paid to small, non-contract wind power producers will eventually be passed through to consumers and will affect the utility’s ability to negotiate with contracted energy suppliers.

But wind power developers claim the commission does not have authority under federal law to suspend an electric utility’s purchase obligations. They also say they would be economically harmed by such a decision because of the substantial investments they have already made.

Idaho Power serves customers in southern Idaho and eastern Oregon, while Avista serves customers in Eastern Washington and North Idaho.

A hearing is set for July 22.