PUC limits power sales to California Idaho can't afford to draw down reservoirs, order says

By Bill Roberts The Idaho Statesman

-------------------------------------------------------------------------------- Idaho Statesman file photo If sales of hydroelectric power to California went through, Arrowrock as well as other Idaho reservoirs would be drawn down to run water through downstream hydroelectric generators. The Idaho Public Utilities Commission on Friday issued an emergency order preventing the state's utilities from drawing down reservoirs to furnish hydroelectric power to energy-starved California.

The action followed a Dec. 14 order by U.S. Secretary of Energy Bill Richardson that power companies throughout the West be required to sell excess energy to California, where cold weather and huge power demands are straining the state's ability to meet electricity needs.

The PUC order prevents sales of hydroelectric power anywhere outside the system of three utility companies: Idaho Power in southwest Idaho, Avista in northern Idaho and PacifiCorp in eastern Idaho.

Power other than hydro is not affected by the order.

Idaho utilities have not yet been asked to furnish hydroelectric power in the California crisis. PUC Commissioner Paul Kjellander said the emergency order was a "preemptive" move against a "wrongheaded" federal policy.

U.S. Energy Department officials were not available for comment Friday.

Commissioners sought to protect Idaho's water-based electric system -- which supplies the needs of two-thirds of the state's power customers -- because water projections for the year are 25 percent to 30 percent below normal, Kjellander said.

The PUC acted under a provision that allows it to declare an emergency and adopt orders without public hearings, Kjellander said.

"The emergency is our low water and someone forcing us to sell power," he said.

If Idaho were required to use hydroelectric resources to aid California now, it could lead to critical power shortages or higher electric bills later if state utilities were forced to purchase power on the open market.

During December, Idaho utilities typically buy power on the open market to help meet high energy needs.

"You can't run the reservoirs dry and expect water to reappear," Kjellander said. "That water is our power. It's our only defense against buying power in a volatile marketplace."

The PUC also sought to keep Idaho power at home out of concern that California may not be able to pay for the energy help it gets. Financially strapped energy companies in California are paying prices for energy far above what they can charge customers, Kjellander said.

"This cost vs. revenue imbalance increases the financial risk to suppliers," the PUC order said.

The PUC's order brought praise from Idaho Power and Idaho's representatives on the Northwest Power Planning Council.

"We agree with it," said Russ Jones, an Idaho Power spokesman. "If we had to send our resources to California, that could be harmful to our customers."

While Idaho utilities have in the past sold power to California, the low amount of water in Idaho reservoirs and the high energy demands by customers in December make helping California difficult, said Todd Maddock, an outgoing Idaho representative on the Northwest Power Planning Council. "It makes a lot of sense that the Public Utilities Commission has sent this message," he said.

The PUC's decision came as U.S. Sen. Larry Craig, R-Idaho, blasted Richardson and California on Friday for "irresponsible" energy policies.

In a letter to Richardson, Craig complained the federal orders were issued without consultation with Northwest states or utilities.

"These orders indicate a severe lack of understanding of the current energy situation in the Northwest and its unique hydropower operation," Craig wrote.

He also criticized California for keeping three power plants idle out of environmental concerns and not enforcing stringent conservation measures to deal with its shortages.

Craig's letter follows another written by Gov. Dirk Kempthorne on Thursday telling Richardson that water stored behind Idaho dams shouldn't be seen merely as a potential power supply.

"Water flows in the state are used for irrigation, fisheries and other recreational activities, as well as the production of hydropower," Kempthorne said.

http://www.idahostatesman.com/news/daily/20001223/LocalNews/65967.shtml

-- Martin Thompson (mthom1927@aol.com), December 23, 2000