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Latest News |
During the 2006 session, the ldaho Legislature passed House Concurrent Resolution No. 62,
directing the Legislative Council Interim Committee on Energy, Environment and Technology
("Committee") to "develop an integrated state energy plan that provides for the state's power
generation needs and protects the health and safety of the citizens of Idaho, and to report back to
the Govemor and the Legislature on its findings and recommendations." In response to this
directive, the Committee reviewed the performance of all of Idaho's energy systems and finds
that, on the whole, they have performed very well. Idaho's citizens and businesses have reaped
tremendous benefits from electricity and natural gas prices that remain some of the lowest in the
in the country. The Committee does not recommend major changes to the structure of Idaho's
energy industry, and it reaffirms in this Energy Plan many of the initiatives already being
undertaken by the Idaho Public Utilities Commission and Idaho utilities.
However, Idaho's resource base of low-cost coal plants and large hydroelectric dams may now
become a source of risk for ldaho's energy fufure. Idaho's reliance on coal-fired power leaves the
state vulnerable to the economic effects of federal regulation of carbon dioxide and mercury
emissions. In addition, much of the hydroelectric capacity that seryes Idaho customers is now or
will soon be undergoing federal relicensing, a process that can result in substantial cost increases.
Development of new energy resources is becoming increasingly costly and challenging and
Idaho's energy demand growth will inevitably result in upward pressure on energy rates.
Finally, the Committee recognizes that Idaho relies on imported fossil fuels for approximately 80
percent of its energy needs. This exposes consumers to geopolitical events such as instability in
the Middle East that drive up the price of crude oil. It also means that most of the $3 billion
dollars that Idahoans spend each year on energy are sent outside the state, providing little
secondary economic benefit.
To address these concerns and to achieve the Committee's energy policy objectives of ensuring a
reliable, low-cost energy supply, protecting the environment, and promoting economic growth,
this Energy Plan recommends increasing investments in energy conservation and in-state
renewable resources. Conservation lowers the energy bills of Idaho households and businesses
and reduces the flow of dollars outside the state. Conservation and renewables diversify the
state's resource base, reducing its dependence on imported fossil fuels and providing insurance
against increasing fuel prices. Conservation and in-state renewables also contribute to Idaho's
economic development by creating local jobs and tax revenuet frequently in rural areas that are
most in need of new economic activity. At the same time, the Committee recognizes that energy
suppliers must continue to have access to conventional energy resources to keep ldaho's energy
costs as low as possible. This Energy Plan offers a number of recommendations aimed at
increasing investment in conservation and in-state renewable resources, while retaining the
benefits of low-cost and reliable energy Idahoans have come to rely upon.