ENERGY: Guarding KEC rate payers

The Press recently ran an Associated Press article about legislation that would extend a sales tax rebate available to those who are developing renewable energy projects in Idaho. Those who support this legislation have negotiated compromise language that supports their interests, but harms Kootenai Electric Cooperative's (KEC) members. This compromise was worked out in Boise without KEC's involvement and we feel that is wrong.

KEC has partnered with Kootenai County in the development of a Landfill Gas to Energy (LGTE) project. The Associated Press reported that KEC intended to use a federal law from 1978 called the Public Utility Regulatory Policies Act (PURPA) to force Avista into purchasing the output from the project at "exorbitant" rates.

The problem Investor Owned Utilities like Avista face is that PURPA has been abused by large wind developers. Recognizing this issue, the Idaho Public Utilities Commission recently issued a temporary ruling limiting the size of wind and solar renewable energy projects having access to PURPA published rates.

The public utilities wanted the state Legislature to include language that permanently excluded most wind and solar projects from their published rates under PURPA. Avista wanted to exclude projects developed by any utility, like "tiny" electric cooperatives, from having access to PURPA published rates.

In the past KEC has enjoyed a good relationship with Avista and would not expect its rate payers to subsidize ours. Our interest in delivering this power to Avista is simply necessitated by power supply commitments KEC had to make 18 months ago, well before the project was committed to. KEC is as interested in protecting our members as Avista is in protecting theirs. We are simply availing ourselves to some much needed certainty provided to developers of renewable resources through PURPA. To suggest otherwise is not being honest.

DOUGLAS A. ELLIOTT

General Manager

Kootenai Electric Cooperative