City boosts mill's power bill

BONNERS FERRY — While the city has sent Idaho Forest Group a bill for $130,000 after retroactively changing its power rates for industrial customers, it doesn’t plan to shut off electricity to the mill if it doesn’t pay by the Dec. 20 due date.

Last week, several IFG employees heard that unless a $130,000 city of Bonners Ferry power bill was paid by Dec. 20 the mill’s power would be shut off.

IFG buys its electricity from the city of Bonners Ferry, which has a generating facility along the Moyie River. In 2009, the mill paid $614,505 for the service.

On Dec. 1, the City Council changed rates for industrial users, increasing Idaho Forest Group’s rate by 13 percent or $80,000 more a year, according to court papers. The mill has approximately 103 full time employees and is the city’s only industrial user.

According to Ford Elsaesser, attorney for the mill, the city did send a bill to the mill in the amount of $130,000. The bill claims the mill was under charged for February 2008 through October 2009 and was delivered on Nov. 20, 2010. 

“It would be absolutely ridiculous and frivolous, if they threaten to shut it off, we will have to go back in the court to ask for an injunction from shutting the power off,” Elsaesser said.

Supervisor for the Moyie mill Jesse Short, said he did in fact receive the bill that said the due date was Dec. 20.  He said it did not state the electricity would be terminated on that date.

“We did not receive notice of termination, only what we heard on the radio that implied at one time or another the power would be shut off,” Short said. “I believe the city has a policy to send out a 10-day termination notice before hand and I don’t think and hope it wont get to that point.”

After hearing the rumors while on a trip to Portland, Ore., Bonners Ferry Mayor Dave Anderson called the Hagadone News Network to say the city has no intention of shutting the power down at the mill.

“This bill is for a true-up of a temporary agreement made between the mill and the city over a year ago, said Anderson. “It  is not the city’s policy to shut off the power at the 30 day mark, we have never done that to any homeowner or business and it is not our intention to do it now.  There is a process and notices have to be sent and time given.”

This adds to the dispute filed by Idaho Forest Group against the City of Bonners Ferry back in February which is scheduled to go to trial in January.

Idaho Forest Group filed suit on Feb. 1 against the city of Bonners Ferry, claiming the amount its lumber mill in Moyie Springs pays the city for electricity is unfair.  Idaho Forest Group claimed it protested the rates set in July 2006 and that the company has attempted unsuccessfully to negotiate a rate dispute with the city.

Idaho Forest Group’s action resulted in the company paying high rates for 2006 and 2007, according to the suit. The city agreed to an interim rate in 2008, but ceased when new rates were adopted in 2009, according to court documents.