HJR 7 is critically-needed amendment

For the past four years the Idaho Consumer-Owned Utilities Association, the statewide association representing all of Idaho’s public power utilities - rural electric cooperatives and city-owned electrical utilities - has worked to update Idaho’s Constitution to codify the way that city-owned electrical utilities have entered into wholesale power supply agreements for over fifty years. In 2010, the Idaho Legislature passed House Joint Resolution 7 (HJR 7) in order to make this critical constitutional update. Now it must receive a state-wide majority vote on the Nov. 2 ballot.

Eleven Idaho cities purchase wholesale power from the Bonneville Power Administration (BPA) and other suppliers under multi-year contracts. Energy costs vary widely depending upon supply and demand.

HJR 7 clarifies that a city owning an electric system may enter into contracts with BPA and other suppliers for the purchase of wholesale electricity without voter approval, helping to ensure that its citizens have low-cost and stable electric utility rates.  

These power costs are payable solely from the revenues derived from the electric system--- not secured by the taxing power of the city or state.

The city-owned utilities need the same authority as cooperatives in order to provide stable electric rates to their consumers.  Without passage of HJR 7, timely negotiations of power contracts will be restricted and city-owned utilities may be forced to purchase power on a short term basis.  Consumers would then be exposed to volatile prices, and the availability of power may be affected in tight markets.

HJR 7 would allow a city owning an electric system to upgrade and modernize electricity-related facilities responsibly and to issue revenue bonds, with the approval of a majority of voters, in order to finance investment in electric generation, transmission and distribution infrastructure.

Revenue bonds must be payable solely from the revenues derived from the electric system and are not secured by the taxing power of the city or state.

Vote yes on HJR 7 so that power cities can continue to provide low-cost, stable electric rates, keeping power affordable-growing the economy-and attracting businesses to our state.

Orin LaRitchie

Board president

Northern Lights

Electric Cooperative