2012_idaho_energy_plan_final_2.pdf

2012
Idaho Legislature Energy, Environment and
Technology Interim Committee
This plan was approved by the Energy,
Environment and Technology Interim
Committee on January 10, 2012, and was
formally adopted by the Idaho Legislature
on March 6, 2012.
IDAHO ENERGY PLAN

2012 Idaho Energy Plan

January 10, 2012

This plan was formally adopted by the Idaho Legislature on March 6, 2012

Prepared by the Idaho Legislative Council’s Interim Committee on Energy, Environment and
Technology with the assistance of the Idaho Strategic Energy Alliance and Public Comments

2012 Idaho Energy Plan 2
Submittal Letter
To: The Idaho Legislature

The Interim Committee on Energy, Environment and Technology (‚Committee‛) respectfully
submits this 2012 Idaho Energy Plan in compliance with HCR 013 passed during the 2007
Legislative session of the Idaho Legislature. This legislation adopted the State Energy Plan
written by the Committee in response to HCR 062 passed during the 2006 session and required
that the Legislature update the plan at a minimum of once every five years.1 The Committee
worked in partnership with the Idaho Strategic Energy Alliance, (ISEA) comprised of nearly 200
volunteers from state, local, and federal interests as well as profit and non-profit private sectors.
Governor Otter created the ISEA to allow a broad range of related stakeholders to work together
to identify and analyze options, opportunities and risks associated with advanced energy
production technologies, energy efficiency and conservation, and energy business in the state. In
addition, the Committee provided opportunities for citizens to comment on the Plan. The
Committee members, members of the ISEA, and other public stakeholders worked diligently to
create the policy basis for necessary debate as our energy opportunities evolve.

The policy guidance and recommendations of this Energy Plan are based on a factual
understanding and assessment of present energy markets, technologies, and systems. Idaho’s
existing energy resource base has resulted in some of the lowest electricity and natural gas prices
in the nation, providing enormous benefit to Idaho consumers. However, new energy resources
are becoming increasingly costly, and there is considerable policy, technology, and resource
uncertainty in national energy markets in general. These risks will influence options and
opportunities for Idaho’s citizens and businesses. Given these realities, the Committee found that
increasing focus on secure, stable and cost-effective energy supply heightens the need for
outreach to create a broad and comprehensive base of knowledge concerning energy issues and
opportunities, and a concerted effort between government and private sectors to capture energy-
related economic development opportunities is critical in reaching our stated energy objectives.
At the same time, our policy guidance takes steps to ensure that energy suppliers will continue to
have access to conventional energy resources to keep our energy costs as low as possible while
achieving environmental and economic objectives. This represents, we believe, a pragmatic,
common-sense approach to preserving the advantages Idahoans have enjoyed over the years
while better positioning the state to meet the challenges of the future.

Energy issues are a foundational part of our lives, and will continue to increase in
importance, touching almost every aspect of our lives, and for which our state has a great deal of
regulatory responsibility. We strongly recommend that the Legislature and other state policy-
makers maintain vigilant oversight of the implementation of this Energy Plan and stay abreast of
energy issues by frequently revisiting these recommendations to ensure that they continue to
advance Idaho’s interests.

Respectfully submitted,
Senator Curt McKenzie Representative George Eskridge
Interim Committee Co-Chair Interim Committee Co-Chair

1 http://legislature.idaho.gov/legislation/2007/HCR013.html. Note that HCR 062 (2006 session) required the
Interim Committee to write the Idaho Energy Plan while HCR 013 (2007 session) adopted the plan written
by the IC as the State Energy Plan and also required that it be updated a minimum of once every five years

2012 Idaho Energy Plan 3
Committee Membership
LEGISLATIVE MEMBERS OF ENERGY, ENVIRONMENT AND TECHNOLOGY INTERIM
COMMITTEE
Sen. Curt McKenzie, Co-chair Rep. George Eskridge, Co-chair
Sen. Patti Anne Lodge Rep. Maxine Bell
Sen. Russell Fulcher Rep. Bert Stevenson
Sen. Steve Bair Rep. Eric Anderson
Sen. John Tippets Rep. Jeff Thompson
Sen. Elliot Werk Rep. Reed DeMordaunt
Sen. Dan Schmidt Rep. Wendy Jaquet
Rep. Brian Cronin (Ad Hoc)

2012 Idaho Energy Plan 4
Table of Contents

Submittal Letter ........................................................................................................................................... 2
Committee Membership ............................................................................................................................. 3
Executive Summary .................................................................................................................................... 7
Energy Plan Objectives ............................................................................................................................... 8
Recommended Policies and Actions ......................................................................................................... 8
1. Introduction, Background and Context ...............................................................................................15
1.1. Introduction ..................................................................................................................................15
1.2. Policy Context for 2012 Idaho Energy Plan ..............................................................................18
1.3. Process Used by the Committee to Develop the 2012 Idaho Energy Plan............................18
1.4. Energy Plan Findings ...................................................................................................................19
1.4.1. Energy Plan Objectives ......................................................................................................19
1.4.2. Accomplishments Since 2007 ............................................................................................19
1.4.3. Recommended Policies and Actions ................................................................................21
1.4.4. Timeline for Implementing the Energy Plan Recommendations ................................24
2. Idaho’s Energy Status .........................................................................................................................24
2.1. Overview .......................................................................................................................................24
2.2. Idaho Utilities and Energy Systems ...........................................................................................28
2.2.1. Electricity .............................................................................................................................28
2.2.2. Natural Gas .........................................................................................................................36
2.2.3. Petroleum and Transportation Fuels ...............................................................................40
2.3. Idaho Resources ............................................................................................................................40
2.3.1. Fossil Fuels ..........................................................................................................................40
2.3.2. Hydroelectricity ..................................................................................................................42
2.3.3. Wind .....................................................................................................................................42
2.3.4. Geothermal ..........................................................................................................................43
2.3.5. Bioenergy .............................................................................................................................44
2.3.6. Nuclear.................................................................................................................................46
2.3.7. Solar ......................................................................................................................................48
2.3.8. Hybridization ......................................................................................................................49
2.3.9. Conservation, Energy Efficiency, and Demand Response............................................49
2.3.10. Energy Resource ‚Lessons Learned‛ .............................................................................53
2.4. Historical Performance in Key Areas ........................................................................................55
2.4.1. Energy Rates Compared to Other States .........................................................................55
2.4.2. Sources of Idaho’s Energy .................................................................................................57
2.4.3. Energy Intensity..................................................................................................................60
2.4.4. Household Energy Bills .....................................................................................................61
2.4.5. Historical Investments in Idaho Renewable Resources ................................................63
2.4.6. Historical Investments in Energy Efficiency and Conservation ..................................64
2.4.7. Historical Investments in Fossil Fuel Based Electrical Generation ..............................69
2.5. Energy Responsibilities in Idaho State Government ...............................................................70
2.5.1. Idaho Public Utilities Commission ..................................................................................70
2.5.2. Idaho Office of Energy Resources ....................................................................................71
2.5.3. Northwest Power and Conservation Council ................................................................72
2.5.4. Idaho Energy Resources Authority ..................................................................................72
2.5.5. Idaho Oil and Gas Conservation Commission ...............................................................72

2012 Idaho Energy Plan 5
3. Idaho’s Future Energy Supply ...........................................................................................................73
3.1. Overview .......................................................................................................................................73
3.2. Summary of Electric Utility Integrated Resource Plans ..........................................................74
3.2.1. Conventional Resources ....................................................................................................77
3.2.2. Renewable Resources .........................................................................................................78
3.2.3. Electricity Fuel Mix ............................................................................................................78
3.2.4. New Resource Additions ..................................................................................................78
3.2.5. New Resource Costs ..........................................................................................................79
3.2.6. Transmission Planning ......................................................................................................81
3.2.7. Conservation and Energy Efficiency Programs .............................................................82
3.3. Natural Gas Supply ......................................................................................................................84
3.4. Petroleum and Transportation Fuels Supply ...........................................................................85
3.5. Energy Efficiency and Conservation..........................................................................................88
3.6. Energy Technology Trends .........................................................................................................89
3.6.1. Nuclear Technology Look-Ahead ....................................................................................90
3.6.2. Clean Coal Technology ......................................................................................................91
3.6.3. Energy Storage Technologies and Approaches ..............................................................91
3.6.4. Distributed Energy Systems .............................................................................................93
3.6.5. Unconventional Fossil Energy Extraction .......................................................................94
3.6.6. Transportation ....................................................................................................................94
3.6.7. Bioenergy .............................................................................................................................95
3.6.8. Energy Efficiency Trends ..................................................................................................97
3.6.9. Other Potential Energy Technologies ..............................................................................99
3.7. Areas Where Action is Recommended ......................................................................................99
3.7.1. Energy Conservation and Direct Use of Natural Gas .................................................100
3.7.2. Continued Development of In-State Renewable Resources .......................................100
3.7.3. Environmental Impacts and Carbon Regulation .........................................................102
3.7.4. Energy Facility Siting .......................................................................................................103
3.7.5. Regional Energy Engagement and Partnership ...........................................................104
4. Energy and Economic Development in Idaho ..................................................................................105
4.1. Updates from the 2007 Plan ......................................................................................................105
4.2. Idaho’s Economic Priorities ......................................................................................................105
4.3. Energy and Economic Development .......................................................................................107
5. Energy Outreach and Education ........................................................................................................109
5.1. Overview .....................................................................................................................................109
5.2. Informing the Public and Policymakers ..................................................................................109
5.3. Educating an Energy Workforce ..............................................................................................112
6. Recommended Policies and Actions ..................................................................................................114
6.1. Overview .....................................................................................................................................114
6.2. Electricity .....................................................................................................................................115
6.3. Natural Gas .................................................................................................................................121
6.4. Petroleum and Transportation Fuels .......................................................................................122
6.5. Conservation and Energy Efficiency........................................................................................124
6.6. Energy Facility Siting .................................................................................................................128
6.7. Economic Development .............................................................................................................129
6.8. Energy Outreach and Education ..............................................................................................129
Minority Report ........................................................................................................................................131

2012 Idaho Energy Plan 6
Appendix A. List of Idaho Electric and Natural Gas Utilities ........................................................... A-1
Appendix B. Definitions .......................................................................................................................... B-1
Appendix C. References ......................................................................................................................... C-1

List of Tables
Table 1.1. Facts About Energy in Idaho ...................................................................................................17
Table 1.2. Number of Recommended Policies and Actions in the 2007 Idaho Energy Plan ............20
Table 2.1. Idaho's Current Energy Efficiency Incentives .......................................................................51
Table 2.2. Idaho's Current Energy Efficiency Related Regulations ......................................................51
Table 2.3. Average Household Energy Bill in Idaho, 2009 ....................................................................62
Table 3.1. Planned Investments in Electric Generating Facilities by Idaho Investor-Owned
Utilities, 2012-2020 ....................................................................................................................79
Table 0.1. Idaho Electric Utilities in 2009 .............................................................................................. A-1
Table 0.2. Idaho Natural Gas Utilities in 2009 ..................................................................................... A-1

List of Figures
Figure 2.1. Gasoline Prices versus Consumer Price Index ...................................................................25
Figure 2.2. Electricity Prices versus Consumer Price Index .................................................................26
Figure 2.3. Energy Production and Consumption ................................................................................27
Figure 2.4. Idaho Energy Resources ........................................................................................................27
Figure 2.5. Statewide Average Electricity Price to Consumers ...........................................................29
Figure 2.6. Service Territories of Idaho's Investor Owned Utilities ....................................................33
Figure 2.7. Service Territories of Idaho's Municipal and Cooperative Utilities ................................34
Figure 2.8. Western U.S. Interstate Natural Gas Pipeline System and Natural Gas Service
Territories ...............................................................................................................................39
Figure 2.9. Transportation Fuel Pipelines and Refineries Serving Idaho ..........................................40
Figure 2.10. Idaho’s Residential Natural Gas Prices Compared to Other States in 2009 .................56
Figure 2.11. Idaho’s 2010 Retail Gasoline Prices Compared to Other States .....................................56
Figure 2.12. Idaho’s Average Electricity Rates Compared to Other States for 2009 .........................57
Figure 2.13. Sources of Energy Consumed in Idaho in 2009 ................................................................58
Figure 2.14. Idaho’s 2009 Electricity Fuel Mix .......................................................................................58
Figure 2.15. Idaho’s 2010 Electricity Energy Sources ............................................................................60
Figure 2.16. Idaho’s Energy Intensity as a Share of the State Economy .............................................61
Figure 2.17. Idaho's Average Household Energy Burden Compared to Other States in 2009
(including Transportation Fuel) ..........................................................................................62
Figure 2.18. PURPA Generation in Idaho, 1981-2013 ...........................................................................64
Figure 2.19. Electric Utility Conservation Achievements since 2004 by Public Utilities in Idaho,
not including Market Transformation (NEEA) Savings ................................................65
Figure 2.20. Electric Utility Conservation Achievements from 2000 – 2009 as a Share of 2009
Retail Electricity Sales ........................................................................................................69
Figure 3.1. Electric Investor owned Utility Planned Additions Through 2020 (aMW) ....................79
Figure 3.2. Cost of Existing and New Supply-Side Resources ............................................................80
Figure 3.3. 30-Year Levelized Capital Cost of Peak-Hour Capacity ...................................................81

2012 Idaho Energy Plan 7
Executive Summary
In 2007, the Idaho Legislature’s Interim Committee on Energy, Environment and Technology
(‚Committee‛) submitted for consideration to the Idaho Governor and Legislature the first
integrated energy plan (‚2007 Plan‛), with an accompanying Minority Report. This plan was
adopted by the Legislature and Governor. As part of the 2007 Plan, the Committee recommended
(and HCR 013 [First Regular Session 2007] required) that the Legislature revisit the Idaho Energy
Plan every five years in an effort to assure the facts and recommendations contained in the Plan
continue to reflect the best interests of Idaho businesses and citizens. This 2012 update to the 2007
Plan is intended to accomplish this goal.

As in 2007, today the Committee finds that Idaho citizens and businesses continue to benefit from
stable and secure access to affordable energy (e.g., electricity, fuels for transportation, and space
and process heat). Additionally, since 2007 Idaho energy stakeholders have made substantial
progress in integrating in-state renewable energy in our energy networks, and have made notable
achievements in the area of energy efficiency, both areas of strategic focus called out in the 2007
Plan.

Looking to the future, we see that even with significant energy efficiency and conservation
measures, energy consumption in Idaho is expected to increase substantially as our population
increases and economic activity increases. Meanwhile we see global, national and regional energy
market landscapes characterized by uncertainty and change. We recognize that most of the
energy that we consume in the state (approximately 70%)2 is produced outside Idaho’s border,
creating a degree of vulnerability from policy decisions made in other states and countries and
therefore outside of our control; we recognize opportunities and risks afforded by rapid advances
in energy generation, transmission and use technologies; and we recognize the risks and
opportunities associated with siting, licensing, and environmental impacts related to our energy
systems. These are formidable challenges that will impact energy options, choices, costs, and
opportunities in Idaho.

With this recognition, this 2012 Idaho Energy Plan re-emphasizes the core objectives of the 2007
energy plan – to set the policy framework that will help enable a secure, reliable, affordable
energy supply network while protecting public health and safety and enhancing economic
competitiveness, and establish the process by which sound data and debate is regularly engaged
to help Idaho stakeholders respond to energy challenges and opportunities.

Our focus is centered on five objectives of Idaho’s energy future: (1) Ensure a secure, reliable and
stable energy system for the citizens and businesses of Idaho; (2) Maintain Idaho’s low-cost
energy supply and ensure access to affordable energy for all Idahoans; (3) Protect Idaho’s public
health, safety, and natural environment and conserve Idaho’s natural resources; (4) Promote
sustainable economic growth, job creation, and rural economic development; and (5) Provide the
means for Idaho’s energy Policies and Actions to adapt to changing circumstances. In the
following pages, the Committee provides data to establish a common basis for policy direction;
provides an assessment of options and opportunities, and describes risks and lessons learned that

2 Energy Information Administration SEDS, 2009 State Energy Data System Idaho (139.9 TBTUs production, 509 TBTUs
consumption)

2012 Idaho Energy Plan 8
can guide policy debate and decisions; provides a look-ahead at technology and policy issues that
have the potential to significantly impact our energy well-being; and offers policy guidance and
implementation processes that will help ensure an ongoing, structured, informed, and productive
public discourse on our energy future.

Significant findings and recommendations include a continued desire to integrate in-state
renewable energy, particularly renewable electric generation, in balance with economic and
systems stability considerations; continued aggressive pursuit of energy efficiency mechanisms;
development of mechanisms to assist local authorities in energy facility siting decisions;
increased direct use of natural gas where economically beneficial; increased focus on pursuing
options and opportunities related to transportation fuels and systems (including end-use
conservation); enhanced partnerships between government and non-governmental stakeholders
including congressional representatives to focus and accelerate economic development activities
related to the energy sector; and enhanced outreach and dialogue regarding energy-related
options and opportunities for Idaho, both in the State and regionally. For implementation, we
recommend that this Plan be assessed and maintained yearly with the assistance of responsible
State agencies and their stakeholder groups.

Energy Plan Objectives
1. Ensure a secure, reliable and stable energy system for the citizens and businesses of
Idaho.
2. Maintain Idaho’s low-cost energy supply and ensure access to affordable energy for
all Idahoans.
3. Protect Idaho’s public health, safety and natural environment and conserve Idaho’s
natural resources.
4. Promote sustainable economic growth, job creation, and rural economic
development.
5. Provide the means for Idaho’s energy Policies and Actions to adapt to changing
circumstances.

Recommended Policies and Actions
Electricity
RESOURCES
Policies
1. The State of Idaho should enable robust development of a broad range of cost-effective
energy efficiency and power generation resources within environmentally sound
parameters.
2. Align legislative policies, regulatory policies, and state agency activity to consistently
reinforce and support state objectives regarding energy efficiency, energy production,
and delivery.

2012 Idaho Energy Plan 9

3. When acquiring resources, Idaho and Idaho utilities should give priority to cost-effective
and prudent: (1) conservation, energy efficiency, and demand response; and (2)
renewable resources, recognizing that these alone will not fulfill Idaho’s growing energy
requirements and that these resources play a role in addition to conventional resources in
providing for Idaho’s energy needs.
4. Encourage the development of customer-owned and community-owned renewable
energy and combined heat and power facilities that meet the Energy Plan objectives of
the State of Idaho.
Actions
E-1. Idaho utilities should continue to acquire resources that are reliable, affordable,
cost-effective, and environmentally sound to meet their customers’ short and
long-term electricity needs.
E-2. Idaho investor-owned electric utilities should continue to conduct formal
Integrated Resource Planning or the individual board accepted equivalent for
public utilities to assess the relevant attributes of a diverse set of supply-side and
demand-side resource options and to continue to provide an opportunity for
public input into utility resource decisions.
E-3. The Idaho Public Utilities Commission (PUC) and Idaho’s municipal councils
and cooperative utility boards should ensure that their orders and actions are
consistent with the policies and objectives listed in the Idaho Energy Plan.
E-4. Idaho’s electric utilities should continue evaluating transmission as a resource
option in resource planning and should continue participating in the
development of local, sub-regional and regional, national, and international
transmission plans to construct transmission facilities that are needed to provide
reliable, low-cost energy service to their customers.

E-5 Idaho and Idaho utilities should continue to prepare resource plans that balance
a variety of attributes, costs, and risks, including the possibility of federal
regulations that impact resource portfolios.

E-6 The State of Idaho should encourage technologies that minimize emissions,
harmful pollutants, and consumptive use of water.
RENEWABLE GENERATION RESOURCES
Actions
E-7. Idaho should encourage cost-effective investment in renewable generation and
combined heat and power facilities.
E-8. Energy project financing by the Idaho Energy Resources Authority should be
encouraged to promote energy and economic development.

2012 Idaho Energy Plan 10
E-9. Idaho utilities should provide customers with the information and choices that
enable them to more effectively manage their electricity consumption.
E-10. In accordance with federal law, the Idaho PUC should continue to administer its
responsibilities under the Public Utility Regulatory Policy Act in a way that
encourages the cost-effective development of customer-owned renewable
generation and combined heat and power facilities.
E-11. It is Idaho policy to encourage investment in customer-owned generation;
therefore the Idaho PUC, utilities, municipalities, and cooperatives are
encouraged to ensure non-discriminatory policies for interconnection and net
metering.
E-12. Idaho utilities should continue to report annually to their retail customers their
sources of electricity generation.
CONVENTIONAL GENERATION RESOURCES
Actions
E-13. The Idaho PUC, the Office of Energy Resources, and the Department of
Environmental Quality should monitor the status of advanced energy generation
technologies to stay aware of opportunities and risks.
E-14. Idaho leaders, electric utilities and other energy-related companies, economic
development professionals, universities, other stakeholders, and the Idaho
National Laboratory should work cooperatively to assess opportunities and risks
associated with development of commercial nuclear power and nuclear energy-
related services in Idaho and provide related recommendations.

E-15. Idaho should encourage the efficient use of water resources in all energy
generation.

TRANSMISSION

Policy

5. It is Idaho policy to encourage a stable, robust, reliable transmission system in order
to provide reliable low-cost energy to Idaho consumers and facilitate renewable
generation.

Actions
E-16. Idaho should continue participating in regional efforts aimed at increasing the
capability of the western transmission grid and bringing to Idaho the benefits of
cost-effective remote resources.
E-17. Energy project financing by the Idaho Energy Resources Authority should be
encouraged to promote low-cost financing for transmission or distribution
projects that benefit Idaho citizens and promote economic development.

2012 Idaho Energy Plan 11

Natural Gas
Policies
6. It is Idaho policy to encourage the most effective use of natural gas and ensure that Idaho
consumers have access to a reliable low-cost supply.
7. It is Idaho policy to support responsible exploration and production of natural gas
supplies and the expansion of the transmission, storage, and distribution infrastructure.
Actions
NG-1. Idaho should encourage investments in natural gas supply resources, including
landfill methane, anaerobic digesters, and biomass methane in a manner that
protects property owners and the environment.
Petroleum and Transportation Fuels
Policies
8. It is Idaho policy to promote the production and use of cost-effective and
environmentally sound alternative fuels.
9. It is Idaho policy to promote conservation and efficiency as a means of reducing the
burden of transportation fuel expenditures, improving the reliability and cost of Idaho’s
transportation fuel supply, and reducing transportation-related emissions.
10. It is Idaho policy to support responsible exploration and production of petroleum
supplies and the expansion of transmission, storage and distribution infrastructure
benefiting Idaho.

ALTERNATIVE FUELS
Actions
T-1. Idaho should ensure that its state vehicle procurement rules promote purchases
of high efficiency, flex-fuel, and alternative fuel vehicles where cost-effective.
T-2. Idaho should encourage the purchase of efficient, flex-fuel, and alternative fuel
vehicles.
T-3. Idaho should encourage investments in retail and wholesale alternative fuel
supply infrastructure.
T-4. Idaho should promote research and development and business-university
partnerships to speed the commercialization of alternative fuel technologies.

TRANSPORTATION FUEL CONSERVATION
Actions
T-5. Idaho should encourage the installation and operation of equipment that
reduces truck and tour bus idling.

2012 Idaho Energy Plan 12
Conservation and Energy Efficiency
Actions
CE-1. All Idaho utilities should fully incorporate cost-effective conservation, energy
efficiency and demand response as priority resources in their Integrated
Resource Planning.

CE-2. The Idaho PUC should encourage investor owned utilities (IOUs) to pursue cost
effective conservation in their service territories.
CE-3. The Idaho PUC should establish and continue to periodically update an avoided-
cost benchmark for each investor owned utility to be used in evaluating the cost-
effectiveness of conservation and renewable resource investments and in
calculating payments to Qualifying Facilities under the Public Utility Regulatory
Policy Act (PURPA).
CE-4. The Idaho PUC should seek to eliminate disincentives that stand as barriers to
implementing cost-effective conservation measures. The PUC should consider
appropriate methods to avoid the disincentives associated with investor owned
utility conservation efforts. Options may include, but are not limited to:
i. Recovery of revenues lost due to reduced sales resulting from
conservation investments;
ii. Capitalization of conservation expenditures;
iii. A share of the net societal benefits attributable to the utility’s energy
efficiency programs;
iv. An increase in the utility’s return on equity for each year in which
savings targets are met;
v. Decoupling of utility revenue from sales.
CE-5. The Idaho PUC should support market transformation programs that provide
cost-effective energy savings to Idaho citizens.
CE-6. The Idaho PUC and Idaho utilities should continue to adopt rate designs that
encourage more efficient and effective use of energy.
CE-7. Idaho’s municipal and cooperative utilities should annually report their
estimates of conservation in their service territories and their estimated savings
in electrical energy (MWh) and peak capacity (kW) during the lifetime of the
measures implemented.
CE-8. Idaho should encourage investments in energy efficient technologies to the
extent practical.
CE-9. Idaho should review international energy codes on a three-year cycle as a
minimum for building energy efficiency standards and should provide technical
and financial assistance to local jurisdictions for implementation and
enforcement.
CE-10. State government should:

2012 Idaho Energy Plan 13
i. Demonstrate leadership by promoting cost-effective energy efficiency,
energy efficient products, use of renewable energy, and fostering
emerging technologies by increasing energy efficiency in State
government;
ii. Ensure that public facility procurement rules allow implementation of
cost-effective energy efficiency and small-scale generation at public
facilities;
iii. Collaborate with utilities, regulators, legislators and other impacted
stakeholders to advance energy efficiency in Idaho’s economy;
iv. Work to identify and address barriers and disincentives to increased
acquisition of energy conservation and efficiency; and
v. Educate government agencies, the private sector and the public about
the benefits and means to implement energy efficiency.

Energy Facility Siting
Policies
11. The Committee reiterates the recommendation from the 2007 Plan that Idaho state
agencies play a role in providing technical assistance to support local energy facility
siting decisions and that local jurisdictions make a reasonable effort to hear testimony
about the impact of proposed energy facilities from citizens and businesses in
neighboring jurisdictions.
Actions
S-1. The Office of Energy Resources should ensure local officials are aware of the
Energy Facility Site Advisory Act, Section 67-2351, Idaho Code, and the
opportunity to establish Energy Facility Site Advisory Teams to provide
technical assistance when requested by local jurisdictions.
S-2. Sponsors of new transmission line projects in Idaho should consider adopting
best practices from the siting of other transmission lines in the Western
Interconnection.
Economic Development
Policies
12. Pursue regional dialogue with neighboring states and provinces, with the goal of
pursuing common energy market economic development interests and
managing energy-related policy risk.
13. Continue to promote energy-related jobs and career opportunities for Idaho
citizens.

2012 Idaho Energy Plan 14
Actions
ED-1. Encourage a broader engagement with the Center for Advanced Energy Studies
(CAES) to advance energy-related technology commercialization, efficiency,
research, and deployment.

Energy Outreach and Education
Policies
14. Idaho should raise the awareness of energy challenges and opportunities in Idaho
through education and outreach.
Actions
EE-1. The Legislature and the State Board of Education should encourage schools to
provide courses or workshops on energy systems, technologies, issues, and
approaches.

EE-2. The Office of Energy Resources should be continued and shall work with the
ISEA and the Public Utilities Commission and should engage in public outreach
and education and work with Idaho energy stakeholders to promote a reliable,
diverse, cost-effective and environmentally sound energy system for the benefit
of Idaho citizens and businesses.
EE-3. The Office of Energy Resources will report to the Legislature as requested by the
Legislature at least every two years and as requested on the progress of Idaho
state agencies, energy providers and energy consumers in implementing the
recommendations in this Energy Plan.
EE-5. The Interim Committee recommends that the Legislature develop a process and
approach to continually update data and assess opportunities and risks on a
yearly basis and perform a complete revision of the Energy Plan on at least a
five-year basis.

2012 Idaho Energy Plan 15
1. Introduction, Background and Context
1.1. INTRODUCTION
In 2007, the Idaho Legislature’s Interim Committee on Energy, Environment and Technology
(‚Committee‛) submitted the first integrated Idaho Energy Plan to the Idaho Governor and
Legislature for consideration, with an accompanying Minority Report. This Plan (‚2007
Plan‛) was adopted by the Legislature and Governor. The 2007 Plan provided an overview of
the ‚energy picture‛ in Idaho, provided an overview of Idaho’s future energy supply under
existing plans, and provided recommendations regarding policy, actions, and associated
implementation that would help assure Idaho citizens’ access to affordable, secure,
sustainable energy while fostering economic growth in the State. As part of the 2007 Plan,
the Committee recommended (and HCR 013 [2007 session] required) that the Legislature
revisit the Idaho Energy Plan every five years in an effort to assure that the facts are accurate
and current and that the recommendations contained in the Plan continue to reflect the best
interests of Idaho businesses and citizens as well as current conditions in the State. This 2012
update to the 2007 Plan is intended to accomplish this goal.
As in 2007, today the Committee finds that Idaho citizens and businesses continue to benefit
from stable and secure access to affordable energy (e.g., electricity and fuels for
transportation, space, and process heat). Our state utilities and businesses have made notable
progress in integrating abundant renewable energy into our energy networks, primarily in
the form of renewable electric generation; which was a policy objective of the 2007 Plan. State
government, businesses, and consumers have shown leadership in developing innovative
ways to reduce energy consumption through energy efficiency measures. Of particular note
are the efforts of utilities and state government to help consumers reduce energy
consumption and efforts in the business sector to do the same. Non-governmental
organizations operating in the state, our Idaho universities, the Idaho National Laboratory,
and many businesses and private citizens have contributed significantly to advancing our
collective knowledge concerning energy issues, thereby feeding a healthy debate.
Energy issues will continue to grow in importance and impact for all Idahoans. Even with
significant energy efficiency and conservation measures, energy consumption in Idaho is
expected to increase substantially as our population increases and economic activity
increases. This growth combined with uncertainties inherent in national energy markets
stemming from challenging demand patterns, resource availability, cost of infrastructure and
technology, life-cycle considerations for present generation sources, energy delivery and
transmission constraints, and environmental and other concerns creates both challenge and
opportunity in our energy future. As in 2007, a substantial percentage of the energy
consumed in Idaho (approximately 70%)3 is produced outside of Idaho’s borders; this fact is
not necessarily a negative, as it is imperative that Idaho businesses and citizens acquire the
lowest cost supplies where the markets allow. However, this exposes customers to a degree
of vulnerability due to policy decisions outside of their control, a consideration to be
addressed by the policy approach for our State.

3 Energy Information Administration SEDS, 2009 State Energy Data System Idaho (139.9 TBTUs production,
509 TBTUs consumption)

2012 Idaho Energy Plan 16
With this recognition, the 2012 Idaho Energy Plan re-emphasizes the core objectives of the
2007 Energy Plan – to set the policy framework that will help enable a secure, reliable,
affordable energy supply network while protecting public health and safety and enhancing
economic competitiveness. Our focus is on the five objectives of Idaho’s energy future:
1. Ensure a secure, reliable, and stable energy system for the citizens and businesses of
Idaho.
2. Maintain Idaho’s low-cost energy supply and ensure access to affordable energy for
all Idahoans.
3. Protect Idaho’s public health, safety, and natural environment and conserve Idaho’s
natural resources.
4. Promote sustainable economic growth, job creation and rural economic
development.
5. Provide the means for Idaho’s energy Policies and Actions to adapt to changing
circumstances.

In the following pages, the Interim Committee provides data to establish a common basis for
policy direction; provides an assessment of options and opportunities; examines risks and
lessons learned; provides a look-ahead at technology and policy issues that have the potential
to significantly impact our energy well-being; and offers policy guidance and
implementation processes that will help ensure an ongoing, structured, and productive
public discourse on our energy future.
This is the 2012 Idaho Energy Plan.

2012 Idaho Energy Plan 17
Table 1.1. Facts About Energy in Idaho

$4.9 billion

Approximate amount Idaho (residential, commercial, industrial, and
transportation sectors) spent on energy in 2009

$4,500

8th lowest

Approximate average amount each Idaho household spent on energy (including
gasoline) in 2009

Idaho’s average gasoline prices in 2009 compared to the national average
10% Share of Idaho median household income spent on energy in 2009

2nd lowest

31st

Idaho’s rank among the fifty states for average electricity prices in 2009

Idaho’s rank in among all other states in percent of median household income
spent on energy (household energy bills / household income) including
transportation fuel

14th lowest Idaho’s rank among the fifty states for residential natural gas prices in 2009

1112%

Percent of increased energy efficiency and conservation savings by Idaho investor
owned utilities since 2004 due to increased energy efficiency and conservation
measures4

0 Total amount of coal, oil and natural gas produced in Idaho in 2009

52% Share of Idaho’s 2009 electric energy supply that was imported from out of state

50% Share of Idaho’s 2009 electricity fuel mix that came from hydroelectricity

38% Share of Idaho’s 2009 electricity fuel mix that came from coal-fired power plants

3.4% Share of Idaho’s 2009 electricity supply that came from non-hydro renewable
energy sources

46.5%

19th highest
Share of Idaho’s 2020 electricity supply that is expected to come from non-hydro
renewable energy sources based on 2011 Idaho utility resource plans

Idaho’s energy intensity as a share of the state economy compared to other states

Note: Sources for this data can be found as it is referenced within the text.

4 2004 savings of 16.1MWh for all three utilities; 2010 savings of 196.8 MWh for all three utilities.
Information from their IRPs.

2012 Idaho Energy Plan 18
This Energy Plan presents a broad set of consensus recommendations, encompassing nearly
every aspect of the Idaho energy industry. The recommendations range from general to very
specific, reflecting the fact that state authority is both limited and uneven. In some areas,
particularly with respect to investor owned electric utilities, the state’s regulatory oversight
affords a substantial degree of latitude to establish policy that will affect major decisions. As
a result, the Committee’s recommendations are very specific in this area and speak to both
increasing the supply of electricity available to Idaho utilities and reducing the demand for
electricity by Idaho consumers. In other areas, particularly with respect to petroleum, the
state has limited ability to affect supply conditions, and the Committee’s recommendations
are limited to reducing demand and promoting conservation and other alternatives to
petroleum-based fuels. In all cases, the recommendations of this Energy Plan are forward-
looking, and are not meant to assign credit or blame for past performance. Rather, they
represent the Committee’s best effort to outline concrete steps that will achieve the objectives
that it set out at the beginning of its investigation.
The Committee intends this 2012 Idaho Energy Plan to serve as a guide for all Idaho citizens
and businesses in their decisions about energy production, delivery, and consumption. The
Committee recognizes that true success in achieving the energy policy objectives set out in
this Energy Plan will occur only when all Idaho citizens and businesses take some initiative
toward wise energy use on their own, rather than waiting for incentives or mandates from
state government.
1.2. POLICY CONTEXT FOR 2012 IDAHO ENERGY PLAN
Idaho’s last energy plan was developed in 2007 by the Idaho Legislature’s Interim Committee
on Energy, Environment and Technology in compliance with House Concurrent Resolution
(HCR) 62.5 In compliance with HCR 13 requiring the Legislature to update Idaho’s Energy
Plan a minimum of every five years, the Committee took this opportunity to perform an in-
depth evaluation of Idaho’s energy situation at this point in time. The legislative intent from
HCR 62 refers to the need for ‚an integrated energy plan for the state of Idaho that provides
for the state’s power generation needs and protects the health and safety of the citizens of
Idaho.‛
The Committee took this opportunity to gather updated information concerning a broad
range of energy production, transmission, and use in Idaho, including electricity, natural gas,
transportation fuels, energy facility siting, economic development, and energy education.
This information provides the basis for energy policy guidelines contained in this Plan as
well as specific recommendations.
1.3. PROCESS USED BY THE COMMITTEE TO DEVELOP THE 2012 IDAHO
ENERGY PLAN
The Committee made a request to the Office of Energy Resources and the Idaho Strategic
Energy Alliance (ISEA) to assist in the review and updating of the 2007 Idaho Energy Plan.
This request was accepted in a letter to the Committee Co-Chairmen on June 25, 2011. The
ISEA Board discussed the process to provide this assistance in its Board meeting on July 8,

5 http://www.legislature.idaho.gov/legislation/2010/HCR062.pdf

2012 Idaho Energy Plan 19
2011. Subsequently the ISEA reviewed the 2007 Plan contents and provided a draft update to
the Committee on September 28, 2011.
The Committee reviewed the draft material provided by the ISEA and conducted a thorough
public process in developing the recommendations of this Energy Plan. In fact over 120
comments were received by the Interim Committee from the public.
The Committee operated to the extent possible on a consensus basis. The goal of the Interim
Committee Co-Chairs was to develop a consensus set of policy guidelines and specific
recommendations that the Committee could forward to the Legislature, the Executive
Branch, and various stakeholders.

1.4. ENERGY PLAN FINDINGS
The findings of the Committee are organized into three categories: Objectives, Policies, and
Actions. The Energy Plan Objectives provide high-level guidance by outlining broad goals
that the Committee wishes to achieve for Idaho. Policies establish the direction that Idaho
should pursue in specific topic areas in order to achieve the Objectives, and Actions are
specific items that advance and implement the Policies. The Objectives, Policies, and Actions
are described below, and a complete list of Committee recommendations is provided in
Chapter 6.

1.4.1. Energy Plan Objectives
The Committee established the Objectives for the energy plan at the outset of its efforts. The
Committee’s Objectives for this Energy Plan are to:
1. Ensure a secure, reliable, and stable energy system for the citizens and businesses of Idaho;
2. Maintain Idaho’s low-cost energy supply and ensure access to affordable energy for all
Idahoans;
3. Protect Idaho’s public health, safety, and natural environment and conserve Idaho’s natural
resources;
4. Promote sustainable economic growth, job creation, and rural economic development; and
5. Provide the means for Idaho’s energy policies and actions to adapt to changing circumstances.
1.4.2. Accomplishments Since 2007
The 2007 Idaho Energy Plan6 issued in March 2007 contains 18 policies and 44 recommended
actions to assist in the implementation of stated policies. The policies and recommendations
were organized in the following subject areas: Electricity, Natural Gas, Petroleum and
Transportation Fuels, Energy Facility Siting, and Implementation. As required by one of the
recommended actions, the Office of Energy Resources and the Idaho Public Utilities

6 Idaho Legislature, 2007 Idaho Energy Plan, Idaho Legislature, Energy, Environment and Technology
Interim Committee, March 11, 2007 -
http://www.legislature.idaho.gov/sessioninfo/2007/energy_plan_0126.pdf

2012 Idaho Energy Plan 20
Commission jointly issued a report7 in December 2009 to "report to the legislature every two
years on the progress of Idaho state agencies, energy providers and energy consumers in
implementing the recommendations." Of the 44 recommended actions, 34 deal with
electricity, natural gas, facility siting, and implementation. Of this 34, only four have any real
impact on state funding, those related to tax incentives and those recommending incentives
for investments in non-traditional natural gas supply resources.8

Table 1.2. Number of Recommended Policies and Actions in the 2007 Idaho
Energy Plan
Number of
Recommended:
Subject Area Policies Actions
Electricity 11 24
Natural Gas 2 3
Petroleum and
Transportation
Fuels
3 10
Energy Facility
Siting 1 3
Implementation 1 4

It is recognized that the energy environment changes rapidly and that energy technology
continually evolves. As such, recommendations made at any point in time can age quickly.
While any assessment about whether or how recommendations were addressed is somewhat
subjective, a fair judgment is that approximately 19 of the 44 recommendation actions were
completed, partially completed, or are in progress; 25 of the recommended actions were not
implemented, could not be implemented, or are the responsibility of others and not the party
identified in the action. Attempts were not made to implement some actions, such as
recommended incentives, due to changes in the economic situation not long after submission
of the 2007 Idaho Energy Plan.

The 2007 Idaho Energy Plan recognized the importance of energy to the citizens, businesses,
and industries in Idaho. Development of the plan and implementation of a portion of its
recommendations is a positive step in helping to secure Idaho's energy future. The current
plan builds upon this foundation and will consider recommendations and policy direction
from the 2007 Plan as well as propose new and revised recommendations.

7 Idaho Office of Energy Resources and Idaho Public Utilities Commission, Report to the Idaho State
Legislature December 2009, December 11, 2009.
8 Snake River Alliance Idaho Energy Plan Review:
http://www.snakeriveralliance.org/Portals/2/documents/Idaho%20Energy%20Plan%20Review_Snake%20Ri
ver%20Alliance_July%202011_2.pdf

2012 Idaho Energy Plan 21
1.4.3. Recommended Policies and Actions
ELECTRICITY
Idaho citizens and businesses have benefited from a stable, reliable and low-cost electricity
supply and this Energy Plan does not recommend major changes to the structure of Idaho’s
electricity industry. At the same time, the Committee recognizes that investments in new
generating resources are becoming increasingly challenging due to volatile fuel costs and
increasing environmental concerns and that Idaho’s current dependence on coal resources for
nearly 40% of its electricity supply could leave the state vulnerable to potential carbon
regulation. Enhancing energy conservation and efficiency measures and continuing to
support the further development of cost-effective in-state renewable energy resources in
order to reduce Idaho’s dependence on imported coal-fired power are important aspects of
Idaho policy.
To that end, this Energy Plan recommends that state government play an active role in
facilitating the deployment of power generation and energy conservation resources that are
both cost-effective and environmentally sound. It recommends establishing cost-effective
conservation, energy efficiency, and demand response as the highest priority resources. The
Committee notes that the PUC and Idaho’s utilities have made substantial progress in their
efforts to acquire cost-effective energy conservation and efficiency as well as renewable
energy resources.
While the Energy Plan’s principal focus is on boosting the development of cost-effective in-
state energy conservation and efficiency, developing renewable energy, and balancing
resources, the Committee recognizes that conventional resources such as coal and natural gas
will continue to be needed to provide low-cost electricity service to Idahoans and
recommends that Idaho utilities continue to have access to a broad variety of resource
options. This Energy Plan emphasizes resource diversity as a means of minimizing the risks
associated with reliance on a particular fuel or resource type. For this reason, it endorses the
Integrated Resource Planning process as the appropriate vehicle for evaluating diverse
portfolios of resource options and providing for public involvement in utility resource
decisions.
The Plan also encourages monitoring new energy technologies and cooperation between
stakeholders to allow us to more quickly respond to possible opportunities and risks.
NATURAL GAS
Idaho is favorably located between two major natural gas supply basins and has historically
benefited from natural gas prices that are well below the national average. However, in 2011,
all of Idaho’s natural gas supplies are currently imported from out of state, meaning that
Idaho derives little economic benefit from the dollars spent on natural gas, although our
industries and consumers benefit greatly from the ready supply. Moreover, with growing
demand in the Northwest and new pipeline capacity between the Rocky Mountains, lucrative
markets in the Northeast are likely to erode Idaho’s location-based price advantage over the
next several years. This Energy Plan recommends that Idaho support responsible exploration
and production of natural gas and expansion of the natural gas infrastructure that serves
Idaho customers. It also recommends that Idaho reduce or defer the demand for imported
natural gas by promoting investments in natural gas conservation as well as alternative
sources of natural gas such as landfill methane and biogas from anaerobic digesters. Finally,

2012 Idaho Energy Plan 22
the Energy Plan recommends that Idaho encourage the most effective and efficient use of
natural gas.
PETROLEUM AND TRANSPORTATION FUELS
Petroleum fuels, the vast majority of which are used for transportation, constitute 39 percent9
of Idaho’s end-use energy consumption. Like natural gas, 100 percent of Idaho’s petroleum
fuels come from out of state.
Idaho’s average gasoline prices ranked 8th lowest among U.S. states in 2009, but it must be
noted that each state has a different state fuel tax and that gasoline price rankings can change
rapidly and significantly (e.g., on 10/9/11, the price of regular gasoline in Idaho was
significantly above the national average - $3.690 per gallon vs. $3.396 per gallon).10
Idaho’s state gasoline tax rate is currently 25 cents per gallon, which has not increased since
1996.11 Combined with local and federal taxes, Idaho’s total gas tax is 43.4 cents per gallon,
less than all surrounding states except for Montana and Wyoming. The average nationwide
tax collected on each gallon of gasoline sold at the retail station is 49.5 cents. Of that total
amount, 18.4 cents per gallon goes to the federal government; the rest ends up in state and
local government coffers. The amount of total gasoline taxes collected by states can vary
widely, from just 26.4 cents per gallon in Alaska, to as much as 65.8 cents per gallon in
Hawaii.12 It must be noted that Idaho has very little leverage over either the oil companies
that supply Idaho’s transportation fuel needs or the automakers that make the products
responsible for the majority of petroleum consumption. As a result, the recommendations of
this Energy Plan focus on reducing demand for imported oil by encouraging the purchase of
high efficiency and alternative fuel vehicles, carpooling when possible, and public
transportation where practical.
There is considerable interest in using electricity as a transportation fuel with the first
modern mass market plug-in electric passenger vehicles (with the hybrid-electric Chevrolet
Volt and the full-electric Nissan Leaf) recently becoming available. While plug-in electric
vehicles are likely to be a small fraction of the market (estimated at about 1.4% of the global
light duty vehicle market in 2017)13 they have important potential implications on electrical
generation, the transmission grid, and electricity costs. As such, plug-in electric vehicle
penetration in Idaho and its effects should be monitored.
ENERGY EFFICIENCY AND CONSERVATION
The Committee finds that energy conservation and energy efficiency measures provide the
greatest economic and environmental benefits for Idaho (and enhanced economic
competitiveness for our businesses) and should be one of Idaho’s highest priority energy
resources and thus it is a major focus of the 2012 Idaho Energy Plan. The Committee believes

9 Source: http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
10 AAA Daily Fuel Gauge Report, http://fuelgaugereport.aaa.com/
11 http://www.idahogasprices.com/tax_info.aspx
12 http://www.api.org/aboutoilgas/gasoline/ and http://www.idahogasprices.com/USA_Tax_Map.aspx
13 Pike Research, Electric Vehicle Market Forecasts, 3Q 2011: http://www.pikeresearch.com/research/smart-
transportation/electric-vehicles

2012 Idaho Energy Plan 23
that increasing investments in energy conservation is in order to reduce Idaho’s dependence
on out-of-state energy sources. To this end, the Plan encourages Idaho utilities and the Idaho
PUC to pursue cost-effective energy efficiency measures, and promotes the state leading this
effort in several ways, including removing barriers and promoting education.
ENERGY FACILITY SITING
The Committee evaluated the possibility of establishing a state level energy facility siting
body, but a majority of Committee members favor retaining energy facility siting decisions at
the local level. The Committee believes that a state level energy facility siting body is
unnecessary at this time.
At the same time, local officials may benefit from the technical expertise and information of
state agencies when considering proposals to site large energy facilities in their communities.
This Energy Plan therefore recommends that state resources be made available in the form of
an Energy Facility Site Advisory Team, composed of key employees from a number of state
agencies, to provide information and advice at the request of local officials. The state role
would be advisory only; final decision-making authority should continue to rest with local
jurisdictions.
ECONOMIC DEVELOPMENT
Economic development considerations related to energy are multi-faceted. First, there can be
economic and jobs advantages in considering development of in-state generation and
transmission. Possibly of greater import for Idaho in the near term are the opportunities
associated with serving global energy markets with manufacturing and service industries for
which Idaho is strategically well placed. Third, the types of industries that we choose to
invest in attracting to Idaho will have an influence on energy availability and cost in Idaho.
This consideration should be factored into both energy and economic policy decisions. Given
these considerations, it is the policy of the State to support and encourage a fact-based
dialogue on the costs, risks, and benefits of various in-state generation options; to encourage
and support focused economic development activities that leverage Idaho business strengths
to build a strong and robust energy workforce and services and manufacturing industry; and
to consider energy consumption profiles and impacts as a factor in prioritizing economic
development incentives.
ENERGY OUTREACH AND EDUCATION
Energy production, manufacturing, and research is a fast growing and important industry
globally. Reliable, affordable energy supplies are not only critical to the functioning of a
modern economy, but are necessary to protect the public health and safety. Additionally, the
extraction, production, and distribution of energy generally has a large ‚footprint‛ in terms
of land use, water use, and other impacts. In short, the nature of the energy industry
necessitates a strong degree of public oversight, and state regulation of investor-owned
electric and natural gas utilities places the state in a very active role. Thus, the Committee
believes that it is crucial for state policymakers and the public to maintain consistent
oversight of the energy industry and to stay educated about the latest technological and
institutional developments.
To that end, the Committee recommends a number of steps to raise the profile of energy
issues within state government and to promote and oversee implementation of the

2012 Idaho Energy Plan 24
recommendations of this Energy Plan. The Committee believes that enhanced public
education and outreach, and regular, organized public discourse on energy facts,
opportunities, trends, and risks will help position Idaho citizens, businesses, and policy
makers respond to the changing energy landscape with the best information available,
resulting in the highest value to all Idaho citizens.
To ensure that they continue to reflect the best interests of Idaho citizens and businesses, the
Committee also finds that it is important that the recommendations in this Energy Plan be
subject to an organized review on a regularly scheduled basis. While the Committee cannot
bind future Legislatures to a schedule for Energy Plan updates, the Committee recommends
that the plan be revisited and new recommendations developed regularly (to match the rapid
changes in energy-related opportunity and risk), and that the Legislatures maintain a close
connection with the Idaho Strategic Energy Alliance and receive public input in order to
provide additional and regular expertise and information as needed.
1.4.4. Timeline for Implementing the Energy Plan Recommendations
The recommendations of this Plan include a variety of proposals aimed at a number of
different parties in Idaho's energy space. The Committee's recommended timeline for
implementation of these proposals varies depending upon the parties connected to the
recommendations. The Committee expects that some elements of the Energy Plan will be
implemented with legislative action during the 2012 Legislative Session. Actions involving
the PUC and Idaho utilities can begin now, but may take somewhat longer to fully
implement as new rules work their way through the PUC regulatory process and as utilities
update their integrated resource plans (IRP) and energy conservation programs.
Recommendations aimed at Idaho consumers may take the longest to implement, as
consumers are generally slow to change their behavior and efforts to transform markets for
energy-consuming technologies can take many years. The Office of Energy Resource's
biennial reports should inform the Legislature about the progress that stakeholders are
making in implementing the recommendations of this Energy Plan.
2. Idaho’s Energy Status
2.1. OVERVIEW
Historical data shows that economic growth and energy consumption are strongly and
positively correlated. As Idaho grows, so will the demand for energy. The St. Louis Federal
Reserve Bank reports that Idaho’s gross domestic product over the 1997 to 2010 period grew
5.3 percent annually,14 while the national gross domestic product grew only 2.3 percent15 over
the same period. The growing economy meant increasing energy use. Idaho energy
consumption (transportation, heat, light, and power) grew 1.2 percent annually16 over the
1990 to 2009 period. By comparison, national energy consumption grew 0.6 percent
annually17 over the same period. Energy use in Idaho reflects both a growing economy and

14 http://research.stlouisfed.org/fred2/series/IDNGSP
15 http://research.stlouisfed.org/fred2/series/USARGDPQDSNAQ
16 U.S. Energy Information Administration,
www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
17 U.S. Energy Information Administration, http://www.eia.gov/state/seds/seds-data-complete.cfm#ranking

2012 Idaho Energy Plan 25
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Gasoline v. Consumer Price Index
the nature of agriculture and industry within the state, along with the native climate.
Consequently, the health of Idaho’s economy today depends on access to affordable energy
resources.
While Idaho has some of the lowest electricity prices in the nation and the world18,
transportation fuel and natural gas prices tend to follow global and national markets. Over
the past two decades the price of transportation fuel has risen at a pace similar to other
prices.19

Figure 2.1. Gasoline Prices versus Consumer Price Index

Looking forward, the price of gasoline is expected to continue rising as the cost of production
from deeper wells in increasingly remote locations pushes up prices and global demand
increases significantly. These global supply and demand pressures will likely impact Idaho
significantly.

In contrast, industry experts anticipate the future price of natural gas could rise at a slower
pace than crude oil. New hydraulic ‚fracking‛ technology enables natural gas production at
lower cost than historic norms, and has opened new supplies of natural gas that have
increased U.S. proven reserves substantially. While new technology is expanding production,
demand for natural gas is likewise expanding faster than was the case a decade ago. Across
the nation power generation has driven up consumption of natural gas 3% annually for the
last decade.20 There are a number of reasons to believe this pattern will persist. Over the past
decade natural gas power plants have been the primary resource to supply the nation’s
growing electricity needs. Additional natural gas power generation will be needed to replace
retirements of old power plants that lack necessary environmental controls to meet
government regulations.

18 SNL Energy Financial Focus, May 23, 2011, page 16.
19 U.S. Energy Information Administration, www.eia.gov/petroleum/data.cfm#prices & U.S. Bureau of Labor
Statistics
20 New Projections for Oil and Natural Gas, Jason Stevens, Morningstar Stock Investor, July 2011, page 21.

2012 Idaho Energy Plan 26
The price of electricity is a function of both national and regional factors. As noted above,
Idaho enjoys low electricity prices. This has been a historic advantage to Idaho that is
expected to persist as the state continues energy policies consistent with the past. Regional
power plants built in past decades, including hydro and coal-fired plants, continue to
provide service at legacy prices. However, new power plants and power lines needed to
serve growing energy demand will pressure prices upward. The magnitude of price changes
is difficult to predict. The average price of electricity in Idaho shows a high correlation with
overall price changes.21

Figure 2.2. Electricity Prices versus Consumer Price Index

The state produces about 25 percent of the energy it consumes, as shown in Figure 2.3.22 Most of
the energy produced in Idaho comes from hydroelectric dams. The state’s reliance on energy
from neighboring states indicates that infrastructure maintenance and development such as
highway, rail, pipeline, and power lines are critical to support economic development.

21 U.S. Energy Information Administration, www.eia.gov/electricity/data.cfm#sales & U.S. Bureau of Labor
Statistics
22 U.S. Energy Information Administration, http://www.eia.gov/state/seds/sep_prod/pdf/PT2_ID.pdf
19
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2012 Idaho Energy Plan 27
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Idaho Energy Resources
(in trillions of Btu)
Hydro Other Renewable Natural Gas
Gasoline & Diesel Electricity Imports Coal

Figure 2.3. Energy Production and Consumption

Idaho energy consumption is primarily a blend of electricity, natural gas, along with gasoline
and diesel. Gasoline and diesel provide about 31 percent of energy used in Idaho. Natural
gas provides about 16 percent of the state’s energy, while electricity provides 53 percent of
state’s energy. Roughly half of the electricity consumed in Idaho comes from neighboring
states.

Figure 2.4. Idaho Energy Resources

23 U.S. Energy Information Administration,
www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho

2012 Idaho Energy Plan 28
2.2. IDAHO UTILITIES AND ENERGY SYSTEMS
2.2.1. Electricity
Idaho consumers have access to low priced electric service as compared to other states, as
shown in Figure 2.5.24

Consumers are served by three investor owned electric utilities (‚IOUs‛), eleven municipal
utilities, and fourteen rural electric cooperatives. The three IOUs serve approximately 84
percent of the state’s electricity needs. The remainder is served by municipals and rural
cooperative utilities. Figure 2.6 shows the service territories of the IOUs and Figure 2.7
shows the service territories of Idaho’s municipal and cooperative utilities (see pages 33 and
34).

24 Energy Information Administration, Average Retail Price of Electricity to Ultimate Consumers, Table
5.6.B, http://www.eia.gov/electricity/monthly/index.cfm)
25 http://www.icua.coop/

2012 Idaho Energy Plan 29
Hydro
51% Coal
25%
Natural Gas
21%
Biomass
3%
Other
0%
Avista's Typical Resource Mix
http://www.avistautilities.com/inside/resources/pages/default.aspx
Figure 2.5. Statewide Average Electricity Price to Consumers
Source: Average Regulated Retail Price of Electricity: 2010 and comparative historical data, Financial Focus SNL Energy, May
23, 2011, http://www.citizing.org/data/projects/working-team-affordabilitycompetitive-pricing/RetailElectricityPrices.pdf

AVISTA CORPORATION
Avista is an investor owned electric and natural gas utility headquartered in Spokane,
Washington. Founded as the Washington Water Power Company in 1889, it changed its
name to Avista Corporation in
1999. Currently, Avista serves
over 200,000 electric and natural
gas customers in Idaho’s north
and central regions, and is the
second largest electricity
provider in Idaho. Electric
customers receive a mix of
hydroelectric, natural gas, coal,
biomass, and wind generation
delivered over 2,100 miles of
transmission line and 17,000
miles of distribution line. About
half of Avista's electricity comes from hydropower resources that provide a significant price
benefit for its customers. Natural gas is delivered over 6,100 miles of natural gas distribution
mains. Avista has a portfolio of hydroelectric resources located in western Montana, eastern

2012 Idaho Energy Plan 30
Coal
50%
Gas
19%
Hydro
10%
DSM
3%
Renewables
2% Purchases
12%
QF
2% Interruptible
2%
PacifiCorp Expected Load and Resource Balance
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Inte
Washington, and northern Idaho; ownership shares of Montana coal plants; and natural gas-
fired baseload and capacity in Idaho, Oregon, and Washington.26
IDAHO POWER COMPANY
Founded in 1916, the Idaho Power Company serves 490,000 customers in southern Idaho and
eastern Oregon across a 24,000 square mile service territory. Headquartered in Boise, Idaho,
Idaho Power is the largest
provider of electricity in the
state. With its 17 low-cost,
emission-free hydroelectric
projects at the core of its
generation portfolio, it is one
of the nation’s few investor
owned utilities with a
significant hydroelectric
generating base. The heart of
this system is the 1,167 MW
Hells Canyon Complex. Other resources include baseload coal facilities located in Wyoming,
Oregon, and Nevada. Idaho Power also has natural gas-fired combustion turbines and a
natural gas-fired combined cycle project that is scheduled to be placed in service in 2012, all
located in Idaho. In addition to its company-owned resources, Idaho Power’s supply-side
portfolio includes several long-term contracts with wind and geothermal facilities and it has
contracts with 116 PURPA projects, including over 650 MW of wind generation.27

PACIFICORP / ROCKY MOUNTAIN POWER
PacifiCorp serves retail customers in six western states: Washington, Oregon, Idaho,
Wyoming, Utah, and California. PacifiCorp serves over 1.7 million customers across its
136,000 square mile service
territory. PacifiCorp was
founded in 1910 as Pacific
Power & Light, and changed
its name to PacifiCorp in
1984. PacifiCorp began
operating in Idaho in 1989
through its merger with the
Utah Power & Light
Company, which began
serving customers in Idaho
in 1912.28 PacifiCorp was
purchased by Mid-American
Corporation in 2006, and
subsequently changed the name of its eastside retail operating division to Rocky Mountain

26 Avista 2011 IRP.
27 http://www.idahopower.com/AboutUs/CompanyInformation/Facts/default.cfm
28 http://www.rockymountainpower.net/about/cf.html

2012 Idaho Energy Plan 31
Power. Rocky Mountain Power serves 72,348 customers in southern Idaho (approximately
four percent of PacifiCorp’s total customer base). PacifiCorp owns 78 generating plants
capable of 10,483 MW of net generation capacity, including coal, hydroelectric, natural gas,
and wind resources. As a stand-alone utility, PacifiCorp is second only to Mid-American
Energy Company in the ownership of wind generation. Wind, hydro, geothermal and other
non carbon-emitting resources currently make up approximately 24 percent of PacifiCorp’s
owned and contracted generating capacity, accounting for nearly 10 percent of total energy
output. At year-end 2010, PacifiCorp had more than 1,000 megawatts of owned wind
generation capacity and long-term purchase agreements for more than 600 megawatts from
wind projects owned by others.29
MUNICIPALS AND COOPERATIVES
There are 28 rural electric cooperatives and municipalities providing electric service in Idaho.
These utilities serve more than 120,000 customers throughout Idaho, accounting for 16
percent of Idaho’s load. Most of these utilities collaborate under the Idaho Consumer Owned
Utilities Association on issues of administrative, governmental, and regulatory significance.
These municipal and cooperative utilities are customers of the Bonneville Power
Administration (‚BPA‛); BPA provides 95% of the wholesale electric power requirements of
these utilities. The new BPA contracts with service scheduled for October 1, 2011, are based
upon a tiered rate methodology. Under these contracts, BPA has fully allocated the federal
system and provided each utility with its ‚share‛ of the federal system (tier one power) with
cost for this power set ‚at cost‛ of the existing federal system. All BPA customers will be
responsible to provide resource for electric demands in excess of that allocation (tier two
power). Tier two power can be acquired by each utility from a variety of resources including,
but not limited to, utility owned, individual purchase, joint action development or purchase,
or through BPA at a tier two rate (based on the cost of the resource acquired to meet these
demands). This change in construct will require Idaho’s public power utilities to meet future
load growth demand. Historically, these utilities have relied upon BPA to provide most or
all of the energy needed to serve the utilities’ loads.
As a requirement of their BPA contract, the power rate for utilities includes an allocation for
energy efficiency and conservation that will be paid back to the utility upon completion of
approved energy efficiency measures. The BPA targets for regional energy efficiency are
based upon the integrated regional plan of the Northwest Power and Conservation Council
(the Northwest Power Plan).

29 http://www.midamericanenergy.com/newsroom/aspx/facts9.aspx

2012 Idaho Energy Plan 32
Hydro
95%
Nuclear
5%
BPA's Typical Resource Mix
http://www.bpa.gov/power/pgp/whitebook/2010/WhiteBook2010_Summar

BONNEVILLE POWER
ADMINISTRATION
BPA is a federal power marketing
agency in the United States
Department of Energy. Although
BPA is part of the U.S. Department
of Energy, it is self-funding and
covers its costs by selling its
products and services. BPA
markets the power from 31 federal
hydroelectric dams on the
Columbia River and its tributaries,
as well as additional power from
non-federal dams and from the 1,200 MW Columbia Generating Station nuclear power plant
in Richland, Washington. These resources are referred to collectively as the Federal
Columbia River Power System (‚FCRPS‛). The dams are operated by the U.S. Army Corps
of Engineers and the Bureau of Reclamation. About 30 percent of the electric power used in
the Northwest comes from BPA. BPA also operates and maintains about three-fourths of the
high-voltage transmission in its service territory, which includes Idaho, Oregon,
Washington, western Montana and small parts of eastern Montana, California, Nevada, Utah
and Wyoming and covers over 300,000 square miles. 30 Idaho accounts for approximately five
percent of BPA’s load.31 BPA also provides benefits to residential and small farm customers
of IOUs within its service territories, and provides energy service to a handful of industrial
customers known as ‚Direct Service Industries‛.32

30 http://www.bpa.gov/corporate/about_BPA/Facts/FactDocs/BPA_Facts_2010.pdf
31 2010 Pacific Northwest Loads and Resources Study (2010 White Book):
http://www.bpa.gov/power/pgp/whitebook/2010/
32 http://www.bpa.gov/corporate/about_BPA/Facts/FactDocs/BPA_Facts_2010.pdf

2012 Idaho Energy Plan 33
Figure 2.6. Service Territories of Idaho's Investor Owned Utilities

Source: Idaho Public Utilities Commission

2012 Idaho Energy Plan 34
Figure 2.7. Service Territories of Idaho's Municipal and Cooperative Utilities
Source: Idaho Public Utilities Commission

2012 Idaho Energy Plan 35
Idaho utilities are interconnected with each other and with utilities in neighboring states in a
single power grid known as the Western Interconnection. Existing coordinated planning
requirements throughout the Western Interconnection on a local, sub-regional, and regional
basis ensure a reliable and adequate integrated system.33
In general, Idaho’s electric utilities are subject to federal oversight and as such are subject to
compliance monitoring and enforcement by Western Electricity Coordinating Council
(WECC). WECC is geographically the largest and most diverse of the eight regional entities
that monitor and enforce reliability requirements under an agreement with the North
American Electric Reliability
Corporation (NERC). NERC is certified
by the Federal Energy Regulatory
Commission to establish and enforce
reliability standards for the bulk-power
system of North America.34 WECC’s
service territory extends from Canada
to Mexico. It includes the provinces of
Alberta and British Columbia, the
northern portion of Baja California,
Mexico, and all or a portion of the 14
Western states between. In addition to
its compliance role, WECC is
responsible for coordinating and promoting bulk electric system reliability in the Western
Interconnection and provides an environment for coordinating the operations and planning
activities of its members.35
In addition to WECC, IOUs are regulated by the Federal Energy Regulatory Commission
(FERC). The Federal Energy Regulatory Commission, or FERC, is an independent agency
that regulates the interstate transmission of electricity, natural gas, and oil. FERC also
reviews proposals to build
liquefied natural gas (LNG)
terminals and interstate natural
gas pipelines, as well as licensing
hydropower projects. FERC
regulates interstate transmission
and wholesale sales of electricity in
interstate commerce, regulates the
transmission and sale of natural
gas and oil by pipeline for resale in
interstate commerce, and regulates
interstate energy markets. They
may have siting jurisdiction on energy projects in some cases. One of their primary
responsibilities is to protect the reliability of the high voltage interstate transmission system

33Electric Power Annual 2009 - Data Tables Format 1990 - 2009 : Net Generation by State by Type of
Producer by Energy Source (EIA-906, EIA-920, and EIA-923)
34 http://www.nerc.com/
35 http://www.wecc.biz/About/Pages/default.aspx

2012 Idaho Energy Plan 36
through mandatory reliability standards. FERC’s mission is to ‚assist consumers in obtaining
reliable, efficient and sustainable energy services at a reasonable cost through appropriate
regulatory and market means.‛ FERC does not approve retail sales prices of energy or the
physical construction of energy facilities; this is left to the state utilities commissions. In
addition, FERC does not regulate nuclear facilities. This is left to the Nuclear Regulatory
Commission.36 FERC does not regulate the Electric Reliability Council of Texas (ERCOT), as it
schedules and centrally dispatches the grid within a single control area that does not have
major transmission interconnections and is not synchronously connected to the Eastern or
Western Interconnection (it is a separate interconnection).
To summarize these regulatory bodies, FERC has federal authority over power system
reliability, NERC was assigned the role of writing the reliability standards to insure reliable
operation of the bulk power system in North America (including parts of Canada and
Mexico), and WECC is responsible for monitoring and insuring compliance with FERC and
NERC reliability standards in the western United States (including parts of Canada and
Mexico).
2.2.2. Natural Gas
Idaho is favorably located between two large natural gas supply basins: the Western
Canadian Sedimentary Basin (WCSB) in Alberta and British Columbia, and the Rocky
Mountain basins, encompassing portions of Colorado, Montana, Wyoming and Utah. Over
the near term, the production capacity of these two basins is expected to provide adequate
supply to meet demand in Idaho and the Pacific Northwest. Over the longer term, increasing
demand and expanded transportation capacity to more lucrative eastern markets are
expected to tighten the supply-demand balance for the region.
Natural gas is transported from these supply basins to Idaho by two interstate pipelines. The
Williams Companies’ Northwest Pipeline transports supplies from both the WCSB and the
Rocky Mountain region to Idaho, while TransCanada’s Gas Transmission Northwest (GTN)
pipeline delivers gas from the WCSB south to the Northwest and California. The Northwest
Pipeline is a bi-directional pipeline, with gas flowing into the pipeline from both ends in
British Columbia and the Rockies, and flowing out of the pipeline at various points in
between. Idaho therefore receives a mix of Canadian and Rockies gas from the Northwest
Pipeline, with the actual composition varying depending on relative pricing in the two
supply basins.37
Intermountain Gas (IGC) notes that regional cooperation is integral to their natural gas
service and planning. Their gas supplies come from the north, sourced out of western
Canada, and also from the southeast, mainly from the gas production areas in the Four
Corners/Rockies region. The ability to obtain natural gas from two distinct and separate
regions provides a supply security, and also provides some pricing flexibility, since the cost
of the commodity, its transmission cost, and storage costs will vary depending on the season
and customer usage. While their physical location provides IGC with operating and cost
advantages, the issue of ‚regional energy landscape‛ speaks to how best to supply the Pacific

36 http://www.ferc.gov/about/ferc-does.asp
37 http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/western.html

2012 Idaho Energy Plan 37
Northwest’s energy needs. While much is done to coordinate the electrical system in Idaho, a
much broader view coordinating all energy sources and systems needs to be developed.
Historically, natural gas prices in Idaho have been lower than those in most of the U.S. due to
limited transportation capacity that prevents gas from the WCSB and Rocky Mountain
regions from being diverted to major markets in the eastern U.S. Recently, transportation
capacity additions allowed gas once captive to the Northwest to flow to higher price markets
in California and the Midwest. This has reduced Idaho’s location-based price advantage and
subjected Idaho customers to similar gas price increases and volatility experienced by the rest
of North America. This trend is expected to continue, with three major eastbound pipeline
expansions currently in development. These pipeline expansions, coupled with increasing
demand in the Northwest and across North America, are expected to erode the price
advantage Idaho has historically enjoyed.38
Idaho has two investor owned utilities, Avista Utilities and Intermountain Gas Company,
which provide the majority of natural gas service in Idaho. Some additional gas service is
provided by Questar Gas.
AVISTA UTILITIES
Avista manages its natural gas operations through two operating divisions. The North
Division covers about 26,000 square miles, primarily in eastern Washington and northern
Idaho. Over 840,000 people live in Avista’s Washington/Idaho service area. The North
Division has about 74 miles of natural gas distribution mains and 5,000 miles of distribution
lines. Natural gas is received at more than 40 points along interstate pipelines and distributed
to over 219,000 residential, commercial, and industrial customers. The South Division serves
four counties in southwest Oregon and one county in northeast Oregon. The combined
population of these two areas is over 480,000 residents. The South Division consists of about
67 miles of natural gas distribution mains and 2,000 miles of distribution lines. Natural gas is
received at more than 20 points along interstate pipelines and distributed to over 95,000
residential, commercial, and industrial customers. Of the Avista customers who purchase
directly for delivery to their home or business (‚non-transportation‛), approximately 60
percent are residential. 39

Avista can access both Canadian and Rocky Mountain supplies via firm transportation
capacity it holds on the Northwest and GTN pipelines. In addition, Avista hold rights to the
Jackson Prairie and Plymouth storage facilities in Washington. Avista’s latest natural gas IRP
indicates that the number of customers in Washington and Idaho is projected to increase at
an average annual rate of 2.2 percent with demand growing at a compounded average
annual rate of 1.0 percent. In Oregon, the number of customers is projected to increase at an
average annual rate of 2.5 percent, with demand growing 1.4 percent per year.40

38 For more details, please see: IPUC Annual Report 2010 Idaho Natural Gas Utilities,
http://www.puc.state.id.us/ar2010/gas.pdf
39 Avista Utilities Natural Gas 2009 IRP:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2009%20Natural%20Gas%20IRP-
FINAL.pdf
40 Ibid., page 3.10

2012 Idaho Energy Plan 38
INTERMOUNTAIN GAS COMPANY (IGC)
Intermountain Gas is a natural gas distribution company, which was incorporated in 1950
and began serving its first five customers on December 31, 1955. Intermountain Gas
Company now serves all of southern Idaho; a total of 74 cities across 60,000 square miles.
They serve approximately 280,000 residential, 30,000 commercial, and 114 industrial
customers. Industrial and transportation customers, including potato processors, chemical
and fertilizer manufacturers, and electronics companies make up 43 percent of sales on IGC’s
system. The residential and commercial sectors comprise 38 and 19 percent, respectively.
The major natural gas electrical generation facilities are located in Mountain Home and near
Fruitland, Idaho, and are not IGC customers, but rather are ‚direct connect‛ customers of
Williams Northwest Pipeline Company. IGC is a local distribution company, which connects
to the Williams Northwest Pipeline across southern Idaho, and delivers gas to customers. 41
In addition to owning firm capacity on interstate pipelines, IGC owns and operates the
Nampa liquefied natural gas storage facility, and also owns storage rights at the Jackson
Prairie and Plymouth facilities. IGC projects that peak demand on its system will grow from
416 MDth/d in 2007 to 494 MDth/d in 2011, which is an annual growth rate of 4.3 percent.42
IGC is a wholly-owned subsidiary of MDU Resources Group (MDU), located in Bismarck,
North Dakota. MDU purchased IGC from its private owners in 2008.
QUESTAR GAS
Questar Gas provides natural gas service to residential, commercial and industrial customers
in northern, central and southwestern Utah, southwestern Wyoming and southeastern Idaho.
Questar Gas, based in Salt Lake City, provides natural gas service to approximately 1,750
customers in Franklin County in southeastern Idaho.43 Idaho has elected to allow the Utah
Public Service Commission to regulate Questar’s activities in its small Idaho service area.
Figure 2.8 shows the major natural gas infrastructure in Idaho and Idaho utility service
territories.

41 http://www.intgas.com/aboutigc/aboutigc.html
42 Intermountain Gas 2010 IRP:
http://www.puc.idaho.gov/internet/cases/gas/INT/INTG1004/201009012010%20IRP.PDF
43 http://www.questargas.com/AreaMap/ServiceMap.php

2012 Idaho Energy Plan 39
Figure 2.8. Western U.S. Interstate Natural Gas Pipeline System and Natural Gas Service
Territories

Source: Northwest Gas Association: http://www.nwga.org/index.php?option=com_content&view=article&id=153:service-area-
map&catid=31:about-us&Itemid=44

2012 Idaho Energy Plan 40
2.2.3. Petroleum and Transportation Fuels
Idaho has a relatively small fuel market, lack of refineries and limited pipeline infrastructure.
The Chevron pipeline connects Salt Lake City with Pocatello, Burley, and Boise before
continuing on to Pasco, Washington. A single pipeline then continues from Pasco to
Spokane, Washington, delivering fuel to northern Idaho. Additional supplies originate at
three refineries in the Billings, Montana area and are transported to Spokane via the
Yellowstone Pipeline. A small portion of Idaho’s supply originates at refineries in
northwestern Washington. This fuel is transported to Portland via the Olympic Pipeline,
where it is loaded onto barges and transported up the Columbia River-Snake River System to
Lewiston.

Figure 2.9. Transportation Fuel Pipelines and Refineries Serving Idaho

Source: U.S. Department of Energy’s Dark Mountain Western States Energy Assurance Exercise,
http://darkmountain.ea.govtools.us/documents/Overview_Oil_Industry.pdf
2.3. IDAHO RESOURCES
Idaho currently has no commercial coal, oil or natural gas resource extraction operations
(although natural gas exploration and test wells have been drilled and production is
anticipated to begin in late 2011.) Idaho does have a variety of renewable resources available
for potential development, including wind and small hydro power, geothermal, biomass, and
solar energy. Idaho does not have commercial nuclear generating assets or uranium
resources (although neighboring states and Canadian provinces do).
2.3.1. Fossil Fuels
Idaho currently has no in-state production of coal, natural gas, or petroleum, although active
exploration of natural gas is currently underway near Payette. Idaho’s current natural gas

2012 Idaho Energy Plan 41
and liquefied hydrocarbon products are imported from supply in the Western Canadian
Sedimentary Basin and the U.S. Rocky Mountains. Idaho also has no oil refineries, so all of
Idaho’s gasoline, diesel and other petroleum needs are served with imported refined
products, mostly via pipeline from refineries in Salt Lake City and Billings, Montana. Idaho
utilities do own coal-fired power plants that supply approximately 40 percent44 of Idaho’s
electricity; however, all of these plants are located in neighboring states. As a result,
approximately 70 percent45 of Idaho’s total end-use energy is derived from imported fossil
fuels.
Fossil fuels have historically been the least costly and most reliable source of energy. Yet
today, Idaho’s reliance on imported fossil fuels places the state’s economy at risk due to fuel
price volatility. Political instability in the Middle East and other areas of the world is now
directly felt in the pocketbooks of Idaho consumers through high and volatile oil prices.
Rising demand from rapidly-developing economies such as those in China and India are
placing increasing demand pressure on world crude oil, regional coal, and to a lesser extent
natural gas.
Coal is found in abundance in the United States, with the nation’s largest coal exporter
(Wyoming) and largest coal resources (Montana) in close proximity to Idaho. The increasing
attention paid to global climate change has led to mounting calls for federal regulation of
carbon dioxide and other greenhouse gas emissions, and the U.S Environmental Protection
Agency (US EPA) has been increasingly active in regulating power plant emissions. This
substantially impacts generation costs and available options today and in the future, creating
significant doubt regarding the viability of new coal based generation and the future of
existing coal-fired generation. New technologies may alleviate these risks. Coal gasification –
the chemical conversion of coal into hydrogen and carbon monoxide gas – is a promising
technology that would facilitate carbon dioxide sequestration while simultaneously reducing
emissions of other criteria pollutants relative to conventional coal-fired steam facilities.
However, the technology has not yet been proven, and there is considerable uncertainty
about the ultimate cost of power plants relying on coal gasification.
The Rocky Mountain West, particularly Utah, Colorado, and Wyoming contains enormous
reserves of kerogen contained in sedimentary deposits, commonly referred to as ‚oil shale‛
The U.S. Geological Survey estimates that there may be approximately 3 trillion barrels of oil
equivalent in such deposits in Utah, Wyoming and Colorado, and possibly 1.5 trillion barrels
of recoverable oil equivalent. Although this resource is not presently being commercially
developed, any future development would likely have significant implications for regional
oil supply, price, and economic development.
The fossil energy resources in the western U.S. (conventional and unconventional gas and oil
and coal) are considerable. Although only a very small fraction of these resources are within
Idaho, our proximity to these supply areas and transmission systems means that

44 Investor owned Utilities Information: Each utilities FERC Form 1 (http://www.ferc.gov/docs-
filing/forms.asp) and http://www.eia.gov/cneaf/electricity/page/eia861.html (for percent of Idaho load
served); for BPA
http://www.bpa.gov/power/pgp/whitebook/2010/WhiteBook2010_SummaryDocument_Final.pdf
45 Energy Information Administration SEDS, State Energy Data System Idaho (139.9 TBTUs production, 509
TBTUs consumption)

2012 Idaho Energy Plan 42
development of these resources will impact Idaho’s energy supplies and broader economic
prospects.
2.3.2. Hydroelectricity
Idaho has over 140 existing hydro plants with combined capacity of approximately 2,500
MW. The largest hydroelectric projects are the 1,167 MW Hells Canyon Complex owned by
Idaho Power and the 400 MW Dworshak dam operated by the U.S. Army Corps of Engineers.
Idaho dams produce approximately 1,300 aMW of electricity in an average year,
approximately half of Idaho’s 2010 electricity consumption.46 While Idaho’s most promising
hydroelectric sites have already been developed, an Idaho National Laboratory (INL) site-
based assessment study resulted in the identification of 373 additional Idaho hydro projects
having a combined capacity increase potential of 1,655 MW.47 Sixty-eight percent of these
projects are small in size, less than 5 MW, and include upgrades at existing hydropower sites
as well as newly identified potential sites listed in the INL assessment. Note that a wide
combination of attributes can result in a lower suitability factor. Multiple environmental and
regulatory considerations would reduce the likelihood that a site may be developed to its
physical potential.

Hydroelectric energy is renewable and emits no pollutants or greenhouse gases. However,
the amount of energy available in a given year can vary widely due to variations in rainfall
and mountain snowpack. The energy output profile is highly seasonal, peaking during the
spring runoff and declining in the late summer and fall. Recent analyses have also suggested
that climate changes can significantly alter hydro-generation through decreased snowpack
and the timing of snowmelt. New hydro resources without significant reservoir storage
would compound the seasonal nature of the Northwest’s existing hydro resource base,
potentially reducing their attractiveness relative to other resources.48
2.3.3. Wind
Wind energy is now responsible for nearly two and one-half percent49 of U.S. electricity
produced. Over 42,000 MW of nameplate wind was in operation at the end of June 2011,
with another 7,400 MW (nameplate) under construction.50 Idaho has experienced a wind
construction boom, growing from 75 MW at the end of 2008 to nameplate capacities of nearly
350 MW by mid-2011, with the total expected to reach nearly 500 MW by the end of 2011.51

46 Idaho Strategic Energy Alliance Hydropower Task Force Report, May 2009, Appendix F, Idaho Strategic
Energy Alliance Hydropower Task Force Report, May 2009, Appendix F
47 ‚U.S. Hydropower Resource Assessment for Idaho,‛ Alison M. Conner, et al., Published August 1998,
Idaho National Engineering and Environmental Laboratory,
http://hydropower.inl.gov/resourceassessment/pdfs/states/id.pdf
48 For more information please see the Idaho Strategic Energy Alliance Hydropower Task Force Report,
http://www.energy.idaho.gov/energyalliance/taskforce.htm and Idaho National Laboratory (INL) ‚U.S.
Hydropower Resource Assessment for Idaho‛, August 1998,
http://hydropower.inl.gov/resourceassessment/pdfs/states/id.pdf
49 Energy Information Administration, 2010 calendar year statistics from EIA-923 January - December
50 American Wind Energy Association (AWEA)
http://www.awea.org/learnabout/publications/reports/upload/2Q-2011-Public-Market-Report.pdf
51 Renewable Northwest Project, http://rnp.org/project_map

2012 Idaho Energy Plan 43
An additional 150 MW (nameplate capacity) of wind projects are under construction in Idaho
as of August 2011.52
Approximately four percent of Idaho’s total nameplate capacity 2010 generation capacity
came from wind generation, and its share should more than double to around 10 percent in
2011.53 Recent wind mapping studies estimate that Idaho has approximately 25,000 MW of
wind generation potential, the 13th largest potential in the U.S.54 The most readily available
wind resources in Idaho are located in the Snake River Plain and the surrounding hills and
ridges. The eastern end of the Plain in particular has seen high interest for wind
development.55
Wind energy produces no emissions of criteria pollutants or carbon dioxide and it reduces
the need to burn fossil fuels. However, it is an intermittent resource producing energy only
when the wind blows. Because of this intermittent nature, wind generators cannot be
dispatched or counted on to produce at their nameplate capacity during times of high energy
demand, or at any other particular time for that matter. The consequence is that dispatchable
resources must be ready to meet actual customer loads before the wind picks up and after it
dies down. As a result, only about five percent of a wind generator’s nameplate generation
capacity is counted as firm capacity in a utilities resource planning.56
2.3.4. Geothermal
Geothermal energy utilizes the earth’s abundant heat and is typically harvested by drilling
wells into reservoirs and pumping hot water to the surface. The heat is extracted and used to
generate electric power or to provide space heating, then the water is injected back into the
reservoir to be reheated. Idaho ranks high in its potential for geothermal resources. An
estimated 855 megawatts of near-market, reasonably priced geothermal power potential
exists in Idaho.57 Only California and Nevada rank higher than Idaho.
Currently Idaho has one operating geothermal power plant at Raft River in Cassia County.
This plant is designed to provide 13 MW (net) of capacity. The Raft River project expects to
add two or more 13 MW power plant modules in the coming years and may one day produce
up to 100 MW. In May 2010, the IPUC approved a power purchase agreement for
approximately 22 MW of generation from the Neal Hot Springs Geothermal Project located in
eastern Oregon. The Neal Hot Springs project is under development and is expected to begin
commercial operations in 2012.58

52 Renewable Northwest Project, http://rnp.org/project_map
53 See footnote 44 for source of 2010 statistic; 2011 statistic is estimated based on the growth in nameplate
capacity referenced in footnote 46.
54 Wind Task Force Initial Mandate Response to the Idaho Strategic Energy Alliance, February 2009, page 7.
55 http://awea.org/learnabout/publications/upload/1Q-11-Idaho.pdf
56 The Northwest Power Planning Council Sixth Northwest Conservation and Electric Power Plan
Appendix D: Wholesale Electricity Price Forecast, page D-8,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan_Appendix_D.pdf
57 Western Governors’ Association, Clean and Diversified Energy Initiative, Geothermal Task Force Report,
January 2006.
58 http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf (Page 33)

2012 Idaho Energy Plan 44
Idaho has a number of sites that can be developed for geothermal power generation. U.S.
Geothermal’s Neal Hot Springs project incorporates new power plant technology providing
for modularity, leading to lower cost and a higher efficiency power conversion cycle. The
most advanced potential sites in Idaho are the Crane Creek area near Weiser in Washington
County, the Roystone Hot Springs area near Sweet, and the Magic Reservoir area near
Hailey. Given sufficient exploration, thermal springs and geothermal resources located in
Blaine, Owyhee, Lemhi, Valley, Bannock, and Camas counties may provide future power
generation development opportunities for Idaho.59
The benefits of geothermal energy include reliable baseload 24 x 7 power generation,
sustainable low operating costs, superior online availability, and minimal environmental
impacts. An obstacle to development of this power source is the upfront risks associated
with drilling expensive wells to prove a reservoir. Continued long-term federal tax incentives
have been necessary to overcome these risks. Lower-temperature geothermal resources are
also used in many parts of Idaho for various end uses such as space heating, aquaculture,
greenhouses, and recreation. These applications are already substantial and have undergone
expansion as demonstrated by recently bringing geothermal space heating to the Boise State
University campus in the new College of Business and Economics building.60
2.3.5. Bioenergy
Idaho has abundant biomass resources that can be converted to energy. Sources of potentially
sustainable biomass discussed below are forest residues, solid waste, oilseeds, and
agricultural residues. A brief conclusion highlights the emerging opportunity of liquid
transportation fuels from biomass, and the two major challenges for expanding the use of
bioenergy and biofuels: high cost with no consideration of the full range of benefits, and
public acceptance.61
Forest Residues.62 Positioned behind hydropower, wood bioenergy is Idaho’s second largest
homegrown energy product, producing eight percent of the energy consumed in the state.63
Some 40,000 households in Idaho (seven percent of the total) use wood as their primary
heating source.64 Direct combustion of woody biomass in a steam boiler produces thermal
energy to heat buildings and to drive industrial processes, and can also generate electricity.
The University of Idaho has been heating the main campus in Moscow with sawmill residues

59 Idaho Strategic Energy Alliance Geothermal Task Force Report, August 2009,
http://www.energy.idaho.gov/energyalliance/d/Geothermal%20Packet.pdf
60 For more information please see the Idaho Strategic Energy Alliance Geothermal Task Force Report,
http://www.energy.idaho.gov/energyalliance/taskforce.htm
61 Prepared by the Forestry/Biomass and Biofuels Task Forces, Idaho Strategic Energy Alliance,
http://www.energy.idaho.gov/energyalliance/taskforce.htm
62 Unless otherwise noted, data are from Wood Bioenergy: Homegrown Baseload Energy for Idaho,
Forestry/Biomass Task Force Report, Idaho Strategic Energy Alliance.
http://www.energy.idaho.gov/energyalliance/d/forest_packet.pdf
63 Energy Information Administration. State Energy Data System (SEDS). Table CT2. Primary Energy
Consumption Estimates, Selected Years, 1960-2009, Idaho. U.S. Dept. of Energy, Washington, D.C.
http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
64 U.S. Census Bureau. Idaho Selected Housing Characteristics.
http://factfinder.census.gov/servlet/ADPTable?_bm=y&-geo_id=04000US16&-
qr_name=ACS_2009_5YR_G00_DP5YR4&-ds_name=ACS_2009_5YR_G00_&-_lang=en&-_sse=on

2012 Idaho Energy Plan 45
for more than two decades, saving Idaho taxpayers upwards of $2 million per year,
depending on the price of natural gas that would otherwise heat campus buildings. With the
help of federal cost-share grants, several Idaho public schools have switched from fossil
energy to heating with modern wood boilers that meet air quality standards. Because
sawmill residues are already fully utilized, additional energy depends on other woody
biomass resources, or retrofitting existing uses for potential cogeneration of electricity. There
is an abundance of forest residues left in the woods after timber harvesting. This logging
slash consists primarily of tree tops and branches left in the woods to decompose or which is
piled and burned to reduce fire hazards. Although it is costly to transport this low-value
material off-site to an energy production facility, there is enough of it to sustainably provide
500,000 dry tons per year. This is sufficient to either heat 25 district energy systems
comparable in size to the University of Idaho, or to produce 50 MW of electricity, enough for
50,000 homes. Three-fourths of Idaho’s forest resources are on federal lands, but they provide
less than ten percent of the timber harvested each year. Many federal forests are overstocked
and thinning to reduce wildfire hazards is desirable. However, removing small-diameter
hazard trees is costly, and while the amount of thinning has increased markedly over the past
decade, much more of it is needed to address forest health and wildfire risks on federal lands.
If thinning occurs at the scale needed to modify wildfire behavior, another 500,000 dry tons
per year of woody biomass would be available as an energy resource. There are currently
eight community-based groups in Idaho working with local national forest managers to
develop projects for improving forest conditions.65 These collaborative groups are the best
way forward for developing the social acceptance needed to support active management of
national forests and removal of additional timber.
Solid Waste. The decomposition of biomass produces biogas, a mixture of methane and trace
constituents. Idaho has three biogas production sources that are viable resources: waste
streams from food processing plants, dairy waste, and landfills. Food processing plants offer
a very small potential. The largest potential is to capture biogas from the state herds totaling
600,000 dairy animals, most of them in the Magic Valley where the generation of 10 MW from
the dairy waste biogas resource is possible. The Ada County Landfill generates 3.2 MW from
waste-to-gas operations, and Kootenai County’s landfill generates a smaller amount from
leachate (i.e., liquid draining from a landfill). Because wood and plastic deteriorate slowly,
these materials have low biogas potential and need to be sorted out from biogas operations.66
In a few larger municipalities some wood is being sorted out of landfills and sold to biomass
processing facilities.
Oilseeds and Agricultural Residues. Idaho citizens used over 600 million gallons of gasoline
and 520 million gallons of diesel fuel in 2008. Except for a small amount of biodiesel, none of
this liquid fuel is produced in-state. Idaho’s biomass resources could help meet the
impending need for renewable liquid transportation fuels driven by federal policy.67 Federal
programs support corn-based ethanol and mandate the future production of advanced

65 See ‚Idaho Forest Restoration Partnership: A Network of Collaboration‛ website.
http://www.idahoforestpartners.org/main.html
66 See Biogas Generation and Use in Idaho, Biogas Task Force Report, Idaho Strategic Energy Alliance.
http://www.energy.idaho.gov/energyalliance/d/biogas_resources_report.pdf
67 See Idaho Biofuels Task Force Report, Idaho Strategic Energy Alliance.
http://www.energy.idaho.gov/energyalliance/d/biofuels_report.pdf

2012 Idaho Energy Plan 46
biofuels (i.e., other than corn ethanol).68 Agricultural science is reducing the residue left in the
fields after harvest by developing shorter wheat stalks.
Transportation Fuels. Technologies are emerging that use heat, chemicals, and
microorganisms to process cellulose-based materials into fuels and chemicals, thus paving
the way to using forest and agricultural residue streams, as well as significant portions of
municipal and industrial solid waste. The potential for developing aviation jet fuel from
biomass resources in the Pacific Northwest is a promising endeavor in which half of the new
jobs would be in feedstock production.69 The University of Idaho is involved in a four-state
research consortium called the Northwest Advanced Renewables Alliance (NARA) that will
help turn the promise of liquid jet fuel from wood into reality.
Challenges. Two factors inhibit the use of biomass to produce energy: 1) Costs are not
competitive with energy produced from other resources including fossil (petroleum, natural
gas, and coal) and hydroelectric. This reflects high capital investment costs more than
operating costs. However, the benefits of energy security and local employment
opportunities are generally not factored into cost comparisons. Neither are benefits from
avoided costs associated with wildfire suppression, reduced waste streams, landfills, and
noxious odors, as well as reduced greenhouse gas emissions from substituting bioenergy for
fossil energy. 2) Public perception is that wood bioenergy may be unsustainable or
environmentally harmful, and that biofuels may damage cars and trucks. Additionally,
advocacy groups are watching carefully the additional cost of ‚green energy‛ that utilities
add to their portfolios of energy resources.
2.3.6. Nuclear
Nuclear power production continues to contribute substantially to United States electricity
supply, with approximately 20% of the nation’s electricity provided by 104 nuclear reactors
operating in 31 states.70 Over the past two decades, the operational performance of these
reactors has improved markedly71, as evidenced by an increase in operational capacity factors
from approximately 53% in 1980 to well over 90% today.72 This improvement, and the related
safety record of the existing units, suggests maturity in the conduct of U.S. nuclear electric
generation in general. Spurred by financial incentives authorized by the 2005 Energy Policy
Act, new streamlined licensing designed to maintain safety while reducing the risk of
construction delays, and generally positive public sentiment about nuclear power, there has
been increasing business interest in expanding nuclear power deployment in the United
States. Since 2007, there have been 16 license applications filed to build new nuclear reactors
in the United States.73

68 See Renewable Fuels Standard (RFS), page 2 in, Energy Independence and Security Act of 2007: A Summary of
Major Provisions. CRS Report for Congress, Order Code RL34294, Congressional Research Service,
Washington, D.C. http://energy.senate.gov/public/_files/RL342941.pdf
69 See Powering the Next Generation of Flight. Sustainable Aviation Fuels Northwest, 2011 Report, produced by
Climate Solutions, Kirkland, WA. An estimate of total potential jobs in a robust sustainable industry
producing biofuel for jet aircraft is not provided. Report is available online at http://www.safnw.com/
70 http://www.world-nuclear.org/info/inf41.html
71 Nuclear Energy Institute, http://www.nei.org/keyissues/safetyandsecurity/
72 http://www.nei.org/resourcesandstats/nuclear_statistics/usnuclearpowerplants/
73 http://www.world-nuclear.org/info/inf41.html

2012 Idaho Energy Plan 47
Although several developers have expressed interest in siting commercial nuclear generating
stations in Idaho and surrounding states that impact Idaho’s energy supply, there are no firm
plans involving merchant generators or Idaho utilities to do so at the present time.
Technology maturity, risk mitigation through demonstration and federal financial assistance,
public sentiment post-Fukushima accident, greenhouse gas emissions policy, water
availability, availability and proximity to transmission, and notably the cost of alternative
generation such as natural gas-fired generation, will all factor heavily on any decision by
utilities to pursue commercial nuclear generation in Idaho. Debate related to the desirability
and feasibility of nuclear energy deployment often centers around concerns related to cost
compared to alternatives, public acceptance, and safety. Regarding safety, in the United
States, the Nuclear Regulatory Commission (NRC) is responsible for regulating nuclear
power plants and ensuring that the plants comply with safety requirements established by
law. The NRC will track compliance of those plants in the categories of reactor safety,
radiation safety, and security, and that performance and assessment data can be found on the
NRC website.74 Cost for new nuclear construction in the United States is difficult to
accurately gauge, as there has not been new construction in this country for decades, leaving
some uncertainty regarding equipment and construction costs. This uncertainty can be seen
in widely varying cost estimates; ranging from the very high75 to relatively competitive.76 One
can also find a number of public opinion polls showing quite different states of acceptance of
nuclear power generation, ranging from very positive77 to very negative.78 Therefore, when
considering the desirability of nuclear-electric generation, as well as with any generation
approach, decision makers and citizens are encouraged to seek current information based on
facts from credible sources that they trust.
Aside from resources that support the deployment of commercial nuclear electric production,
Idaho has important attributes and resources that enable growth in nuclear energy-related
business. The lead nuclear energy national laboratory for the United States, the Idaho
National Laboratory (INL), is already one of Idaho’s largest employers.79 INL activities and
facilities related to energy systems testing, nuclear fuel management, and a highly skilled
nuclear savvy workforce are significant resources in attracting nuclear energy service
business to Idaho.

Idaho’s proximity to major uranium resources and low electricity prices could also attract
nuclear fuel service, component testing, and other energy-intensive operations. Areva has
been authorized by the NRC to enrich uranium to manufacture nuclear fuel for commercial

74 United States Nuclear Regulatory Commission, http://www.nrc.gov/reactors.html
75 Nuclear Power in a Post-Fukushima World‛, Schneider et al, WorldWatch Institute (2011),
http://www.worldwatch.org/system/files/WorldNuclearIndustryStatusReport2011_%20FINAL.pdf
76 ‚Projected Costs of Generating Electricity‛, International Energy Agency (2010),
http://www.iea.org/press/pressdetail.asp?PRESS_REL_ID=298
77 ABC News / Washington Post Poll, April 14-17, 2011, http://www.washingtonpost.com/wp-
srv/politics/polls/postpoll_04172011.html
78 www.langerresearch.com: http://abcnews.go.com/Politics/nuclear-power-opposition-grows-japan-
earthquake-abc-news/story?id=13412262
79 ‚Boise State Research Details Positive Economic Impacts from INL Operations‛, December 9, 2010, Boise
State University Update, http://news.boisestate.edu/update/2010/12/09/boise-state-research-details-positive-
economic-impacts-from-idaho-national-laboratory-operations/

2012 Idaho Energy Plan 48
power reactors80 and recently secured a federal license to build and operate a gas centrifuge
uranium enrichment plant, the Eagle Rock Enrichment Facility, near Idaho Falls. They plan to
begin construction in 2012. This project is estimated to create 4,800 jobs and inject billions of
dollars into the regional economy.81 The announcement that a uranium enrichment facility
will be sited near Idaho Falls is an example of the opportunity in serving global nuclear
energy markets from Idaho.

2.3.7. Solar
Solar energy is harnessed through a few different technologies. Solar Photovoltaic or PV
systems convert sunlight to electricity. These systems may be small systems on individual
homes and businesses or large central generating utility systems. Solar hot water systems use
energy from the sun to directly heat water for use in homes and buildings. Concentrating
Solar Power (CSP) systems are large utility-scale plants that concentrate sunlight to heat a
working fluid, eventually turning a conventional steam turbine. All of these systems work
well in Idaho’s sunny climate.
Solar energy is currently used in the state for specific applications such as water pumping,
thermal heating, and electricity production in remote locations that would be difficult to
serve with energy from the electricity grid. Increasingly solar is used in Idaho for grid inter-
tied applications, offsetting facility energy use. Currently there are no utility-scale PV or CSP
installations in the state.
Southwest Idaho’s solar potential is very similar to that of the desert southwest, which has
the highest solar potential in the United States. This allows Idaho many opportunities for
solar power applications; however, despite its excellent solar resource potential, Idaho is
behind much of the rest of the country in solar installations. It is estimated that a total of 1 to
1.2 MW of solar PV is currently installed in Idaho. In 2010 alone, the Solar Energy Industry
Association estimates 1,737 MW of PV were installed in the US.82
In 2011, the Office of Energy Resources administered a ‚Solar Panels for Schools‛ program
that funded installation of PV systems at six Idaho schools to help offset energy consumed by
the schools and encourage education on solar power. A few large-scale PV utility plants are
also in the works for Idaho. These facilities will generate electricity to be delivered directly to
the utility grid. 83
A few of the benefits of solar include utilization of an abundant Idaho resource, no
greenhouse gas emissions, distributed generation, and potential for an additional

80 Associated Press, ‚Areva wins federal license for Idaho uranium plant. Idaho Falls, Idaho,‛ October 12,
2011, http://moneywatch.bnet.com/investing/news/french-firm-wins-license-for-idaho-uranium-
plant/6314091/
81 ‚AREVA Awarded DOE Loan Guarantee for Idaho Enrichment Facility.‛ (2010, May 21). Retrieved
October 12, 2011, from AREVA: http://www.areva.com/EN/news-8390/areva-awarded-doe-loan-guarantee-
for-idaho-enrichment-facility.html
82 Solar Generation Feasibility Study for Southwest Idaho, Black & Beach, August 2008; Idaho Power
Company’s Draft 2009 Integrated Resource Plan

83 Idaho Office of Energy Resources: http://www.energy.idaho.gov/stimulus/solar_program.htm and
http://www.idahostatesman.com/2011/01/14/1488700/nine-idaho-schools-get-solar-power.html

2012 Idaho Energy Plan 49
manufacturing industry in the state. Though solar is an intermittent resource, its
intermittency is consistent, and in general its production potential lines up well with high
demand (mid-day). As control systems continue to improve, there is good likelihood for solar
to play an important role.
Cost is currently the major barrier to installation of photovoltaic (PV) systems, although the
price of PV systems continues to decline rapidly, making wide-scale use of solar power for
electricity generation less prohibitive. Cost is also the primary barrier for solar hot water
systems. As the costs of solar systems continue to decrease, there is good likelihood for solar
to play an important role.
Another important barrier to Idaho’s distributed PV and solar hot water market is the lack of
trade development. Work is being done at the Division of Building Safety to consider a
specialty solar installer license in the state to recognize the specific trade skills needed for
solar installation and to develop a base of quality installation professionals. 84
2.3.8. Hybridization
Recent advances in gas turbine technology and advanced computing and control
technologies have opened the door for hybridization of energy systems and resources.
System hybridization involves coupling various energy resource inputs to generate one or
more energy products. Early generation hybrid systems now deployed couple solar and
natural gas, and planned systems that couple solar, natural gas, and wind inputs for
electricity generation show significant benefits in overall system efficiency and transmission
stability under high intermittent generation scenarios. Future hybrid systems being
researched combine fossil, renewable, and nuclear resources to produce both electricity and
synthetic transportation fuels. System hybridization (combining the various resources listed
above) may provide additional options to best utilize Idaho resources in a manner consistent
with stated policy objectives.
2.3.9. Conservation, Energy Efficiency, and Demand Response
Conservation, energy efficiency, and demand response are not natural resources in the same
sense as fossil fuels or hydroelectric power, but they do constitute another economically
attractive resource that electric and natural gas utilities can call upon to meet their customers’
energy needs. ‚Conservation‛ refers to consumers acting to reduce their use of
energy‐consuming devices. An example would be a consumer remembering to turn off the
lights when leaving a room. ‚Energy efficiency‛ refers to processes that provide the same
energy service but consume less electricity. An example would be switching from
incandescent to compact fluorescent light bulbs. ‚Demand response‛ refers to customers
temporarily altering their energy‐consuming behavior in response to signals from the utility
or grid operator. An example would be lighting fixtures that can be dimmed remotely by
utility personnel during times of high electricity demand. Collectively, these resources are
referred to as ‚demand‐side management‛ (DSM), although the terms ‚conservation‛ or
‚efficiency‛ are sometimes used to refer to all DSM measures.

84 For more information, please see Idaho Strategic Energy Alliance Solar Task Force Report, 2010,
http://www.energy.idaho.gov/energyalliance/d/solar_report.pdf

2012 Idaho Energy Plan 50
In the future, according to the Northwest Power and Conservation Council (Power Council)
estimates, electricity load is expected to grow by about 7,000 average megawatts between
2009 and 2030 in the Northwest, growing at about 335 average megawatts, or 1.4 percent, per
year. Residential and commercial sector electricity use accounts for much of the growth due
to an anticipated increase in air conditioning and consumer electronics. The Power Council’s
most recent estimate, published in the Sixth Northwest Electric Power and Conservation
Plan, suggests that achievable potential conservation is 4,000 to 6,000 average megawatts. Of
that, approximately 2,500 average megawatts will require new initiatives, programs, market
transformation efforts or progress toward adoption of codes and standards. Idaho accounts
for approximately 15 percent of regional electricity load, so a simple allocation suggests that
there are approximately 375 to 600 aMW of conservation in Idaho that could be acquired over
the next 20 years. The Power Council reiterates that improved efficiency of electricity use is
by far the lowest-cost and lowest-risk resource available to the region.85

Many states such as Washington, Oregon, California, and New York have made strong
commitments to energy conservation and efficiency. Despite retail electricity rates lower than
any other state86, Idaho has also recently made tremendous gains in securing cost-effective
conservation and as a state is currently ranked 26th in efficiency efforts by the American
Council for an Energy Efficient Economy87.

Not every conceivable energy conservation measure is cost effective. Cost‐effectiveness of a
conservation measure means that the lifecycle energy, capacity, transmission, distribution,
water, and other quantifiable savings accruing to Idaho citizens and businesses exceed the
direct costs of the measure to the utility and participant. Beyond energy savings,
cost‐effective conservation provides economic benefits to Idaho utilities when they can earn a
rate of return on this investment. Conservation reduces the energy bills paid by consumers,
freeing up dollars to be spent on other goods and services and representing, in economic
terms, an increase in disposable income. Moreover, implementation of conservation
measures requires a local labor force. Thus, increased investment in conservation not only
reduces total energy expenditures but shifts a portion of the remaining expenditures from
imported fuel to locally provided goods and services.
Demand response programs have grown beyond the long-standing irrigation load control
programs to include large commercial and industrial customers in Idaho. At least two
significant factors should be considered as these programs develop. One is to solidify
methods by which demand response grows A great deal of forecasting is required in demand
response and it is possible to overestimate actual needs. Second, with the expansion of
demand response programs into commercial applications, it is necessary to carefully track

85 Northwest Power Planning Council 6th Power Plan, February 2010,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
86 Northwest Power and Conservation Council. (2010). Sixth Northwest Conservation and Electric Power Plan
(No. Council Document 2010-09). Retrieved from
http://www.nwcouncil.org/energy/powerplan/6/default.htm
87 ACEEE Energy Efficiency Rankings by State, http://www.aceee.org/node/820

2012 Idaho Energy Plan 51
implications of these programs have on occupant comfort and productivity to avoid negative
impressions of the program.88
The following tables show Idaho’s current energy efficiency initiatives and energy-related
regulations.
Table 2.1. Idaho's Current Energy Efficiency Incentives
Idaho's Energy Efficiency Financial Incentives
Non-Profit Grant Program

BEF - Solar 4R Schools
Personal Deductions

Insulation Income Tax Deduction

Residential Alternative Energy Tax Deduction
Property Tax Incentive

Property Tax Exemption for Wind and Geothermal Energy Producers
State Bond Program

Renewable Energy Project Bond Program
State Loan Program

Low-Interest Energy Loan Programs
Utility Loan Programs

Idaho County Light & Power Cooperative Association Loan Program

Idaho Falls Power - Commercial Energy Conservation Loan Program

Idaho Falls Power - Energy Efficient Heat Pump Loan Program

Idaho Falls Power - Residential Energy Efficiency Loan Program

Idaho Falls Power - Residential Weatherization Loan Program

Inland Power & Light - Loan Program for Energy Efficiency

Kootenai Electric Cooperative - Loan Program for Energy Efficiency

Raft River Electric Cooperative - Loan Program for Energy Efficiency
Utility Rebate Programs

Avista Utilities (Electric) - Commercial Energy Efficiency Incentives Program

Avista Utilities (Electric) - Commercial Lighting Energy Efficiency Program

Avista Utilities (Electric) - Residential Energy Efficiency Rebate Programs

Avista Utilities (Gas and Electric) - Commercial Food Equipment Rebates

Avista Utilities (Gas) - Commercial Energy Efficiency Incentives Program

Avista Utilities (Gas) - Residential Energy Efficiency Rebate Programs

City of Bonners Ferry - BPA Rebate Program for Energy Efficiency

City of Plummer - Rebate Program for Energy Efficiency

88 For more information please see the Idaho Strategic Energy Alliance Energy Efficiency and Conservation
Task Force Report, http://www.energy.idaho.gov/energyalliance/taskforce.htm

2012 Idaho Energy Plan 52

Clearwater Power - Rebates for Energy Efficiency

Idaho Falls Power - Commercial Energy Conservation Rebate Program

Idaho Falls Power - Residential Energy Efficiency Rebate Program

Idaho Power - Easy Upgrades for Simple Retrofits Rebate Program

Idaho Power - Irrigation Efficiency Rewards Rebate Program

Idaho Power - Large Commercial Custom Efficiency Program

Idaho Power - New Building Efficiency Program

Idaho Power - Rebate Advantage for New Manufactured Homes

Idaho Power - Residential Energy Efficiency Rebate Programs

Intermountain Gas Company (IGC) - Gas Heating Rebate Program

Rocky Mountain Power - Energy FinAnswer

Rocky Mountain Power - FinAnswer Express

Rocky Mountain Power - Residential Energy Efficiency Rebate Program

Salmon River Electric Cooperative - BPA Energy Efficiency Rebate Program
United Electric Cooperative - Energy Efficiency Rebate Program

2012 Idaho Energy Plan 53

Table 2.2. Idaho's Current Energy Efficiency Related Regulations
Idaho's Energy Efficiency Rules, Regulations & Policies
Building Energy Code

Idaho Building Energy Code
Energy Standards for Public Buildings

Energy Efficiency Standards for Public Buildings
Net Metering

Avista Utilities - Net Metering

City of Bonners Ferry - Net Metering

Clearwater Power - Net Metering

Fall River Rural Electric Cooperative - Net Metering

Idaho County Light & Power Cooperative Association - Net Metering

Idaho Falls Power - Net Metering

Idaho Power - Net Metering

Inland Power & Light - Net Metering

Kootenai Electric Cooperative - Net Metering

Northern Lights, Inc. - Net Metering

Raft River Electric Cooperative - Net Metering

Rocky Mountain Power - Net Metering

Salmon River Electric Cooperative - Net Metering

Wells Rural Electric - Net Metering
Solar/Wind Access Policy
Solar Easements
Source for Table 2.1 and 2.2: http://www.dsireusa.org/incentives/index.cfm?state=ID
and Idaho’s consumer-owned utilities

2.3.10. Energy Resource “Lessons Learned”
Between 2008 and 2011, the Idaho Strategic Energy Alliance, through the means of broad-
based task forces composed of Idaho and regional energy experts reviewed the electricity
energy options available to meet both the near and long-term requirements of Idaho
consumers. In summary, the reports resulting from these reviews identified the following:
1. All commercially-proven supply-side generating resources are much more expensive
than the utilities’ existing portfolios, and consequently, will put upward pressure on
the price consumers pay for electricity. Also, renewable resources such as wind,
geothermal, biomass and solar, are more expensive than conventional fossil-fuel
burning generators when the complete costs, such as capacity value and integration,
are included in the comparison. Significant technological breakthroughs will have to
be achieved to lower the cost of electricity produced by new generating resources.
2. The same holds true for electrical transmission. The time and expense required to site,
permit, and acquire corridors for new transmission lines, in addition to the cost of

2012 Idaho Energy Plan 54
construction and the associated environmental mitigation, will contribute to the
increase in the price Idaho consumers pay for electricity going forward.
3. The cost of new electric generating capacity needed to meet the growing demand for
electricity and the cost of compliance requirements related to environmental
regulations, reliability standards, and homeland security, combine to increase the cost
of production and delivery of electricity to all Idahoans.
4. Streamlining the siting and permitting of generation and transmission projects may
help mitigate some of the costs of future resource development, but the regulatory
improvements required to do this would have to be substantial.
5. Energy efficiency activities, as currently being pursued by the utilities and the state,
not only reduce participating utility customers’ total energy costs but have the added
benefit of reducing the long-term cost of energy supplies to Idahoans. Investments in
energy efficiency also result in local economic development benefits such as support
of engineering firms, wholesalers, retailers, and contractors to meet the market
demand for more efficiency equipment, material, appliances, and supplies.

In general, with the exception of conservation, energy efficiency, demand response, fossil
fuels, and limited hydroelectric development, Idaho’s resources are generally not cost
competitive with resources available from other states in meeting Idaho consumers’ electric
energy requirements. This being said, the existence of renewable portfolio standards in states
within the Western Interconnection make these resources attractive options for export. So, the
following efforts have been undertaken by Idaho’s state agencies, Idaho’s investor owned
utilities, and the Idaho Legislature:

1. Increased emphasis on conservation (energy efficiency and demand reduction) in
electricity usage and a commitment by the Governor to emphasizing energy
efficiency in all state buildings and facilities.
2. Adoption of the 2009 International Building Code for Idaho.
3. Idaho K-12 Energy Efficiency Project funded through the American Recovery and
Reinvestment Act (ARRA) (performed 894 school energy audits and implemented
energy efficiency measures with the potential of saving over 200 million kWh
annually.)89
4. Boise State University was awarded over $2.8 million dollars from the Department of
Energy to develop a project planning tool based on geographic information systems
that optimizes siting for utility-scale solar developments.90
5. The CAES Energy Efficiency Research Institute (CEERI), headquartered at Boise
State, was awarded $1.5 million by the U.S. Department of Energy to train
engineering students in energy efficiency and to provide energy audits to mid-sized
industrial facilities in the Northwest.91
6. The U.S. Department of Energy awarded Boise State a grant of $4.9 million over the
next five years to establish a National Geothermal Data System due to the efforts of

89 Office of Energy Resources JFAC Presentation, February 2, 2011 -
http://legislature.idaho.gov/budget/JFAC/presentations/OER.2011-02-
02.pdf#xml=http://legislature.search.idaho.gov/isysquery/ce0d72c5-d302-4a11-80e3-3aae1665798f/13/hilite/
90 Boise State University Campus News: http://news.boisestate.edu/update/2011/09/06/energy-policy-
institute-to-research-solar-siting-through-2-8-million-grant/
91 http://news.boisestate.edu/update/2011/09/15/boise-state-ceeri-receive-1-5-million-for-manufacturing-
efficiency-training/

2012 Idaho Energy Plan 55
members of the ISEA Geothermal Task Force. This system gathers existing
nationwide geothermal data into one location, housed at Boise State, and may
encourage additional geothermal development.92
7. Idaho electric investor owned utilities voluntarily report annually to customers on
their fuel mix in compliance with the recommendation in the 2007 Idaho Energy
Plan.
8. Investor owned utilities are actively engaged in state and regional efforts to increase
the capability of the western transmission grid through the Public Utilities
Commission, the Northern Tier Transmission Group, ColumbiaGrid, the Western
Governors Association, and others.
9. State vehicle fleets increased use of more fuel-efficient, flex-fuel, and alternative fuel
vehicles.
10. Forming the Office of Energy Resources to better recognize the importance of energy
issues to the state and moving these efforts from the Energy Division of the
Department of Water Resources, as recommended by the 2007 Idaho Energy Plan.

2.4. HISTORICAL PERFORMANCE IN KEY AREAS

2.4.1. Energy Rates Compared to Other States
The most important part of the story about Idaho’s current energy picture is the very low average
electricity and natural gas rates that Idahoans currently enjoy. Idaho’s low electricity rates are
largely the result of its hydro-thermal resource base. Baseload coal plants built in neighboring
states in the 1970s and 1980s provide a constant source of reliable, relatively low-cost power to
Idaho utilities. Large hydroelectric facilities on the Snake River and other tributaries of the
Columbia River provide energy as well as flexible and very low-cost capacity for meeting peak
demands. As a result, Idaho’s average electricity rates were the second lowest among the fifty
states in 2009 (see Figure 2.12).93

92 Boise State University Campus News: http://news.boisestate.edu/update/2009/10/05/ngds/
93 http://www.eia.doe.gov/cneaf/electricity/epa/average_price_state.xls: Total Electricity Price

2012 Idaho Energy Plan 56

Figure 2.10. Idaho’s Residential Natural Gas Prices Compared to Other States in 2009
Source: http://www.eia.gov/dnav/ng/NG_PRI_SUM_A_EPG0_PRS_DMCF_A.htm
Idaho’s proximity to major natural gas supply basins in the Rocky Mountains and western
Canada has also allowed Idaho to benefit from relatively low natural gas rates, despite the lack of
natural gas resources in Idaho. Idaho’s average natural gas rates were among the lowest in U.S.
states in 2009 as shown in Figure 2.10. However, Idaho’s prices for petroleum products are
typically somewhat higher than the national average, as Idaho relies principally on refineries in
Montana, Utah, and Washington for its supplies of gasoline, diesel, and other petroleum
products. However, Idaho’s average gasoline prices were still among the lowest of the U.S. states
in 2010, as shown in Figure 2.11.95

94 Source: http://www.eia.gov/dnav/ng/NG_PRI_SUM_A_EPG0_PRS_DMCF_A.htm
95 Energy Information Administration, Retail Gasoline Prices -
http://www.eia.gov/dnav/pet/pet_pri_allmg_a_EPM0_PTC_Dpgal_m.htm and American Petroleum
Institute Fuel Tax Tables -
http://www.api.org/statistics/fueltaxes/upload/July2011_gasoline_diesel_summary.pdf
0
5
10
15
20
25
30
35
40
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Idaho ranks 14th lowest
in the nation for natural
gas prices

2012 Idaho Energy Plan 57
Figure 2.11. Idaho’s 2010 Retail Gasoline Prices Compared to Other States

Note: The federal tax on gasoline in 2011 was 18.4 cents per gallon. The average state gasoline tax was 45.7 cents per
gallon. Idaho’s gasoline tax rate in 2011 was 43.4 cents per gallon.
Source: http://www.eia.gov/dnav/pet/pet_pri_allmg_a_EPM0_PTC_Dpgal_m.htm and http://www.api.org/statistics/fueltaxes/

Figure 2.12. Idaho’s Average Electricity Rates Compared to Other States for 2009

http://www.eia.doe.gov/cneaf/electricity/epa/average_price_state.xls: Total Electricity Price
2.4.2. Sources of Idaho’s Energy
As shown in Figure 2.13, petroleum fuels, mostly used for transportation, account for
approximately 39 percent of Idaho’s end-use energy consumption. Electricity (26 percent) and
natural gas (22 percent) are also important energy commodities, while the remaining
approximately 13 percent is attributable to coal, biomass, ethanol, and other renewable energy
sources. Energy demand growth both in Idaho and across the country is placing upward
2
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Blue bar = price without taxes
Red bar = price including federal and state
Idaho's regular gasoline prices
are 8th lowest in the nation
0
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In 2009 Idaho had the 2nd-
lowest average electricity
rate in the United States.

2012 Idaho Energy Plan 58
pressure on energy rates as low-cost sources of energy are exhausted and energy suppliers must
turn to higher-cost resources.
Figure 2.13. Sources of Energy Consumed in Idaho in 2009

Note: "Other Renewables" includes geothermal (0.5%) and wind (0.8%)
Source: http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho

Figure 2.14 depicts the sources of Idaho’s electricity in 2010, i.e., Idaho’s ‚fuel mix.‛ The chart
shows that hydroelectricity and coal are the dominant sources of Idaho’s electricity, comprising
approximately 50 and 38 percent, respectively. Natural gas comprises 6.5 percent, with non-
hydro renewables, principally wind power and biomass, accounting for approximately 3.4
percent. Idaho’s municipal and cooperative utilities also receive a small share of the output of
the Columbia Generating Station nuclear plant in Washington. (Note that the fuel mix in this
figure is based on the percentage of Idaho load served by each utility and not by the generation
source of the energy actually delivered to the customer.)

Petroleum
39.0%
Natural Gas
22.4% Coal
2.2%
Electricity
26.3%
Other
Renewables
1.3%
Ethanol
0.8%
Woody
Biomass
8.0%
Idaho Total Consumption in 2009:
538.2 Trillion Btu

2012 Idaho Energy Plan 59
Nuclear
2.1%
Coal
37.6%
Wind
1.9%
Natural Gas
6.5%
Biomass
1.5%
Cogen
0.7%
Hydro
49.7%
Figure 2.14. Idaho’s 2009 Electricity Fuel Mix
Note: Data based upon three IOUs and BPA 2010 resources apportioned by percent of Idaho load served and that
none of these resources are specifically allocated to Idaho. Sources: Investor owned Utilities Information is from each
investor-owned utility’s FERC Form 1: http://www.ferc.gov/docs-filing/forms.asp and for percent of Idaho load served:
http://www.eia.gov/cneaf/electricity/page/eia861.html BPA: Source: http://www.bpa.gov/power/pgp/whitebook/
2010/WhiteBook2010_SummaryDocument_Final.pdf

In Idaho, hydro is still the primary source of fuel for our electricity generation, followed by coal.
This depends, of course, on the quality of the water year. As mentioned earlier, all of our coal
generation comes from our neighboring states.

Coal is the most common fuel for generating
electricity in the United States.

In 2010, 45% of the country's nearly 4 trillion
kilowatt hours of electricity used coal as its source
of energy and 24% of the nation's electricity was
fueled by natural gas. Nuclear power was used to
generate about 20% of all of the country's electricity
in 2010 and hydropower was the source for 6% of
U.S. electricity generation. Renewable resources,
including biomass, wind, and geothermal account
for about 1% each, with solar providing less than 1%
of the electricity in the country in 2010.96
The Energy Information Administration predicts
that generation from coal will increase by 25 percent
from 2009 to 2035, largely as a result of increased
use of existing capacity; however, its share of the

96 Source: http://www.eia.gov/energyexplained/index.cfm?page=electricity_in_the_united_states

2012 Idaho Energy Plan 60
total generation mix will fall from 45 percent to 43 percent as a result of more rapid increases in
generation from natural gas and renewables over the same period. The role of natural gas will
grow due to low natural gas prices and relatively low capital construction costs that make it more
attractive than coal. The share of generation from natural gas will likely increase from 23 percent
in 2009 to 25 percent in 2035. They also estimate that electricity generation from renewable
sources will grow by 72 percent, raising its share of total generation from 11 percent (including
hydro) in 2009 to 14 percent in 2035. Most of the growth in renewable electricity generation in the
power sector will consist of generation from wind and biomass facilities, with much of that
growth driven by state renewable portfolio standards and federal tax credits.97
Figure 2.15. Idaho’s 2010 Electricity Energy Sources

Source: http://www.eia.gov/cneaf/electricity/epa/epa_sprdshts.html
Electric Power Annual 2009 - Data Tables Format 1990 - 2009
Net Generation by State by Type of Producer by Energy Source (EIA-906, EIA-920, and EIA-923)

Figure 2.15 indicates that Idaho is heavily dependent upon imported electricity to meet our loads.
Our utilities generate in-state approximately 35% of the energy we utilize, with another 13%
being provided by non-utility cogeneration or independent power producers. The remaining 52%
is made up through energy imports which are comprised of generation from out-of-state
resources owned by Idaho utilities as well as market purchases.
2.4.3. Energy Intensity
Idaho’s historically low rates for electricity and natural gas have allowed it to attract and retain
energy-intensive industries, including mining, pulp and paper, agriculture, food processing, and

97 http://www.eia.gov/forecasts/aeo/chapter_executive_summary.cfm

2012 Idaho Energy Plan 61
computer chip manufacturing. As a result, Idaho’s economy is more energy-intensive than many
other states. Idaho’s energy use per dollar of Gross State Product (GSP) was 19th among U.S.
states in 2009. Idaho’s energy use per capita was 31st highest in 2009, higher than neighboring
states such as Washington, Oregon and Utah.98 99
Figure 2.16. Idaho’s Energy Intensity as a Share of the State Economy

Source: http://www.eia.gov/state/seds/sep_sum/html/pdf/rank_pr.pdf
2.4.4. Household Energy Bills
Idaho’s residential, commercial, industrial, and transportation sectors spent $4.9 billion on energy
in 2009100; the average Idaho household spent approximately $4,500 on direct energy products in
2009.101 This figure (Figure 2.17) includes monthly electricity and natural gas bills as well as an
estimate of Idaho households’ gasoline expenditures, as can be seen in Table 2.3. Energy
expenditures consume almost 10 percent of median household income in Idaho. This figure
places Idaho near the average for the U.S. as a whole, despite Idaho’s very low electricity and
natural gas rates. This is because: (1) Idahoans drive more miles and purchase more gasoline
than residents of more densely-populated states, and (2) Idaho’s median household income of

98 Source: http://www.eia.gov/state/seds/sep_sum/html/pdf/rank_pr.pdf
99 Ibid.
100 Based upon per capita energy expenditure of $3,172.08 (http://energy.gov/maps/2009-energy-
expenditure-person) times the 2010 population of 1,567,582
(http://quickfacts.census.gov/qfd/states/16000.html)
101 Expenditures http://205.254.135.24/state/seds/hf.jsp?incfile=sep_prices/res/pr_res_ID.html&mstate=Idaho;
Total Households http://factfinder.census.gov/servlet/ADPTable?_bm=y&-context=adp&-
qr_name=ACS_2009_1YR_G00_DP2&-ds_name=ACS_2009_1YR_G00_&-tree_id=309&-_caller=geoselect&-
geo_id=04000US16&-format=&-_lang=en; fuel expenditures
http://205.254.135.24/state/seds/hf.jsp?incfile=sep_prices/tra/pr_tra_ID.html&mstate=Idaho
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
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In 2009, Idaho had the 19th highest
energy intensity in the United States

2012 Idaho Energy Plan 62
$46,778 in 2009 was lower than the U.S. average of $49,777.102 Thus, energy is a significant burden
for many Idaho households, despite the low energy rates that Idahoans continue to enjoy.
Figure 2.17. Idaho's Average Household Energy Burden Compared to Other States in 2009
(including Transportation Fuel)
Source for Total Median Household Income by State in 2009 Dollars:
http://www.census.gov/hhes/www/income/data/statemedian/index.html
Source for Energy Prices and Expenditures Per Person and Gasoline Expenditures:
http://www.eia.gov/state/seds/sep_prices/notes/pr_print2009.pdf (Tables E15 and E16)

Table 2.3. Average
Household Energy Bill in
Idaho, 2009 Energy Source Dollars per Year Share
Gasoline $2,555 57%
Electricity $1,195 27%
Natural Gas $482 11%
Other Petroleum (Propane,
Fuel Oil, Kerosene) $196 4%
Wood $66 1%
Coal $0 0%
TOTAL $4,494 100%
Sources: EIA Tables, ET3, ET6, ET4 and ET5 as well as the American Community Survey 2009 Profile Data

102 http://www.census.gov/hhes/www/income/data/statemedian/index.html (Table H8) 2009
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16%
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In 2009, Idaho ranked 31st in the
U.S. for percent of median
household income spent on energy

2012 Idaho Energy Plan 63
2.4.5. Historical Investments in Idaho Renewable Resources
Idaho’s domestic resource base consists largely of renewable energy sources such as hydro, wind,
and geothermal energy. Idaho is home to 140 hydroelectric dams, with combined capacity of
approximately 2,500 MW, and that combined produce 1,300 aMW of low-cost energy each year.103
The direct use of geothermal energy also has a rich history in Idaho, with Boise’s Warm Springs
Geothermal Heating District being one of the oldest continuously operating geothermal heating
projects in the nation. Aside from a few co-generation projects, hydro power has historically
been the primary renewable resource developed in Idaho. Recent years have seen the
development of significant levels of wind energy, a few biomass and landfill gas projects and
some geothermal sites. Small scale solar energy is also a viable resource and Idaho utilities have
executed contracts for solar projects.
One of the vehicles for developing smaller-scale resources in Idaho has been the Public Utility
Regulatory Policies Act (PURPA) of 1978. PURPA requires utilities to purchase energy from
‚qualifying facilities‛ (QFs) at the utility’s avoided energy costs. The federal law places these
facilities into two categories: qualifying small power production facilities and qualifying
cogeneration facilities. A small power production facility is a generating facility of 80 MW or less
whose primary energy source is renewable (hydro, wind or solar), biomass, waste, or geothermal
resources. A cogeneration facility is a generating facility that sequentially produces electricity
and another form of useful thermal energy (such as heat or steam) in a way that is more efficient
than the separate production of both forms of energy. For example, in addition to the production
of electricity, large cogeneration facilities might provide steam for industrial uses.
Determining avoided costs as well as other implementation details occurs at the state level. The
policies established by the Idaho PUC have been relatively favorable toward QFs, and as a result,
Idaho experienced development of 200 MW of QF resources by the early 1990s, principally
industrial co-generation and small hydro projects. While momentum slowed with the move
toward competitive markets in the 1990s, a resurgence of interest in using PURPA to develop
projects began with the new century. Many of the projects in the late 1990s and early 2000s were
wind facilities sized to come in just under the 10 average MW maximum size eligible for their
published avoided cost rates established by the Idaho PUC. However, in recent years, some wind
developers were disaggregating much larger projects into 10 MW sized units in order to qualify
for the published PURPA rates. In order to address such disaggregation, in late 2010, the Public
Utilities Commission reduced the eligibility size from 10 MW to 100 kW for intermittent
resources (wind and solar). Larger projects are still eligible for PURPA contracts, with the rate
determined on a case-by-case negotiation with the utility, with the prices based upon the utility’s
Integrated Resource Plan.105

103 ISEA Hydropower Task Force Report, May 2009:
http://www.energy.idaho.gov/energyalliance/d/Hydro%20Packet.pdf
104 http://www.ferc.gov/industries/electric/gen-info/qual-fac/what-is.asp and
http://www.fs.fed.us/im/directives/fsh/2709.15/05.txt
105 Idaho Public Utilities Commission Case No. GNR-E-10-04, order number 32176.;
http://www.puc.idaho.gov/internet/cases/summary/GNRE1004.html

2012 Idaho Energy Plan 64

Figure 2.18. PURPA Generation in Idaho, 1981-2013

Source: Idaho Public Utilities Commission
2.4.6. Historical Investments in Energy Efficiency and Conservation
The Northwest Power and Conservation Council (‚Power Council‛) produces estimates of the
amount of conservation that can be acquired cost-effectively in the four-state Pacific Northwest
region. Historically, since the Northwest Power Act of 1980, the Pacific Northwest has actively
pursued programs to improve electrical energy efficiency. The Power Council calculated that the
region saved over 3,900 average megawatts of electricity by 2008 as a result of the accumulated
effects of Bonneville and utility conservation programs, improved energy codes and appliance-
efficiency standards, and market-transformation initiatives. These efficiency improvements have
met 48 percent of the region’s load growth since 1980, and the savings now amount to more than
the total electricity use of Idaho and Western Montana combined.106 Conservation is the fourth-
largest resource meeting the Northwest’s electric energy needs, exceeded only by hydropower,
coal, and natural gas.107

Idaho's Conservation Program Funding Charge of 1.5% of customer electricity bills is collected
and administered by Idaho's electric utilities following a 2002 ruling by the Idaho Public Utilities
Commission. Idaho budgeted over $50 million in 2010 to promote energy efficiency and load

106 Published February 2010, http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
107 Northwest Power Planning Council 6th Power Plan, February 2010,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
-
200
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Megawatts under Contract

Wind
Solar
Landfill
Hydro
Geothermal
Cogen
Biogas

2012 Idaho Energy Plan 65
management (including residential and low-income programs) in the state through initiatives
administered by Idaho utilities and the Northwest Energy Efficiency Alliance.108 The state has
increasingly worked toward energy efficiency and demand reduction in state buildings and
facilities; they adopted the 2009 International Building Code for Idaho and increased use of more
fuel efficient, flex fuel, and alternative fuel vehicles in state vehicle fleets. In addition, using
ARRA funding, the state performed 894 public school energy audits and implemented energy
efficiency measures with the potential of saving over 200 million kWh annually, money that
directly reduces the school district budget outlays.109
Idaho universities are also committed to energy efficiency. The CAES Energy Efficiency Research
Institute (CEERI), a research and education partnership between Boise State University, Idaho
National Laboratory, Idaho State University and University of Idaho, is leading a statewide effort
to make buildings, homes, transportation and industrial systems more energy efficient, including
developing better lighting plans for buildings and evaluating HVAC systems.110
Idaho’s public and private utilities have all aggressively stepped up energy efficiency programs
in the past several years. Descriptions of utility efforts in energy efficiency and conservation
include the following:

Figure 2.19. Electric Utility Conservation Achievements since 2004 by Public Utilities in
Idaho, not including Market Transformation (NEEA) Savings

Note: Figure 2.19 was created using historical data Rocky Mountain Power, Idaho Power, and Avista 2011
annual reports, includes electrical energy savings for Idaho only, and does not include market
transformation savings provided by NEEA.

108 http://www1.eere.energy.gov/femp/financing/eip_id.html
109 http://legislature.idaho.gov/budget/JFAC/presentations/OER.2011-02-
02.pdf#xml=http://legislature.search.idaho.gov/isysquery/ce0d72c5-d302-4a11-80e3-3aae1665798f/13/hilite/
110 https://inlportal.inl.gov/portal/server.pt/community/caes_home/281/energy_efficiency
2004 2005 2006 2007 2008 2009 2010
0.8 4.4 7.0 5.1 5.8 9.8 13.1 10.3 17.4 13.9 16.1 22.4 24.3 20.7
5
20
47 58
104
128
163
MW
h

(
0
0
0
)

Annual Idaho Energy Savings in MWh (000)
Rocky Mtn Power Avista Idaho Power

2012 Idaho Energy Plan 66
IDAHO FALLS POWER
Public power in Idaho has been engaged in energy efficiency for decades through programs and
incentives developed by Bonneville Power Administration. For example, Idaho Falls Power has
been providing energy efficiency programs to its customers for 29 years. Initial efforts were
largely focused on residential weatherization but over the years have expanded to a full suite of
residential, commercial, and industrial programs. In addition to incentives offered through BPA,
Idaho Falls Power has maintained a revolving loan program for 15 years, offering zero interest
loans to finance energy efficiency improvements. Recent program promotion has resulted in a
400% increase in annual energy efficiency savings (from average 1.2 million kWh/year to 5
million kWh/year) with the focal program being commercial and industrial lighting. Energy
efficiency savings over that time has been more than 53 million kWh, with more than 20 million
kWh of that occurring in the last four years. Idaho Falls Power is currently soliciting customer
involvement in smart grid technology to set priorities for future energy efficiency program
offerings for customers.111

IDAHO POWER COMPANY
In 2010, Idaho Power spent approximately $45.6 million on energy efficiency and targeted
demand reduction response programs which resulted in reduced energy usage of approximately
170,000 MWh, and the demand response programs resulted in a summer peak demand reduction
of about 300 MW. Idaho Power currently has 15 energy efficiency and demand response
programs in place, offered to all customer segments and emphasizing the wise use of energy,
especially during periods of high demand. This energy and demand reduction can minimize or
delay the need for new infrastructure. Idaho Power’s programs include:
 Financial incentives for irrigation customers for either improving the energy efficiency of
an irrigation system or installing new energy efficient systems;
 Energy efficiency for new and existing homes, including efficient appliances and HVAC
equipment, energy efficient building techniques, insulation improvement, air duct
sealing, and energy efficient lighting;
 Incentives to industrial and commercial customers for using energy efficient equipment,
and using energy efficiency techniques and operational and management processes; and
 Demand response programs to reduce peak summer demand through the voluntary
interruption of central air conditioners for residential customers, interruption of
irrigation pumps, and reduction of commercial and industrial demand through a third-
party demand response aggregator.

Approximately $3 million of Idaho Power’s 2010 energy efficiency spending was related to
research and analysis, education, technology evaluation, and market transformation. Most of this
activity was done in conjunction with the Northwest Energy Efficiency Alliance (NEEA).112
PACIFICORP / ROCKY MOUNTAIN POWER
PacifiCorp has provided a comprehensive set of demand-side management (DSM) programs to
its customers since the 1970s. The programs are designed to reduce energy consumption and
more effectively manage when energy is used, including management of seasonal peak loads.
Excluding the sales to two large industrial customers in the state, PacifiCorp’s agricultural loads
represent over 30 percent of the Company’s Idaho energy sales and contribute significantly to

111 http://www.idahofallsidaho.gov/faq/encourage-conservation.html
112 Idaho Power 2010 Annual Report: http://www.idacorpinc.com/pdfs/annualreps/ar2010.pdf

2012 Idaho Energy Plan 67
Rocky Mountain Power’s summer peak requirements. The Company’s agricultural energy
services and load management programs are intended to assist in managing these loads and
helping lower energy costs to both the Company and their customers.113 In March 2011,
PacifiCorp was ranked ninth in the nation for its demand side management investments by
Zpyrme Smart Grid Insights, a national research and consulting firm.114
PacifiCorp/Rocky Mountain Power offers several energy efficiency programs for commercial,
industrial, agricultural, and residential customers in Idaho:115
 Idaho Energy FinAnswer offers cash incentives for energy efficiency retrofits, major
renovation, and new construction projects equal to $0.12 per kWh of the projected annual
savings plus $50 per average monthly on-peak kW reduced. Incentives are capped at 50%
of the project cost. The program also incorporates a variety of energy efficiency services,
including facility energy analysis, detailed design assistance, competitive financing,
commissioning, and post-installation savings verification, tailored to the specific needs of
the project.
 Idaho FinAnswer Express for small commercial customers and for industrial and large
commercial customers provides pre-calculated cash rebates for energy-efficient lighting,
HVAC, motors and green motor rewinds, building envelope measures and other
upgrades. Incentive amounts depend on the equipment installed.
 The Agriculture Energy Services program offers agricultural customers incentives for
upgrading the efficiency of their irrigation systems.
 Demand response programs to reduce peak summer demand through scheduled and on-
call interruption of irrigation pumps and special interruption agreements with large
industrial customers.
 No cost distribution of high efficient appliances and lighting technologies, as well as
weatherization services, to residential dwellings of income qualified customers.
 The Home Energy Savings program provides incentives to residential customers for
efficiency improvements including horizontal axis clothes washers, refrigerators, water
heaters, dishwashers, lighting, heating and cooling equipment and services, insulation,
windows and miscellaneous equipment such as ceiling fans. In addition, the program
includes a Builder Option Package as well as stand-alone measures for new homes. This
program also includes an appliance recycling program that aims to decrease residential
refrigeration loads by reducing the number of older and less efficient refrigerators and
freezers from the market through a free pickup and recycling service; customers receive a
small cash incentive and instant savings kit containing energy saving tips and compact
fluorescent lights.

KOOTENAI ELECTRIC COOPERATIVE
Kootenai Electric Cooperative (KEC) is also very active in the area of energy efficiency. Through
the combined programs of BPA and KEC, more than $700,000 was paid to more than 2,000

113 http://www.iiec.org/index.php?option=com_content&view=article&id=339&Itemid=176
114 http://smartgridresearch.org/wp-
content/uploads/sgi_reports/Top_10_US_Utilities_by_DSM_Investment_Zpryme_Smart_Grid_Insights_Mar
ch_2011.pdf
115 http://www1.eere.energy.gov/femp/financing/eip_id.html

2012 Idaho Energy Plan 68
members in energy efficiency rebates in 2010. This accounts for 2.4 million kWh in member
energy savings. They offer rebates on heat pumps, water heaters, and appliances.
BPA and KEC are also focusing efforts to improve commercial lighting, efficient motors and
pumps, and efficiency improvements in the industrial sector.116

AVISTA CORPORATION117
In 1995 Avista (then Washington Water Power) proposed a two-year experimental system benefit
charge to provide stable, predictable funding for demand-side management programs. Approved
by both the Idaho and Washington Commissions, it became the first use of distribution charges to
sustain cost-effective energy efficiency investments in the nation. 118 119
Avista offers energy efficiency incentives for a broad array of electric and gas efficiency measures
and equipment, as well as fuel-switching projects. Rebates are limited to eligible projects that
achieve a simple payback of less than eight years for lighting and less than 13 years for other
measures (e.g., HVAC, windows, insulation, renewable energy projects). Several programs have
been added or updated for 2011. Opportunities available include:
 Site-specific incentives, which provide custom incentives (up to 50% of incremental cost)
based on first-year energy savings for electric efficiency, fuel conversion, and natural gas
efficiency projects, including measures and equipment not included under other
programs.
 Commercial lighting, refrigeration, and HVAC incentives.
 Food service equipment rebates.
 A commercial windows and insulation program.
 Standby generator block heater and premium efficiency motors programs.
 Commercial clothes washer rebates.
 Incentives for optimizing the performance of building systems.

BONNEVILLE POWER ADMINISTRATION
Bonneville Power Administration (BPA) partners with its customers to promote energy
efficiency. They offer assistance in developing new energy efficiency programs and services,
improving design of existing programs, developing more informed marketing strategies, and
improving targeting of customer communications. Their philosophy is that providing these
services will result in greater participation by retail utility customers, resulting in greater energy
savings for the region. Bonneville offers several energy conservation programs relevant to federal
customers:120
 BPA provides project analysis, development services, and financial incentives through its
Energy Smart Federal Partnership. Federal facilities located in areas that are served by
public utilities receiving power from BPA can receive preliminary energy assessments,
project development studies or specifications, and engineering support.

116 http://www.kec.com/documents/web2010_kec_annualreportv2.pdf
117 http://www1.eere.energy.gov/femp/financing/eip_id.html
118 http://eec.ucdavis.edu/ACEEE/1994-96/1996/VOL07/007.PDF
119 Idaho Public Utilities Commission Order No. 25809, CASE NO. WWP-E-94-10 WWP-G-94-5, November
1994 (http://www.puc.state.id.us/search/orders/dtsearch.html)
120 http://www1.eere.energy.gov/femp/financing/eip_id.html

2012 Idaho Energy Plan 69
 BPA's Implementation Manual, updated semi-annually, provides utilities, program
partners and regional stakeholders information on how to implement energy-saving
projects.
 BPA's Technical Services Proposal (TSP) program guides customers in submitting
proposals for energy efficiency technical services.
 BPA's Commercial and Industrial Lighting program provides access to a lighting
calculator, lighting trade allies, and incentives for energy-efficient lighting retrofits.
 BPA's Energy Smart Design program offers incentives for new small offices via
participating BPA utilities.

Figure 2.20. Electric Utility Conservation Achievements from 2000 – 2009 as a Share of 2009
Retail Electricity Sales
Note: Idaho Power has historically focused its demand-side efforts on programs that reduce peak demand,
which are not reflected on this chart, rather than programs that reduce overall energy consumption.
Source of Graph: Northwest Power and Conservation Council. Derived from the Regional Technical Forum Annual Conservation
Achievements Surveys 2000 – 2009. (http://www.nwcouncil.org/energy/rtf/consreport/Default.asp)
2.4.7. Historical Investments in Fossil Fuel Based Electrical Generation
Baseload coal plants built in neighboring states in the 1970s and 1980s have provided a constant
source of reliable, low-cost power to Idaho utilities. Coal-based electrical generation offers the
advantage of a known technology that can produce electricity at a low and stable cost. Coal
plants are best suited to baseload operation, where their electricity output is stable from hour-to-
hour and day-to-day. However, new investments in this type of resource are becoming

2012 Idaho Energy Plan 70
problematic, as coal combustion emissions are increasingly associated with the impacts of global
climate change and other environmental concerns.
2.5. ENERGY RESPONSIBILITIES IN IDAHO STATE GOVERNMENT
Energy responsibilities are spread among many state and local agencies, depending upon the
resource (e.g., Department of Water Resources, Department of Environmental Quality), where it
is located (e.g., Department of Lands, County Commissions), and whether it is developed by a
utility regulated by the Public Utilities Commission. Investor owned utilities are subject to
economic regulation by the Public Utilities Commission. Energy policy within the state is
established by the Legislature, except in those areas preempted by federal statutes. Policies are
administered by the respective state agencies, with coordination provided by the Office of Energy
Resources (OER).
Energy responsibilities are carried out principally by the IPUC and the OER. OER’s
responsibilities quite often are accomplished in coordination with other state agencies including
the Idaho Department of Lands, Idaho Department of Environmental Quality, Governor’s Office
of Species Conservation, Idaho Department of Fish and Game, Idaho Department of Water
Resources, and Idaho State Historic Preservation Office.
In addition, Idaho is a member of the Northwest Power and Conservation Council, an
organization created pursuant to a multi-state compact. The Council develops power plans and
fish and wildlife mitigation plans that guide the Bonneville Power Administration’s expenditures
in these areas. Finally, the Idaho Legislature in 2005 created the Idaho Energy Resources
Authority to promote the development of generation and transmission resources in Idaho.
2.5.1. Idaho Public Utilities Commission
The Idaho Public Utilities Commission (PUC) regulates Idaho’s investor owned electric, natural
gas, telecommunications, and water utilities in order to ensure adequate service at just,
reasonable, and sufficient rates. The three-member Commission was established by the 12th
Session of the Idaho Legislature and was organized May 8, 1913, as the Public Utilities
Commission of the State of Idaho. In 1951, it was reorganized as the Idaho Public Utilities
Commission. Statutory authorities for the Commission are established in Titles 61 and 62, Idaho
Code. The PUC also has authority to promulgate administrative rules, and the PUC’s official
rules are published in IDAPA 31.121
The PUC consists of three Commissioners who are appointed by the Governor, subject to Senate
confirmation, to staggered six-year terms. No more than two commissioners may be of the same
political party.
The PUC holds formal hearings on utility issues on a case-by-case basis. These hearings resemble
judicial proceedings and are recorded as well as transcribed by a court reporter. Formal parties
to the case under consideration present testimony and evidence, subject to cross-examination by
attorneys representing the parties and the commissioners. To help ensure that its decisions are
fair and workable, the Commission employs a staff of about 50 people, including engineers,
accountants, economists, and investigators. The staff analyzes each matter before the

121 Idaho Statute Title 61: http://www.legislature.idaho.gov/idstat/Title61/T61.htm and Idaho Statute Titl3 62:
http://www.legislature.idaho.gov/idstat/Title62/T62.htm

2012 Idaho Energy Plan 71
Commission and issues a recommendation. In formal proceedings before the Commission, the
staff acts as a separate party to the case, presenting its own testimony, evidence, and expert
witnesses. The Commission considers staff recommendations along with those of other
participants in each case ‐ including utilities, public, agricultural, industrial, business, and
consumer groups. The Commission renders a decision based on all the evidence that is presented
in the case record. Commission Orders can be appealed directly to the Idaho Supreme Court.
2.5.2. Idaho Office of Energy Resources
The Idaho Office of Energy Resources (OER) was established by Executive Order 2007-
15 on October 19, 2007.122 This order was replaced by Executive Order 2011-14 on October 18,
2011. This order placed the OER within the Office of the Governor, transferring the staff of the
former Energy Division of the Idaho Department of Water Resources to OER. OER was
designated as the state level entity to coordinate energy policy, direct Idaho’s response to federal
energy issues, and participate in state and regional energy planning efforts on behalf of Idaho.
Their duties include advising the Governor, the Legislature, and other public officials regarding
matters related to Idaho’s energy requirements, supply, generation, transmission, conservation,
and energy efficiency efforts. The OER is also responsible for accepting and utilizing funds from
various state, federal, and other sources to accomplish purposes outlined within the Executive
Order referenced above. The OER performs its duties in accordance with the requirements of the
Executive Order and in conformity with the 2007 Idaho Energy Plan.123

OER has a dedicated funding source through geothermal royalties from the auction of
geothermal leases on federal land. However, since the initial payment into the geothermal
royalties fund, payments from the federal government have been very limited. Based on actual
geothermal development on federal land, a steady revenue stream from this fund appears
unlikely. Due to the limited dedicated funding, OER primarily relies on federal funds to support
its program work; no employees are supported by General Fund appropriations. As a result of
its reliance on federal grant money, the OER staff is restricted to activities that are provided for in
the federal grants.
In service to educating Idahoans on energy issues and advising stakeholders on energy issues,
the OER, on behalf of the Governor, created the Idaho Strategic Energy Alliance (‚Alliance‛). The
Alliance was created to help develop effective and long-lasting responses to the energy
challenges facing Idaho and is lead by a council comprised of leaders in a number of state
agencies. The structure of the Alliance allows a wide variety of stakeholders to play a role in
developing options for Idaho’s energy future. The purpose of the Alliance is to enable the
development of a sound energy portfolio for Idaho that includes diverse energy resources and
production methods that provide the highest value to our citizens, that ensures quality
stewardship of our environment, and that functions as an effective, secure, and stable energy
system for our state. It is Idaho's primary mechanism to engage in seeking options for and
enabling advanced energy production, energy efficiency, and energy business in the State of
Idaho.124

122 http://gov.idaho.gov/mediacenter/execorders/eo07/eo_2007_15.html
123 http://dfm.idaho.gov/Publications/BB/StrategicPlans/SP2011/EnergyResources_SP.pdf
124 http://www.energy.idaho.gov/energyalliance/

2012 Idaho Energy Plan 72
2.5.3. Northwest Power and Conservation Council
The Northwest Power and Conservation Council develops and maintains a regional power plan
and a fish and wildlife program to balance the Northwest's environment and energy needs. The
Council also produces estimates of the amount of conservation that can be acquired cost-
effectively in the four-state Pacific Northwest region.125
2.5.4. Idaho Energy Resources Authority
The Legislature established the Idaho Energy Resources Authority (IERA) in 2005 for the purpose
of promoting transmission, generation, and renewable energy development in the state and the
region. The IERA is an energy-related lending/financing authority with the ability to issue
revenue bonds. This legislation was proposed in response to the recognized inability of Idaho’s
municipal and cooperative electric utilities to adequately and reasonably finance transmission
and generation projects required for the benefit and needs of their residents and members. The
IERA can participate in planning, financing, constructing, developing, acquiring, maintaining,
and operating electric generation and transmission facilities and their supporting infrastructure.
The IERA provides a vehicle for Idaho utilities to jointly own and finance transmission and
generation projects for the benefit of their ratepayers. While the IERA has bonding authority and
other powers to promote specific projects, it has no appropriation, no full-time staff, and no
ability to finance projects that are not backed by utility ratepayers.126

In 2010, the IERA undertook a structured transaction in conjunction with the Utah Associated
Municipal Power System (UAMPS) to develop the Horse Butte Wind Project (Horse Butte) on
behalf of UAMPS members, including the City of Idaho Falls and Lower Valley Energy electrical
cooperative. Participation by and ownership of Horse Butte by a subsidiary of the IERA
materially lowered the development costs of Horse Butte for the UAMPS participant members
that will eventually own Horse Butte, upon completion of construction of the project. The Horse
Butte Project cost savings is a result of the IERA’s ability to take advantage of certain federal tax
incentives that were otherwise unavailable to UAMPS. The Horse Butte Wind Project will enter
commercial operation in the first part of 2012, at which time the IERA’s subsidiary will divest
itself of Project ownership. 127 128
2.5.5. Idaho Oil and Gas Conservation Commission
The Idaho Oil and Gas Conservation Commission was created by Section 47-317, Idaho Code,129
and is based in the Idaho Department of Lands Director’s Office in Boise. It is made up of State
Board of Land Commissioners that includes the Governor, Secretary of State, Attorney General,
State Controller, and Superintendent of Public Instruction. The efficient recovery of oil and gas,
protection of correlative rights, and protection of fresh water supplies are the duties of this
Commission, as well as other activities associated with oil and gas development including
spacing orders, directional drilling, secondary recovery, and unit operations. Drill permits are

125 http://www.nwcouncil.org/energy/powerplan/6/default.htm
126 http://www.iera.info/pdf/statement_of_purpose_august2006final.pdf
127 http://www.windpowerengineering.com/construction/projects/32-for-horse-butte/
128 Idaho Energy Resources Authority, 2010 Horse Butte Press Release: http://www.iera.info/wp-
content/uploads/2011/08/Horse-Butte-Press-Release.pdf
129 http://www.legislature.idaho.gov/idstat/Title47/T47CH3SECT47-317.htm

2012 Idaho Energy Plan 73
issued by the Director after a review by the Idaho Department of Water Resources. Commission
activities may require a public hearing as part of the review process.130

3. Idaho’s Future Energy Supply
3.1. OVERVIEW
This chapter describes Idaho’s future energy supply based upon Idaho energy suppliers’ current
plans for investing in new resources and infrastructure. For electricity and natural gas, the
information presented in this chapter is based largely on the integrated resource plans that
Idaho’s investor owned utilities file every two years with the PUC and on input received from
Idaho’s consumer-owned utilities. The IRPs evaluate a variety of different resources, including
demand-side measures such as conservation and energy efficiency, and typically select a
‚preferred resource strategy‛ based on evaluation criteria including cost, risk, reliability, and
environmental concerns. For petroleum, the projections are based on the best publicly available
information, as petroleum suppliers do not file IRPs with state regulators.
Idaho’s electric utilities have historically relied on coal and hydroelectricity as their predominant
energy sources. New investments in these two resources are becoming problematic, however, as
large hydro resources are mostly developed and coal is increasingly associated with the impacts
of air emissions and global climate change. Moreover, these existing resources are now
themselves sources of risk due to hydro relicensing and possible carbon regulation. Idaho utility
resource plans are currently focused on renewable resources, natural gas resources, and
additional transmission capacity necessary to move energy within the region. In addition, Idaho
utilities continue to place an emphasis on cost-effective conservation, energy efficiency, and
demand response as the growth of Idaho loads has accelerated and the cost of developing new
resources has risen.
Idaho has been in a favorable position for accessing natural gas supplies since 1956. Northwest
Pipeline is an interstate natural gas pipeline running from the Four Corners area to the British
Columbia/Washington border. It has numerous laterals in Washington to assist in serving
northern Idaho. It was designed to be fed from both ends and in the middle at Stanfield, Oregon
with an interconnection with Gas Transmission North coming from British Columbia and
Alberta. New connections to Northwest Pipeline will allow for more gas to move into and out of
the region providing more price competition. Though Northwest Pipeline is usually fully
subscribed, the capacity segmentation has allowed more gas to get where it is being consumed
when needed. The new Ruby pipeline, which went into service on July 28, 2011, is positioned to
redirect displaced volumes and incremental supply to Northern California and the Pacific
Northwest.131 In time, Idaho may need more access to additional pipeline capacity.
The rapid and very successful development of large tight sands gas reservoirs in the Rockies and
shale reservoirs in the U. S. and Canada have been beneficial to the Northwest in terms of long-
term available supplies and competitive pricing. The development of shale gas in the Northeast
reduces the quantity of Western Canadian natural gas flowing to Eastern Canada and the New
England states, thus improving the market for California and the Pacific Northwest. Additional
natural gas underground storage in the Northwest and Canada has provided the opportunity to

130 http://www.idl.idaho.gov/bureau/minerals/min_leasing/iogcc.html
131 http://www.rubypipeline.com/

2012 Idaho Energy Plan 74
help soften the higher prices of winter spot gas. The IPUC has worked with investor owned gas
utilities to allow for the use of a wide variety of market pricing tools and supply arrangements
creating flexibility which benefits all ratepayers. Industrial consumers have the flexibility to
tailor their purchases to meet their consumptive needs. As the basis differential from one
consumptive center to another in the U.S. seems to level itself, we are still in a natural gas supply
positive balance in the Northwest that will bode well for prices being competitive with other
regions.
Recent drilling in the Payette Basin of Southwestern Idaho appears to be successful in finding
and developing supplies of pipeline quality natural gas with some gas liquids. This production is
supposed to go online in the fall of 2011 and more will be known at that time. This will be the
first commercial production of natural gas and related liquids in Idaho. As a whole, the
Committee finds that current plans by Idaho suppliers result in an outcome that lines up
reasonably well with the Idaho Energy Plan policy objectives. The Committee is also mindful
that major restructuring initiatives can have unintended consequences. As a result, the
Committee does not recommend major structural changes to Idaho’s energy industry at this time.
However, there are a few key areas where action is recommended. First, the Committee finds
that cost-effective energy conservation and energy efficiency measures provide the greatest
economic and environmental benefits for Idaho (and enhanced economic competitiveness for our
businesses) and should be Idaho’s highest priority energy resource; however, there are many
barriers that currently prevent this ‚resource‛ from being utilized to its full potential. Second,
the Committee finds that continued support for investments in economically attractive local
renewable energy resources such as wind energy, geothermal energy, solar, low-head hydro, and
biomass (biofuels and biopower) fuels could also provide economic benefits, particularly in rural
areas of the state, while representing an environmentally-friendly source of energy. Third, the
Committee finds that conventional resources such as oil, coal, natural gas or nuclear power will
continue to be needed to meet Idaho’s energy demand. The Committee encourages suppliers to
invest in the most environmentally sound methods of extraction, production and delivery of
conventional energy. Fourth, the Committee recognizes that technology innovation, global
market evolution, and regulatory changes have a high probability of changing our energy choices
and options, should be closely monitored and policy updated accordingly. Finally, the
Committee finds that local officials asked to make decisions about whether and under what
conditions to allow the construction of major energy production and major electric generating or
transmission facilities would benefit from access to the expertise and information of state
agencies; and the public in general will benefit from a continued focused, fact-based dialogue
concerning energy options, risks, and opportunities
3.2. SUMMARY OF ELECTRIC UTILITY INTEGRATED RESOURCE PLANS
All of Idaho’s investor owned utilities develop Integrated Resource Plans (IRPs) on a regular
basis. The IRP is a comprehensive decision support tool and road map for utility planning. These
plans address supply-side resources, demand-side measures, load forecasts, potential resource
portfolios, risk analysis, and near-term and long-term action plans. The plans are developed with
state utility commission staff, state agencies, customer and industry advocacy groups, project
developers, and other stakeholders.
Avista states that its strategy in planning new resource additions is to ‚own or control a diverse
mix of low-cost/low-risk resource, both on the supply- and demand-side, that meet our customer

2012 Idaho Energy Plan 75
loads while reducing both rate variability and our environmental footprint.‛ This is consistent
with general practices among other electric utilities, and the results can be seen in Figure 3.1,
which shows the investor owned utility planned additions through 2020, weighted by the
percentage of each company’s load located in Idaho. The actual resources may be located outside
of Idaho. Major planned investments are listed by online service date in Table 3.1.
Idaho’s three investor-owned utilities; Avista, Idaho Power, and Rocky Mountain Power all filed
updated integrated resource plans (IRP) with the Idaho PUC in 2011. The following sections
provide a brief overview of each utility’s current plan as well as plans for Idaho’s public power
utilities.
AVISTA CORPORATION
Avista filed its latest IRP in August 2011. The plan highlights a newly signed contract for the 100
MW Palouse Wind project located near Spokane, Washington and an additional 120 MW of
nameplate wind (or other qualifying renewable resources) by 2020. Beyond the recent Palouse
Wind acquisition, Avista does not anticipate a need for new resources until late in this decade.
Energy efficiency reduces Avista’s load growth by 48 percent over the IRP timeframe. The
energy efficiency measures are expected to reduce utility loads by 310 aMW of cumulative energy
over the next 20 years. In addition to customer-supplied efficiency, Avista’s grid modernization
and distribution feeder upgrade programs are projected to reduce load by a further five aMW by
2013, growing thereafter.
Gas-fired generation continues its role as a major contributor to Avista’s resource mix. A total of
756 MW of natural gas-fired generation facilities are required between 2018 and 2031. Finally,
transmission upgrades will be needed to carry the output from new generation to Avista’s loads.
PACIFICORP / ROCKY MOUNTAIN POWER
PacifiCorp‘s 2011 Integrated Resource Plan indicates the need for a significant amount of new
resources to offset load growth over the next several years. Their preferred plan focuses on
acquiring combined-cycle combustion gas turbines, renewable resources, and significant
increases in energy efficiency measures. The IRP estimates average annual energy efficiency
measure additions equivalent to about 130 MW, along with 250 MW of load control added
through 2015. The National Renewable Energy Laboratory (NREL) ranked PacifiCorp third in the
nation for its green energy power (renewable energy sales) programs, tenth in green power sales
as a total percent of retail sales, and second in green energy customer participation.132 They plan
to continue actively pursuing green energy options, with plans to add 100 to 300 MW per year in
wind resources beginning in 2018, as well as additional solar and biomass resources.133 For
PacifiCorp, energy efficiency represents the largest resource added on an average capacity basis
through 2030.
Transmission is a major focus for PacifiCorp’s future as they attempt to bring additional
renewable and cost-effective energy resources to their customers. They are also required to meet

132 http://www.nrel.gov/news/press/2010/838.html
133
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource_Plan/2011IRP
/2011IRP-MainDocFinal_Vol1-FINAL.pdf

2012 Idaho Energy Plan 76
increasingly stringent mandatory federal reliability standards, which require infrastructure
sufficient to withstand unplanned outages. Significant new transmission capacity is needed to
adequately serve customers load and growth needs in the long-term. In November 2010, they
placed the first major segment of the Energy Gateway (double-circuit 345 kV Populus to Terminal
line) in service, ahead of schedule and within budget. The Gateway West Project (jointly owned
by Idaho Power and PacifiCorp) includes approximately 1,100 miles of new high-voltage
transmission lines between the Windstar Substation near Glenrock, Wyoming and the
Hemingway Substation near Melba, Idaho, approximately 300 miles of 230 kilovolt (kV) lines in
Wyoming and approximately 800 miles of 500 kV lines in Wyoming and Idaho. The project is
scheduled for line segments to be completed in phases by 2018.134
IDAHO POWER COMPANY
Idaho Power’s 2011 IRP proposes significant amounts of energy efficiency and demand response
programs. By 2020, Idaho Power expects energy efficiency programs will reduce average annual
load by almost 160 aMW. Demand response programs are also forecast to reduce summer peak
load in 2020 by 385 MW.
The Langley Gulch combined-cycle combustion turbine is currently under construction and is
expected to be online in the summer of 2012. In addition, the Neal Hot Springs geothermal
project is expected to begin delivering energy to Idaho Power in 2012 and a significant amount of
PURPA wind projects will be completed by the end of 2012. Idaho Power currently has 395 MW
of wind generation on its system and an additional 363 MW is expected to be completed by the
end of 2012 which will bring the total to nearly 760 MW (nameplate).
Beyond 2012, Idaho Power’s next planned large transmission resource is the Boardman to
Hemingway transmission line. This project will allow Idaho Power to access the Pacific
Northwest energy market to serve growing summer peak load and also facilitate the delivery of
energy in the region year-round. The project is currently in the permitting phase and is expected
to be completed by the summer of 2016.
IDAHO’S MUNICIPAL AND COOPERATIVE UTILITIES
There are 28 rural electric cooperatives and municipalities providing electric service in Idaho.
These utilities are customers of the Bonneville Power Administration (BPA), receiving most of
their required power resource from BPA. BPA posted a 2010 Resource Program to help
determine the amount, type, and timing of new resource acquisitions. The program is guided by
and consistent with the Northwest Power and Conservation Council’s Sixth Power Plan, released
in February 2010. The Resource Program shows that most of BPA’s (including Idaho municipal
and cooperative customers) incremental energy needs for the next several years can be met by
meeting the conservation targets in the Council’s Sixth Power Plan and relying on short- and
mid-term market purchases. BPA will update the Resource Program periodically as load
forecasts, the Power Plan, and customer requirements and resource opportunities evolve.
BPA establishes targets for energy efficiency for the region based on the integrated regional plan
of the Council’s Sixth Power Plan. As a requirement of the BPA contract, the power rate for
utilities includes an allocation for conservation that will be paid back to the utility upon
completion of approved energy efficiency measures to help meet the target.

134 http://www.gatewaywestproject.com/project_info.aspx

2012 Idaho Energy Plan 77
Although historically the Idaho municipal and cooperative utilities have been able to rely on BPA
for all power needs, the new BPA contracts, effective October 1, 2011, will ‚cap‛ the amount of
federal power available to all utilities. Each utility will be faced with acquiring resources to meet
any future load growth. These resources may be developed or acquired independently or jointly
with other utilities, including BPA (tier two power purchase). Each utility will follow its own
City Council or board approved process for evaluating resources and determining the best power
resource acquisition. These processes are public processes and involve consideration of factors
related to load forecasting, power availability/variability, costs, and transmission availability.

3.2.1. Conventional Resources
Growing concerns over emissions and climate change regulations have made it impractical to
pursue the construction of new conventional coal-based generation in Idaho. Natural gas-fired
simple-cycle (SCCT) and combined-cycle combustion turbines (CCCT) have lower emissions and
are the primary conventional resources being considered by utilities. Because SCCT and CCCT
resources have a relatively low capital cost and natural gas prices are forecast to remain low,
natural gas resources are one of the least expensive new resources that can be built.

Natural gas plants also provide significant operational benefits because they can quickly ramp
their output up and down to follow changing electricity demands, including the changes in the
generation from wind projects. New advanced turbine technology, coming to market soon, will
increase opportunities to hybridize renewable and gas-based generation and offer more
opportunities for Idaho-based generation. This operational flexibility is becoming more valuable
as the amount of wind generation in the Pacific Northwest continues to increase.

The potential for carbon regulation is a risk factor that Avista, Idaho Power, and PacifiCorp
include in their IRP analyses as it impacts both existing resources and the selection of new
resources. With both coal and natural gas, air emissions are risk factors that Avista, PacifiCorp,
and Idaho Power include in their IRP analyses. In particular, coal is a highly carbon-intensive
fuel source, so future carbon dioxide emission limits and emission costs are specifically
addressed. Other emission such as particulates, sulfur dioxide, and oxides of nitrogen are also
considered.

Figure 3.1 indicates that natural gas is the preferred resource for our electric utilities in their
planning. This information, gained from the IRPs of Idaho’s three investor owned utilities, also
shows a commitment to renewable resources as well as system upgrades (including transmission,
distribution, and increasing the efficiency of existing power plants.)

The focus on natural gas seems like a logical conclusion at this point in time. Natural gas plants
are built in smaller, more modular units that can quickly ramp their output up and down to
follow changing electricity demands. Natural gas is relatively abundant, clean burning and easy
to distribute. Nearly 87% of U.S. natural gas used is domestically produced.135 Natural gas
(largely methane) burns more cleanly than the other fossil fuels (45% less carbon dioxide emitted
than coal and 30% less than oil) due the chemical nature of the fuel having a highly efficient
combustion process and being a less carbon-intensive fuel.136 It typically has greater price

135 http://www.fueleconomy.gov/feg/bifueltech.shtml
136 http://fossil-fuel.co.uk/natural-gas/the-advantages-of-natural-gas

2012 Idaho Energy Plan 78
volatility than coal. Nevertheless, natural gas units are often required because of the operational
flexibility that they provide. In addition, the capital costs of a natural gas plant are significantly
lower on a per-kW basis than a coal plant. Although natural gas is more environmentally
friendly than other fossil fuels, it is a non-renewable energy source, and its extraction process can
create environmental issues. Additionally, expanded pipeline access in the region and increasing
attractiveness of natural gas for direct use and power generation means that natural gas prices
are vulnerable to price volatility as observed in the past.

3.2.2. Renewable Resources
The utility IRPs show planned additions of hydroelectric, wind, solar, geothermal, and
landfill/biomass gas resources. The cost and operational flexibility of hydroelectric plants
depends upon the location, availability of a storage basin, timing of river flows, and fish flow
requirements. The most cost-effective and operationally flexible sites have already been
developed, so the potential for cost-effective hydroelectric power is limited. This is reflected in
the relatively small hydropower additions in the utility IRPs.
Wind power is a technology that can produce energy at a relatively low cost compared to other
renewable resources. However, since wind power is an intermittent power source, system
planners must assure that there is sufficient dispatchable generating capability (capacity) in the
rest of the electric system to meet instantaneous customer demands regardless of when or how
much wind is blowing or it decreases. In addition, the variability of wind resources can cause
overall system dispatch costs to increase. These ‚system integration‛ issues generally limit
projections of wind power expansion.

The large quantity of wind resources being built in the Pacific Northwest is driven in great part
by renewable portfolio standards (RPS) adopted by surrounding states. While Idaho does not
have an RPS, attractive PURPA rates have led to the construction of a considerable amount of
wind generation in Idaho. In addition to hydropower and wind energy, geothermal, biomass,
landfill gas, and digester plants are planned on behalf of Idaho customers through 2020. Because
these types of resources tend to be small in size and difficult to develop on a utility scale, many of
these projects will happen under PURPA.

3.2.3. Electricity Fuel Mix
Figure 2.14 indicates that Idaho currently receives nearly half of its electricity from hydroelectric
power facilities. Coal provides about 38 percent, and non-hydro renewables approximately 3
percent. Given the planned plant additions shown in Table 3.1 and the resource mix shown in
Figure 3.1, the share of power from non-hydro renewables is forecast to increase substantially.

3.2.4. New Resource Additions
Figure 3.1 shows the total planned additions by all companies through 2020, weighted by the
percentage of each company’s load located in Idaho. The actual resources may be located outside
of Idaho. Major planned generating facilities investments through 2020 are listed by online
service date in Table 3.1.

2012 Idaho Energy Plan 79
Wind
45.5%
Solar
1.0%
System Upgrades
9.3%
Natural Gas
42.0%
Hydro
1.0%
Thermal Upgrades
1.3%
Table 3.1. Planned Investments in Electric Generating Facilities by Idaho Investor-Owned
Utilities, 2012-2020
Year
2010-2015 Distribution Efficiencies 28 Avista
2011-2015 Oregon Solar Programs 19 PacifiCorp
2011-2021 Coal Plant Turbine Upgrades 65 PacifiCorp
2012 Northwest Wind 120 Avista
2012 Combined-Cycle Combustion Turbine
(Langley Gulch)
300 Idaho Power
2012-2018 Micro Solar- Water Heating 30 PacifiCorp
2014-2016 Combined-Cycle Combustion Turbine 1,222 PacifiCorp
2015 Shoshone Falls Upgrade 49 Idaho Power
2016 Boardman to Hemingway Transmission 450 Idaho Power
2018-2019 Existing Thermal Resource Upgrades 4 Avista
2018-2019 Northwest Wind 120 Avista
2018-2029 Wind, Wyoming 2,100 PacifiCorp
2019 Simple Cycle Combustion Turbine 83 Avista
2019 Combined-Cycle Combustion Turbine 475 PacifiCorp
2020 Simple Cycle Combustion Turbine 83 Avista
Note: Table 3.1 reports the preferred resource strategy from each utility based upon their 2011 IRPs.

Figure 3.1. Electric Investor Owned Utility Planned Additions Through 2020 (aMW)
Source: Avista, Idaho Power, and Rocky Mountain Power IRPs for 2011
3.2.5. New Resource Costs
Recent cost increases have significantly impacted the cost of new supply-side resources,
especially when compared to the cost of the existing resources. Figure 3.2 is taken from Idaho
Power’s 2011 IRP and shows the 2010 costs in dollars per megawatt hour (MWh) for
Idaho Power’s existing hydroelectric resources, coal generation facilities, and power purchased

2012 Idaho Energy Plan 80
$5 $33
$52
$89
$109 $109 $112 $116
$144 $150
$183
$229
$0
$50
$100
$150
$200
$250
$300
$/
M
W
h
NOTES:1) Cost of existing resources based on 2010 costs2) Cost of new resourcesbased on 30-year levelized cost estimates3) Cost of existing wind isfor the Elkhorn Wind Project only (Elkhorn produced approximately 80% of the wind generation purchased by Idaho Power during 2010).
Existing Resources
New Resources
from the Elkhorn Valley Wind Project. In addition, Figure 3.2 also shows the estimated cost of
energy from new resources considered in the IRP.

Figure 3.2. Energy Cost of Existing and New Supply-Side Resources
Source: Idaho Power 2011 IRP, http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf

While it is important to consider the costs presented in Figure 3.2, it is critical to point out that
these figures do not provide a comparable basis for evaluating all of the costs and values of the
resources considered without including other factors such the peak-hour capacity costs shown in
Figure 3.3. This is because the unit costs ($/MW/h) of the new resources shown are the total costs
for a project divided by the amount of energy generated. For a new resource such as wind, the
$89 is close to representing a total value for that resource, since the capacity contribution of a
wind plant is typically only about five percent of its nameplate. When compared with the
‚energy only‛ value of the CCCT of $109, the value of the wind project appears to be greater.
However, the ‚energy only‛ value of the CCCT is just a part of the total value of that resource,
which includes significant capacity on a planning basis as well as quick-start integrating and
load-following capabilities. A true total value comparison of the resources would involve either
stripping out the costs associated with the capacity and integration values of the dispatchable
resources to show an ‚energy only‛ cost comparison, or adding the required capacity and
integration costs to the non-dispatchable resources to allow for a total value look.

Further, the value that each type of resource provides in conjunction with the other resources in a
utility’s generation portfolio must also be considered. Supply-side resources have different
operating characteristics, making some better suited for meeting capacity needs while others are
better for providing energy. The low capital cost and dispatch capability of a simple-cycle
combustion turbine (SCCT) resource makes it a good choice for meeting capacity needs, as long
as it is needed for only short durations to meet peak-hour load. A geothermal resource typically
provides maximum generation during peak load periods, but because it is non-dispatchable and

2012 Idaho Energy Plan 81
$95 $167 $240 $462 $600 $670 $679 $745 $989 $1,303
$5,167
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$/
M
W

o
f

P
e
a
k
-Ho
u
r

C
a
p
a
c
i
t
y
100%89%100%74%
100%
100%100%100%
36%
5%
100%
generally provides constant generation year round (baseload), it is considered a better energy
resource. Wind, as discussed above, has favorable characteristics because it can displace fossil-
fuel sources of energy when the wind is blowing; however, it provides almost no peak-hour
capacity due to the variable and intermittent nature of the generation.

Figure 3.3. 30-Year Levelized Capital Cost of Peak-Hour Capacity
Source: Idaho Power 2011 IRP, http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
Figure 3.3 is also taken from Idaho Power’s 2011 IRP and shows the 30-year levelized capital cost
in dollars per MW of peak-hour capacity for many of the supply-side resources evaluated in the
2011 IRP. This metric provides useful information on the value of each resource type in terms of
providing peak-hour capacity. Idaho Power’s peak loads typically occur between 3:00 p.m. and
7:00 p.m. on hot summer days; the expected capacity factor for each resource type during this
time period is also shown in Figure 3.3.
Resources capable of providing 100 percent of nameplate capacity during peak load periods have
an obvious cost advantage when compared to resources with lower peak-hour capacity factors,
such as wind. Because wind, as stated above, can be counted on to only provide five percent of
nameplate capacity137 during the peak-hour, 20 MW of nameplate wind would need to be built to
get one MW of peak-hour capacity.

3.2.6. Transmission Planning
Pursuant to recent rules adopted by the Federal Energy Regulatory Commission (FERC)138,
Idaho’s investor owned utilities are required to participate in local and sub-regional transmission
planning and to coordinate with neighboring sub-regional planning groups. Two Pacific

137 The Northwest Power Planning Council Sixth Northwest Conservation and Electric Power Plan
Appendix D: Wholesale Electricity Price Forecast, page D-8,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan_Appendix_D.pdf
138 FERC Order Nos. 890 and 1000

2012 Idaho Energy Plan 82
Northwest planning groups – Northern Tier Transmission Group (NTTG) and Columbia Grid139 –
now produce transmission expansion and economic study plans on a periodic basis.
Additionally, Idaho’s electric utilities, the Idaho PUC, and the Idaho OER are participating in
numerous committees under the umbrella of the Western Electricity Coordinating Council
(WECC) to develop a Western Interconnection-wide ten-year Regional Transmission Expansion
Plan (RTEP).140 These local, sub-regional, and regional planning processes are providing the
opportunity to explore transmission project costs, benefits, and risks and their allocation to
customer group beneficiaries, as well as to explore opportunities for project coordination at the
sub-regional and regional levels in order to avoid costly duplication of facilities.
This building-block, bottom-up approach to transmission planning is being conducted in
processes that allow all interested stakeholders, including Idaho’s Consumer-Owned Utilities, to
participate by providing their customer load and new resource data for inclusion in the plan. By
participation in these planning processes, stakeholders can gain information to determine
whether, how, and at what cost they will be able to bring new resources to load.
FERC sets policies for investor owned utilities concerning new resource interconnection and
transmission service requests141. FERC sets cost-based rates for transmission services, as does
BPA through its own rate cases, the results of which are then subject to FERC approval. An
investor owned utility may seek incentive rates of return from FERC for specific transmission
projects.
Idaho’s consumer-owned utilities have historically taken transmission service from BPA, despite
their physical location on the grids of investor owned utilities. BPA has, in turn, relied upon a
system of agreements with the investor owned utilities known as General Transfer Agreements
(GTAs), which allow BPA to serve its customers without having to construct duplicate
transmission facilities. BPA delivers power to approximately 60 percent of its preference
customers through transfer arrangements. In 2011, BPA received notice from PacifiCorp of its
intent to terminate the GTA. This notice means BPA will be required to deliver power to systems
in Southeast Idaho after June 22, 2016, through another arrangement possibly including
constructing new transmission lines.142 It is unclear for many of these utilities whether, how, and
at what cost they will receive power resources and be able to bring new resources to load.

3.2.7. Conservation and Energy Efficiency Programs
As of 2009, energy efficiency accounted for only one percent of all electricity production (or off-
set of required production) in the United States. But in the Northwest, it accounted for 12 percent,
thanks to collaboration among a number of entities - the Bonneville Power Administration,
Northwest Power and Conservation Council, regional utilities, state agencies, and environmental
interests.143

139 Idaho Power and PacifiCorp are members of NTTG, and Avista and BPA are members of ColumbiaGrid.
140 RTEP activities are being funded by a grant from the U.S. Department of Energy as a part of the American
Recovery and Reinvestment Act of 2009.
141 BPA also follows these interconnection and transmission service request policies through FERC’s
reciprocity requirement for non-investor owned utilities.
142 http://www.ferc.gov/whats-new/comm-meet/2011/012011/E-5.pdf
143 http://www.bpa.gov/energy/n/

2012 Idaho Energy Plan 83
Bonneville Power Administration provides energy efficiency programs and services to all of its
customer classes, including the Idaho consumer-owned utilities it serves. Idaho Falls Power and
Kootenai Electric Cooperative are among Idaho’s most active participants in energy efficiency
measures in the consumer-owned utility sector. BPA participates in a variety of cutting-edge
energy efficiency efforts, sponsoring research in identifying, assessing, and developing emerging
energy efficiency technologies including the Pacific Northwest Smart Grid Demonstration
Project. They are also active in the area of demand response to help reduce peak demands and
transmission constraints. Voluntary demand response offers consumers incentives to voluntarily
reduce their electric loads at system peaks. In fiscal year 2009, BPA secured approximately 70
average megawatts of energy efficiency for the Northwest - enough energy to power 60,000
homes.144

Idaho electric utilities continue to place an emphasis on cost-effective conservation, energy
efficiency and demand response, and the Idaho Public Utilities Commission has steadfastly
directed Idaho utilities to pursue all cost-effective DSM programs.145 Energy efficiency and
conservation not only addresses current energy use, it is a reliable and cost-effective resource to
meet future energy demands. This new supply of energy comes in two forms, increasing energy
savings from existing programs and new savings from new programs. Today, Idaho’s utilities
analyze new energy efficiency and conservation as a viable supply resource when factoring their
total load and resource balance. Every two years, Idaho’s public utilities each file an updated
Integrated Resource Plan (IRP) which provides a 20-year forecast of future electrical load needs
and proposed resources to meet those needs, including their plans for energy efficiency,
conservation, and demand-side measures.
PacifiCorp is aggressively pursuing energy efficiency in several sectors. Their 2011 IRP estimates
that energy efficiency will represent the largest resource added to their system on an average
capacity basis through 2030. They estimate average annual energy efficiency measure additions
equivalent to about 130 MW, along with 250 MW of load control added through 2015, totaling
nearly 2,800 MW of capacity over the next twenty years. They are also closely examining energy
efficiency potential within their own system including in distribution feeders.146 Rocky Mountain
Power, the Idaho division of PacifiCorp, includes 19 aMW of energy savings in Idaho through
2021. Rocky Mountain has historically focused its demand-side efforts on programs that reduce
peak demand, rather than programs that reduce overall energy consumption. Most of its
electrical sales in Idaho come from the irrigation customer class. Rocky Mountain Power provides
a wide range of energy efficiency programs including a bundle of programs at 1.6 cents and
another bundle at 5.7 cents.147 This compares to energy only from new generation from their

144 http://www.bpa.gov/energy/n/innovation/index.cfm
145 For additional information please see IPC-E-10-27 regarding the changing landscape of financing electric DSR
at: http://www.puc.idaho.gov/internet/cases/elec/IPC/IPCE1027/ordnotc/20110517ORDER_NO_32245.PDF
146 PacifiCorp 2011 IRP:
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource_Plan/2011IRP
/2011IRP-MainDocFinal_Vol1-FINAL.pdf
147 PacifiCorp 2011 Integrated Resource Plan at 148.

2012 Idaho Energy Plan 84
natural gas plants that range from 6.7 and 13.4 cents, wind from 6 to 7.6 cents, coal from 7.4 to
11.5, and nuclear at 8.8 cents.148
Approximately 30 percent of Avista’s customer base is in Idaho. Their 2011 IRP includes energy
efficiency measures to reduce overall load growth by 48 percent, save 310 aMW of cumulative
energy and a peak reduction of 419 MW over the next 20 years. They estimate that efficiencies
gained in their distribution system will add another 13 aMW.149 Idaho energy savings are forecast
to amount to 93 aMW over this time period. Avista provides energy efficiency programs covering
a range of conservation and education programs to residential, low-income, commercial, and
industrial customer segments. Avista estimates that their entire portfolio of energy efficiency and
conservation (EE&C) programs costs between 2 and 4 cents per kilowatt hour saved, depending
on assumptions.150 This compares to energy only from new generation from natural gas plants at
9.9 cents, wind at 10 cents, coal at 13.9 cents, and nuclear at 14.2 cents.151
Idaho Power published its 2011 Integrated Resource Plan in June 2011. The 2011 IRP portfolio
development strategy divides the study period into two, 10-year periods, 2011-2020 and 2021-
2030. Resource portfolios in each 10-year period are designed to satisfy the energy and peak-
hour deficits forecast for these two periods. The IRP identified 233 aMW of additional demand-
side resources to be acquired over the 20-year planning period, 95% of which are expected to
occur in its Idaho service territory, and avoiding over $1.1 billion in power supply costs in 2011
dollars. Total peak summer capacity of the demand response program portfolio is targeted at 330
MW in 2011 and increases to 351 MW by 2016. New energy efficiency opportunities come from a
combination of new measures and program expansions. The cost to acquire energy efficiency will
vary between an average of 3.6 cents per kilowatt hour (kWh) for existing programs to 5.1 cents
per kWh for new program activities and measures.152 These future energy efficiency resources
include programs and measures designed to capture energy savings from all customer groups
including industrial, irrigation, commercial, and residential rate classes. Idaho Power figures
existing programs cost 3.6 cents per kilowatt hour, while new programs cost 5.1 cents per
kilowatt hour.153 This compares to energy only from new generation from natural gas plants at
10.9 cents, wind at 8.9 cents, coal at 18.3 cents, and nuclear at 22.9 cents.154
Each of the utility plans includes demand side resources that are less expensive than every type
of new generation.
3.3. NATURAL GAS SUPPLY
Idaho has been in a favorable position for accessing natural gas supplies since 1956. Northwest
Pipeline is an interstate natural gas pipeline running from the Four Corners area in the southwest

148 Rocky Mountain Power 2011 Integrated Resource Plan at 119, table 6.5. This uses the costs of generation
for the east side of the system and includes a $19 per pound adder to account for carbon risk. This adder is
consistent with the analysis of Idaho Power and Avista.
149 Avista 2011 IRP:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IRP.pdf
150 Avista 2011 Integrated Resource Plan at page 3-15, Figure 3.6.
151 Avista 2011 Integrated Resource Plan at pages 6-2 and 6-10.
152 Idaho Power 2011 IRP:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
153 Idaho Power 2011 Integrated Resource Plan at page 3.
154 Idaho Power 2011 Integrated Resource Plan at page 4.

2012 Idaho Energy Plan 85
to the British Columbia/Washington border. It has numerous laterals in Washington to assist in
serving northern Idaho. It was designed to be fed from both ends and in the middle at Stansfield,
Oregon with an interconnection with Gas Transmission Northwest coming from British
Columbia and Alberta. New connections to Northwest Pipeline will allow for more gas to move
into and out of the region, providing more price competition. Though Northwest Pipeline is
usually fully subscribed, the capacity segmentation has allowed more gas to get where it is being
consumed when it needs. In time, Idaho may need more access to additional pipeline capacity.
The rapid and very successful development of large tight sands gas reservoirs in the Rockies and
shale reservoirs in the U. S. and Canada have been beneficial to the Northwest in terms of long
term available supplies and competitive pricing. The development of shale gas in the Northeast
reduces the need for as much Western Canadian natural gas to flow to Eastern Canada and the
New England states thus improving the market for the California and the Northwest.
Additional natural gas underground storage in the Northwest and Canada has provided the
opportunity to help soften the higher prices of winter spot gas. The IPUC has worked with the
investor owned gas utilities to allow for the use of a wide variety of market pricing tools and
supply arrangements creating flexibility which benefits all ratepayers. Industrial consumers have
the flexibility to tailor their purchases to meet their consumptive needs. As the basis differential
from one consumptive center to another in the U.S. seems to level itself, we are still in a natural
gas supply positive balance in the Northwest that will bode well for prices competitive with
other regions.
Recent drilling in the Payette Basin of Southwestern Idaho appears to be successful in finding
and developing supplies of pipeline quality natural gas with some gas liquids. This production is
scheduled to go on line this fall and more will be known at that time. This will be the first
commercial production of natural gas liquids in Idaho. The natural gas supply/demand balance
for Idaho and the Northwest is expected to tighten in the future. Demand for natural gas is
growing in the region, particularly in the residential and commercial sectors which increases the
potential for future price volatility. In addition, increasing quantities of natural gas are burned to
make electricity.
Demand outside of the Northwest for natural gas from the Western Canadian Sedimentary Basin
and Rocky Mountain basins is also growing. Several major pipeline expansions are proposed,
dramatically increasing the capacity to transport Rocky Mountain and WCSB gas to more
lucrative eastern markets. At the same time, the development of oil sands deposits in Canada is
poised to significantly increase local demand for WCSB gas in Alberta.
Liquefied natural gas (LNG) shipped from foreign supply basins is expected to become an
important source of new supply. The siting of LNG terminals will be challenging, however, due
to concerns about safety and coastal development. So-called ‚Arctic gas‛ from northwestern
Canada and Alaska is also a potentially large source of future supply; however, developing the
pipeline infrastructure necessary to import that gas to demand centers in Canada and the lower
48 states faces significant cost and engineering challenges.
3.4. PETROLEUM AND TRANSPORTATION FUELS SUPPLY
Drilling and extraction techniques, primarily hydraulic fracturing and horizontal drilling for
natural gas extraction, have significantly altered the natural gas market landscape, opening up
fields of previously out-of-reach oil in the western United States and helping reverse a two-
decade decline in domestic production of crude. Natural gas reserves in the United States are

2012 Idaho Energy Plan 86
estimated to have increased by approximately one-third in the past decade alone.155 This impacts
the price and availability for Idahoans for both natural gas for direct use and the technologies
that may be chosen to supply electrical generation. Oil executives and analysts say that by 2015,
the new fields across the U.S. could yield as much as 2 million barrels of oil a day -- more than the
entire Gulf of Mexico produces now and enough to boost U.S. production 20 percent to 40
percent and, within 10 years, potentially reduce oil imports by more than half.156 The potential for
domestic oil shale development could usher in a tremendous regional source of petroleum right
on the borders of Idaho.
Hydraulic fracturing, known as ‚fracking,‛ allows engineers to drill down and horizontally into
rock, then pump in water, sand and chemicals at very high pressure in order to allow gas and
liquid extraction from tight sandstones and siltstones. It can be used for vertical and horizontal
wells. These same techniques have been successfully applied to shales, thus turning source rocks
into reservoir rocks. The industry has greatly improved the technique of drilling vertical wells
and then drilling a horizontal leg of great distance within the reservoir. The process of fracking
has been occurring for over 100 years. Over a million wells have been fracked in the United
States and most wells drilled today are given this treatment, although to various degrees of
intensity. The primary and overriding environmental concern is the correct process of running
and cementing pipe in place to seal freshwater zones from contamination and invasion from
deeper waters and frack fluids.
Over the time frame from the 1920s to present day, a number of companies and individuals have
explored for oil and gas in Southwestern and Southeastern Idaho. Shows of hydrocarbons have
been found but no commercial discoveries have been made. Of course, the economics have
always depended upon an infrastructure being in place whereby natural gas can be sold and
utilized. The price for the commodities had to justify the risk and costs of the search.
In recent years, interest in the Payette Basin of Washington, Payette, and Malheur (Oregon)
Counties has increased. To date, 11 wells have been drilled with seven wells completed as
potential producers. The wells have tested commercial quantities of pipeline quality natural gas
and a few wells have also tested high gravity condensate. Three of the 11 wells can produce at
economic levels naturally. Four require stimulation through fracking. The other four were dry.
The estimated reserves of the production wells are in the 250 billion cubic feet range157 with
seismic analysis demonstrating numerous potential drilling targets. The project is awaiting
pipeline construction with a tap into the interstate Northwest Pipeline which runs through the
area. Several additional oil and gas companies are also leasing the oil and gas mineral interests
from landowners and mineral interest owners in the area and reprocessing the seismic lines that
have been produced in past years. The state will earn a 12.5 percent royalty on any production
from wells located on endowment lands. It also charges a two percent production tax, regardless
of where the well is located. Some of that revenue would go to public schools and local
governments.158 The Idaho Petroleum Council estimates that Idaho has an expected production
value of $205 million. If that is the case, the state could realize a royalty of nearly $11 million in

155 http://www.naturalgas.org/overview/resources.asp
156 ‚New Drilling Method Opens Vast U.S. Oil Fields‛, Associated Press, Published February 10, 2011
157 http://www.standard.net/topics/business/2011/02/16/natural-gas-driller-has-hopes-idaho
158 http://www.standard.net/topics/business/2011/02/16/natural-gas-driller-has-hopes-idaho.

2012 Idaho Energy Plan 87
severance taxes and royalties, nearly $6 million of which will go directly to Idaho public
schools.159
The Idaho Oil and Gas Conservation Commission approved temporary rules for hydraulic
fracturing. The Commission decided not to put a permanent ban on horizontal fracking, where
fluids are pumped into shale formations at high pressure to allow natural gas to permeate
through for recovery. This process props open fractures and entices gas to flow more freely.

Petroleum usage is related to fuel costs, vehicle usage, number of vehicles, and changing vehicle
technology. In 2009, the estimated vehicle miles traveled (VMT) in Idaho was 15.251 billion. This
is an estimated 10,008 vehicle miles traveled per capita in Idaho compared to a national average
of 9,779 miles per capita in 2009.160 Increasing fuel efficiency due to CAFE legislation, lower
vehicle weights from improved design and new materials, and improved combustion
technologies and optimized fuel systems may decrease total petroleum demand as vehicle fuel
efficiency is estimated to increase by 25-40% for passenger vehicles and 20% for commercial
vehicles by 2015.161 Urban transportation planning and personal behaviors, such as increased use
of carpooling and public transportation, can also reduce transportation fuels demand. The use of
alternative liquid fuels and electricity as a transportation fuel could also affect future petroleum
demand.
There is considerable interest in using electricity as a transportation fuel with the first modern
mass market plug-in electric passenger vehicles (hybrid-electric Chevrolet Volt and the full-
electric Nissan Leaf) recently becoming available. While plug-in electric vehicles are likely to be
a small fraction of the market (estimated at about 1.4% of the global light duty vehicle market in
2017162) they have important potential implications on electrical generation, the transmission grid,
and electricity costs. As such, plug-in electric vehicle penetration in Idaho and its effects should
be monitored. Vehicle charging during daytime peak loads would result in the need for
additional generation capacity, more transmission assets, and could affect grid reliability
although smart grid technology could help mitigate impacts. However, while plug-in electrics
represents a new load source, if charged at night during low loads, they could potential lead to
lower electricity costs as a result of higher electricity sales but without the need for additional
capital costs (and assuming that there are no additional reliability or grid maintenance costs).
In a sense, transportation fuel usage is the energy "elephant in the room" in Idaho.
Transportation fuels provide about 31 percent of the energy used in Idaho and represent
(gasoline) an average of 57 percent of household energy expenditures. Further, the large majority
of our liquid transportation fuels are imported. While Idaho has approximately 60 million
gallons per year of ethanol production capacity and about 1.5 million gallons of biodiesel
production capacity, over 1 billion gallons of transportation fuels were consumed in Idaho in

159 http://idahopetroleumcouncil.com/wp-content/uploads/2011/08/Economic-Benefits.pdf
160 U.S. Department of Transportation, Bureau of Transportation Statistics, State Transportation Statistics,
2009
161 U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Vehicle Technologies
Program, DOE/GO-102010-3058, May 2010
162 Pike Research, Electric Vehicle Market Forecasts, 3Q 2011

2012 Idaho Energy Plan 88
2009.163,, Also, production of these renewable biofuels is often at less than capacity,
depending upon the price and availability of feedstock.
3.5. ENERGY EFFICIENCY AND CONSERVATION
The Northwest Power and Conservation Council develops estimates of the amount of
conservation that can be acquired cost‐effectively in the four‐state Pacific Northwest region. The
Power Council’s Sixth Northwest Power Plan concluded the entire region could meet 85% of
future load growth through cost-effective efficiency over the next 20 years. This is double the
amount in the Fifth Power Plan and is attributed to better technology, falling costs, and new
program designs. The Council noted that ‚failure to achieve the conservation included in the
plan will increase the cost of, and risks to, the power system . . .‛ and hinder other states efforts to
meet their carbon reduction goals. The Power Council’s most recent estimate suggests that
approximately 5,900 aMW of conservation are achievable in the four state region between 2010-
2030.166 Current electric utility integrated resource plans published by Idaho’s investor owned
utilities comprise approximately 350 aMW over a similar period of time.
Idaho has a significant amount of cost-effective energy efficiency and conservation (EE&C)
available. When considering the size of the available EE&C supply, analysts investigate it at
three levels: 1) The technical potential envisions every electrical use with the most efficient option
currently available regardless of cost. 2) The economic potential is a subset of this supply where
the benefits exceed the costs; meaning electrical demand is met through efficiency for less cost
than a generation resource. 3) The achievable potential is a smaller subset that factors in expected
customer participation in programs and constraints on investments in EE&C.167 This technique is
different than the method used by the Power Council.
While EE&C is consistently shown to be cost-effective and available in sufficient supply, some
uncertainty remains. All utilities, not just in Idaho, continue to improve their ability to evaluate,
measure, and verify actual energy savings. Also, overall energy conservation depends on each
individual consumer taking steps to use energy wisely. Some people are simply more likely to
conserve energy than other people.
Idaho can likely realize substantial benefits by acquiring all economic EE&C. These types of
projects also tend to stimulate sales of materials in Idaho stores and projects to improve buildings
and manufacturing processes create local jobs. Developing new, innovative techniques and
materials are valuable assets Idaho could export to other states. In the face of the rising cost of
energy, EE&C programs give individuals the tools to control their energy bills by reducing their
energy consumption.

163 http://ww.eia.gov/state/seds, Table C2 Energy Consumption Estimates for Major Energy Sources by
Physical Units, 2009
164 http://www.ethanolproducer.com/plants/listplants
165 http://biodiesel.org/buyingbiodiesel/plants
166 Northwest Power and Conservation Council. (2010). Sixth Northwest Conservation and Electric Power Plan
(No. Council Document 2010-09). Retrieved from
http://www.nwcouncil.org/energy/powerplan/6/default.htm
167 National Action Plan for Energy Efficiency (2007). National Action Plan for Energy Efficiency Vision for
2025: Developing a Framework for Change. www.epa.gov/eeactionplan.

2012 Idaho Energy Plan 89
State policymakers can play a significant role in closing the gap between the economic potential
and the achievable potential. Because the economic potential is defined as providing greater
benefits to citizens than costs, policymakers can be confident in taking on this role. Policies that
can help close the gap include providing tax incentives for acquiring cost-effective EE&C,
reducing regulatory burdens such as conflicting building or zoning codes, and educating citizens
about the benefits of using energy wisely. Such actions should be considered based on value
propositions for specific projects.
Policymakers can also lead by example by acquiring all the economic EE&C at public facilities.
The Office of Energy Resources K-12 Schools Efficiency Program is an excellent example. Using
federal stimulus funding, OER contracted with private companies to install new lights and
upgrade heating, cooling, and ventilation systems in schools across the state. As a result, schools
see lower power bills, freeing up dollars for students, and better learning environments. This
program is a great example of using EE&C as a resource to meet schools energy demands that
results in both saving money and improving classrooms.168
3.6. ENERGY TECHNOLOGY TRENDS
Due primarily to the importance of energy security -- economic, environmental, and national
security -- one can expect continued and increasing investments globally for energy research and
development. Energy technologies, novel systems, and approaches stemming from these
investments will impact every facet of energy generation, transmission, and use and will, most
likely, offer opportunities and risks not foreseen today.
Areas to closely monitor include advances that enable transmission capability and improve
system operations, which will impact access to renewable energy and its integration into the
power system. Emerging smart grid technologies could make it possible for consumers to help
balance their supply and demand. By providing information and tools to consumers to adjust
electricity use in response to available supplies and costs, the capacity and flexibility of the power
system could be enhanced and may have a significant impact on Idaho energy networks. Smart
grid development also may facilitate the deployment of plug-in hybrid electric vehicles that
could improve the use of available generating capacity and help reduce carbon emissions in the
transportation sector. The development of new energy storage technologies will impact both the
feasibility of fuel-switching in the transportation sector (gas to electric) as well as grid stability
through grid-scale energy storage. In the future, power generated by geothermal resources,
gasified coal with carbon sequestration, advanced nuclear, or currently unknown technologies
could become available to Idaho. New technologies and approaches, such as system
hybridization, offer the potential to fundamentally change the power system while improving its
efficiency and reliability.169
Idaho holds strategic advantages in playing a major role in bringing new energy technologies to
market due to numerous successful high-tech related businesses, entrepreneurial startups, a
national laboratory focused on energy research, development and demonstration, and
universities with substantial energy research and development portfolios.

168 See Idaho Office of Energy Resources K-12 School Efficiency Project at
http://www.energy.idaho.gov/stimulus/state_programgrants.htm
169 Northwest Power Planning Council Sixth Northwest Conservation and Electric Power Plan, February
2010, http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf

2012 Idaho Energy Plan 90
3.6.1. Nuclear Technology Look-Ahead
Technology maturity, availability, and attributes would influence the viability of commercial
deployment of nuclear electric production in Idaho. New reactor designs available today or in
the near future include five advanced water-cooled reactors that now received, or are very near
to receiving (2013 time frame), design certification from the United States Nuclear Regulatory
Commission (US NRC). All of these designs are very large production units (in excess of 1,000
MWe), and three of these designs (or variants that are substantially the same technology) are
either operating (GE-Hitachi Advanced Boiling Water Reactor) or under construction
(Westinghouse AP-1000 and Areva Evolutionary Power Reactor) outside of the United States.170
This experience with construction and operation of new designs could provide substantial data to
assist in making business and policy decisions regarding deployment in Idaho.
Reactor technologies possibly available in a ten-year time frame include several water-cooled
small modular reactor designs (SMR). SMRs are presently of interest with national energy policy
and business communities because of their small size (generally less than 300 MWe per module),
enhanced safety features, and more favorable financial outlay characteristics (theoretically
offering lower construction costs and shorter construction schedules). High temperature gas
cooled reactors (HTGRs), most notably embodied in the U.S. Department of Energy’s Next
Generation Nuclear Plant (NGNP) Program, either in a small modular configuration or in larger
units, may be further developed. These classes of systems are topics of research by DOE national
laboratories and under consideration for deployment assistance by DOE. Progress in these areas
should be monitored and the Idaho National Laboratory’s role in demonstration of these
technologies should be considered.
Additional areas of technology advance that may impact the viability and desirability of
commercial nuclear power in Idaho include systems hybridization (coupling nuclear reactors
with renewable or fossil energy inputs to create synthetic fuels while improving transmission
system stability) and development of dry-cooling technologies (reducing the water consumption
/ withdrawal associated with nuclear generation). Advanced simulations and computing
approaches, coupled with advances in system diagnostics and control techniques, hold promise
for enhancing operability, maintainability, and safety of existing and future nuclear systems.
These advances may also be transferable to non-nuclear energy systems, offering greater
economic competitiveness and breadth of deployability of renewable and fossil systems. Nuclear
energy-related technology markets may offer attractive business and employment opportunities
for Idaho separate from building a nuclear power plant in the state. With the global growth in
nuclear power expected to continue, areas such as nuclear fuel services, nuclear and non-nuclear
component testing and evaluation, and related research and professional services are important
areas of consideration for Idaho with potential economic impact and energy supply
requirements. The development and demonstration of advanced used fuel processing
technologies, used fuel storage and related management systems, and advanced fuels for existing
nuclear reactors is continuing (and in some cases accelerating). Advances in these areas may
provide opportunities for Idaho in research, development, demonstration, and deployment of
fuel management systems. The announcement of plans to construct a large enrichment plant in
Idaho exemplifies opportunity in global nuclear fuel services while national used fuel service
markets could provide additional fuel cycle business opportunities.

170 http://www.world-nuclear.org/info/inf08.html

2012 Idaho Energy Plan 91
3.6.2. Clean Coal Technology
"Clean coal technology" describes a new generation of energy processes that sharply reduce air
emissions and other pollutants from coal-burning power plants. Clean coal technologies are
several generations of technological advances that have led to more efficient combustion of coal
with reduced emissions of sulfur dioxide and nitrogen oxide. The U.S Department of Energy
(DOE) administers the clean coal technology program to encourage and support public/private
partnerships to research, develop, and demonstrate clean coal technologies that ultimately can be
brought to large-scale commercial deployment. This program has resulted in more than 20 new,
lower cost, more efficient and environmentally compatible technologies; power plants being built
today emit 90 percent less pollutants (SO2, NOx, particulates and mercury) than the plants they
replace from the 1970s, while coal use has tripled, according to government statistics. Some of the
new ‚clean coal‛ technologies developed include: fluidized-bed combustion (where limestone
and dolomite added during combustion mitigate sulfur emissions), flue gas desulfurization (also
called ‚scrubbers‛), low nitrogen oxide burners, catalytic reduction, and electrostatic
precipitators. Work is also being done in the areas of coal liquefaction (the conversion of coal into
synthetic oil) and gasification (converts the coal to burnable gas with the maximum amount of
potential energy from the coal being in the gas). Carbon monoxide from coal gasification can also
be used as a feedstock to produce a number of energy products, such as synthetic transportation
fuel and fertilizer, this latter application being the focus of a proposed plant in Idaho. A critical
research area is in CO2 capture and storage technologies.171 A number of means exist to capture
carbon dioxide from gas streams, but they have not yet been optimized for the scale required in
coal-burning power plants. The most promising "clean coal" technology involves using the coal to
make hydrogen from water, then burying the resultant carbon dioxide by-product and burning
the hydrogen. The greatest challenge is bringing the cost of this down sufficiently.172 The DOE is
sponsoring several research projects to examine the potential for ‚clean coal‛ and natural gas
systems.173
3.6.3. Energy Storage Technologies and Approaches
Energy storage technologies are often referred to as a way to shift time and smooth the delivery
of renewable energy or more efficiently utilize baseload energy resources during off-peak
demand periods. There are multiple ways of storing energy: chemically, potentially or kinetically.
For example, batteries store energy chemically, capacitors and pumped hydro store energy
potentially and a flywheel store energy kinetically. But the cost of energy storage infrastructure is
not insignificant and utility-scale storage systems are only now being developed. Grid-scale
battery and related storage technologies are the subject of considerable research and
demonstration interest.174
There are several thermal (heat) storage technologies that could provide energy storage at a
utility level. At present there exist concentrated utility-scale solar power plants that have the
ability to store thermally. Many use a special molten salt or other heat-retaining substance to
store the sun’s energy as heat which can be released as needed through the generation of steam
that is run through turbines. This type of thermal energy storage plant costs roughly $50 per
kilowatt of capacity to install, providing energy at roughly 13 cents per kilowatt-hour, about

171 http://www.nma.org/pdf/fact_sheets/cct.pdf
172 http://world-nuclear.org/info/inf83.html
173 http://fossil.energy.gov/programs/powersystems/index.html
174 DOE 2011 Strategic Plan: http://energy.gov/downloads/2011-strategic-plan

2012 Idaho Energy Plan 92
twice the cost of energy generation in a modern coal-fired power plant. Research is on-going to
improve this technology and bring the costs down.175
The U.S. Department of Energy is providing $7 million over the next five years for independent
cost analyses that will support research and development efforts for fuel cells (including those for
transportation) and hydrogen storage systems.176 There are several different types of fuel cells,
but basically they are electrochemical devices that combine hydrogen and oxygen to produce
electricity, with water and heat as its by-product. Since the conversion of the fuel to energy takes
place via an electrochemical process, not via combustion, the process is clean, quiet, and highly
efficient – two to three times more efficient than fuel burning.177 Hydrogen is an energy carrier,
not an energy source, meaning that it stores and delivers energy in a usable form. Research is
underway to determine how it can most effectively and efficiency be utilized in both
transportation and energy, but additional study is required to better understand the mechanism
of hydrogen storage in materials under practical operating conditions and to overcome other
critical challenges.178
Another area of potential interest involves compressed air storage, in which excess energy
(usually generated at night when demand is low) is used to run a compressor which pumps air at
high pressure into an underground cavern. The next day, when demand is highest, the air is
allowed to rush back out to raise the efficiency of a gas turbine, which generates electricity.
According to the U.S. Department of Energy's Sandia National Labs, compressed air energy
storage is a low-cost, environmentally benign way to store large volumes of power.
Unfortunately it requires very specialized environmental elements.179 Compressed air has about
ten times the storage capacity of the same amount of water.180 This same basic system can be
applied in a pumped storage system, where excess electricity to pump water from a lower to a
higher reservoir and then, when more power is needed, let the water run back down through a
turbine. There are over 100 pumped storage facilities in the world.181
Another fairly well-known potential storage source is the flywheel. A flywheel energy storage
system is a unique energy storage system, where energy is maintained as rotational energy as the
wheel or the rotors are accelerated with extreme speed to mechanically store energy for future
use. This stored energy can then be easily extracted and used with the help of a generator, which
converts mechanical energy into electrical energy. It is similar to a battery storage system, with
the difference being that batteries store energy in the chemical form which is later converted to
electric energy. 182

175 http://www.scientificamerican.com/article.cfm?id=how-to-use-solar-energy-at-night
176 http://energystoragetrends.blogspot.com/2011/08/doe-awards-nearly-7-million-to-advance.html
177 http://www.fuelcells.org/
178 http://www.hydrogen.energy.gov/pdfs/doe_h2_storage.pdf
179 http://www.ecomii.com/investing/compressed-air
180 http://zebu.uoregon.edu/1996/ph162/l10a.html
181 http://www.ecomii.com/investing/pumped-hydroelectric
182 http://edmortimer.wordpress.com/2011/07/05/everything-i-need-to-know-about-flywheel-energy-storage-
system/

2012 Idaho Energy Plan 93
3.6.4. Distributed Energy Systems
Also called on-site generation, dispersed or decentralized generation, distributed energy systems
are small-scale (usually up to 50 MW according to the Electrical Power Research Institute)183
electrical generating facilities that are located close to energy consumers. In recent years there has
been a resurgence of interest in distributed generation due to developments in distributed
generation technologies, constraints on existing transmission lines and on the construction of new
transmission lines, and concerns about climate change.
Distributed energy systems can include micro-turbines, photovoltaic installations, combined heat
and power, biomass, wind, and gas turbines, and can be favored due to their relatively low-cost
operation, small size, flexibility as well as many of distributed energy technologies being
renewable in nature. These systems can be placed close to customer load, reducing or eliminating
the need for transmission. In some cases a distributed generation unit can even be used as an
alternative to connecting a customer to the grid. In addition, well chosen distributed generation
locations can even reduce grid losses and can provide ancillary services which improve grid
stability (such as reactive power, frequency and/or voltage control).184 Retail electric utilities as
well as their customers can use distributed generators to avoid or defer investments at the local
level. For example, to meet seasonally high demand, a utility could install a small-capacity
generator at a site on the distribution portion of its network instead of investing in increased
capacity of "upstream" power lines and transformers. Small generators can be used to relieve
periodic local congestion. Security benefits may come from increasing the geographic dispersion
of the nation's electricity infrastructure. However, the prospects for widespread adoption of
distributed generation technologies are not at all certain.185
Even with the development of these additional resources, transmission lines will still be essential
to energy delivery, though the need for additional capacity may be reduced as more energy is
generated locally. Capital costs for building these units can be much higher than the cost for large
central plants, and concerns such as permitting, siting and environmental impacts remain. These
plants also tend to be less efficient than large-scale generating sources of the same type. In
addition, if the distributed generation source is non-dispatchable (such as wind or photovoltaic
systems), they reduce rather than enhance system security and add the need for additional
system resources to provide backup generation due to their variable power supply.186
The introduction of distributed resources with their often intermittent nature brings with it the
prospect of imbalances in transmission and distribution grids, requiring complex and expensive
integration and power-balancing mechanisms. Distributed power is accompanied by
unpredictable short-term variations in the supply-demand balance of the distribution grid, which
can result in grid instability. Smart grid technology and energy storage systems would be
valuable in reducing these risks, but these systems are not yet available. So, in addition to
adapting to the shorter run times resulting from increased amounts of renewable and distributed

183 ‚Distributed Generation: A Definition‛ by Thomas Ackerman, Electric Power Systems Research,
December 5, 2000: http://paginas.fe.up.pt/~cdm/DE2/DG_definition.pdf
184 ‚Distributed Generation: Definition, Benefits, and Issues‛, G. Pepermans et al, K.U. Leuven Energy
Institute, Katholieke Universiteit Leuven.
185 Congressional Budget Office, ‚Prospects for Distributed Electricity Generation‛, September 2003,
http://www.cbo.gov/doc.cfm?index=4552&type=0&sequence=4
186 ‚Distributed Generation: Definition, Benefits, and Issues‛, G. Pepermans et al, K.U. Leuven Energy
Institute, Katholieke Universiteit Leuven.

2012 Idaho Energy Plan 94
power generation in the energy supply, in most cases conventional generators will still be
required to provide backup resources for these systems and, in addition, will be required to
change the way they operate in order to meet additional flexibility requirements.187
3.6.5. Unconventional Fossil Energy Extraction
New technologies are being developed to improve recovery from conventional oil reservoirs and
from unconventional oil and gas reservoirs and to safely utilize coal that is currently deemed un-
minable. Significant amounts of oil are left in conventional reservoirs in mature oil fields, only
some of which can be accessed through existing enhanced oil recovery techniques. Enormous
amounts of hydrocarbons are locked in unconventional reservoirs (oil shale, heavy oil, tar sands)
and could be a game-changing resource in terms of U.S. energy security if research can develop
ways to generate oil from the shale’s kerogen in ways that are energy-efficient and
environmentally sustainable. Fractured shale reservoirs are currently being developed using a
combination of horizontal drilling and hydraulic fracturing but these methods must be
demonstrated to be safe and environmentally acceptable. Economic extraction of these resources
will require research to provide a better understanding of the nature of these reservoirs, as well
as new technologies for cost-effectively producing the oil and new strategies to safely utilize coal
resources that cannot be mined with conventional methods.188

Though total consumption of renewable fuels is expected to grow 2.8 percent per year, overall
growth in energy demand will mean that the contribution of fossil energy to the nation’s energy
mix will remain very significant. Energy consumption will continue to grow and in particular,
liquid fossil fuels will remain a significant part of our national energy supply for the next quarter
century and more. Demand for liquid fossil fuels will require the U.S. to continue to import
roughly half of its crude oil supply for the foreseeable future.189 But in the future, unconventional
fossil energy extraction could play an important part in enhancing national economic growth and
strengthening national security by reducing dependence on foreign energy supplies.
3.6.6. Transportation190
Conventional transportation technologies usually involve the use of fossil fuels for vehicle
propulsion. Conventional internal combustion engine (ICE) technology offers a path for
continuous improvements in vehicle efficiency with technological advances directed toward
reducing vehicle fuel consumption. Vehicle weight and size reduction could significantly reduce
fuel consumption and greenhouse gas (GHG) emissions. Direct weight reductions through the
substitution of lighter materials as well as basic vehicle design changes will improve vehicle
mileage. An especially promising opportunity is the development and deployment of more
efficient propulsion systems, engines and transmissions. At constant vehicle performance and

187 The Boston Consulting Group, ‚Toward a Distributed Power World‛, Frank Klose et al,
http://www.bcg.com/documents/file51254.pdf
188 U.S. Department of Energy, National Energy Technology Laboratory, ‚Unconventional Fossil Energy
Resource Program‛, http://www.netl.doe.gov/publications/factsheets/program/Prog100.pdf
189 Ibid.
190 ‚On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG Emissions‛,
Massachusetts Institute of Technology, Laboratory for Energy and the Environment, July 2008,
http://web.mit.edu/sloan-auto-
lab/research/beforeh2/otr2035/On%20the%20Road%20in%202035%20Exec%20Summary_MIT_July%202008.
pdf

2012 Idaho Energy Plan 95
size, a 30–50% reduction in the fuel consumption of new light-duty vehicles is feasible over the
next 20–30 years. Radically different technologies, such as plug-in hybrids and hydrogen and fuel
cells, could take more than 30 years to be developed to the point where they are market feasible
and deployed in substantial numbers.
Over a time horizon of 20–30 years, the gasoline hybrid-electric vehicle (HEV) offers a promising
path to cost-effective reduction in fuel use. It must be acknowledged, however, that plug-in
hybrids need electricity for recharging their batteries, and in most cases the electricity will have
to be generated centrally and distributed through the power grid. The efficiency of electricity
generation and transmission must be counted in determining the overall energy efficiency. For
very large market penetration of plug-in hybrids, electrical generation capacity will have to be
increased and the grid will have to be upgraded.
The plug-in hybrid electric vehicle (PHEV) offers important advantages over the two all electric
alternatives, fuel cell and battery-electric vehicles. It is no more range-limited than existing
vehicles, and requires only modest changes to fueling infrastructure for battery recharging. The
main technical challenges for plug-in hybrids are improving the energy storage capacity of
lithium-ion batteries, demonstrating their reliability for automotive use, and reducing their cost.
However, due to the likely GHG emissions from the electricity production required, the GHG
emissions reduction that plug-ins would achieve in the nearer term are comparable to those
available from change-sustaining gasoline hybrids at a lower cost.
Even with optimistic battery assumptions, the battery electric vehicle (BEV) is not competitive
with other options on a mass-market level, particularly in comparison to the different plug-in
hybrid configurations. Configuring a vehicle to offer a relatively modest 200-mile range currently
requires a prohibitively large and expensive battery pack. And while the BEV completely
displaces petroleum, the weight of the battery pack significantly increases the tank-to-wheel
energy use compared to a plug-in hybrid operating in charge depleting mode. With the current
electric grid source mix, GHG emissions from electric power generation and grid recharging of
batteries result in little or no reduction of well-to-wheels GHG emissions relative to
improvements in more conventional technologies. Development of significantly improved
batteries with reasonable cost could result in increased BEV market penetration.
Fuel cell vehicle (FCV) assessment is characterized by a high degree of technical and cost
uncertainty with respect to both power plant and energy supply and storage. It is not yet clear
that fuel cell vehicles will offer the real-world reliability and longevity that is commonly expected
of general purpose vehicles. Hydrogen fuel cell vehicles also continue to suffer from high cost
and other limitations. Their limited market penetration means that their impact on fuel use and
emissions is unlikely to be significant over the next few decades. In addition, hydrogen fuel cell
vehicles will probably require centralized production of hydrogen and development of a major
distribution and delivery infrastructure.
3.6.7. Bioenergy
Bioenergy is renewable energy derived from biological sources to be used for heat, electricity, or
vehicle fuel. Currently it comes primarily from wood, wastes, ethanol from corn fermentation,
and biodiesel from oil seeds and animal fats, although it can also come from agricultural wastes
and dedicated energy crops, including switchgrass, miscanthus, and poplar used to make
advanced biofuels. Biomass energy can theoretically be made from any material that is, or was,
living.

2012 Idaho Energy Plan 96
The low energy content of biomass compared to fossil fuels requires a higher input of feedstock,
posing significant logistic and economic challenges. In addition, conversion technologies (e.g.,
waste incineration, anaerobic digestion, gasification, pyrolysis, pellet heating, co-firing) need to
be further improved in order to make large gains in this potential energy source. Because
biomass is a relatively diluted energy compared to concentrated fossil energy, it presents unique
tradeoffs concerning land and water use, delivery, and intensity.
Much of the emphasis on ethanol has centered upon its use as a means of reducing carbon
dioxide emissions. However, according to a recent study, most prior studies have found that
substituting biofuels for gasoline will reduce greenhouse gases because biofuels sequester carbon
through the growth of the feedstock. There may be issues with carbon emissions as farmers
worldwide respond to higher prices and convert forest and grassland to new cropland to replace
the grain (or cropland) diverted to biofuels.
Biofuel derived from plant materials is among the most rapidly growing renewable energy
technologies. The total annual demand for biomass has increased steadily over recent years and
currently accounts for over 10% of global primary energy consumption.191 In the United States,
ethanol might displace about 10% of gasoline by 2025.192 A recent study concludes that, on
average, using biomass to produce electricity is 80 percent more efficient than transforming the
biomass into biofuel. In addition, the electricity option would be twice as effective at reducing
greenhouse-gas emissions.193 However, liquid biofuels do provide some advantages in
transportation applications that may make the lower conversion efficiency acceptable.
Ethanol displaces gasoline by two-thirds, volume for volume, in terms of energy content. Because
ethanol has a higher octane rating than gasoline, engines designed for ethanol-based fuels can
have higher efficiencies and partially compensate for its lower energy content. The GHG
emission reductions provided by different feedstocks are substantially different, but the
contribution of biofuels is likely to be constrained by land availability, as well as by biomass
yields, their environmental impacts, agricultural policy, energy and environmental policy, and
costs.194 All of these results raise concerns about large biofuel mandates and highlights the value
of examining the ‚big picture‛ when evaluating these resources.195

191 U.S. Department of Agriculture, Economic Research Service:
http://www.ers.usda.gov/features/bioenergy/
192 ‚On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG Emissions‛,
Massachusetts Institute of Technology, Laboratory for Energy and the Environment, July 2008,
http://web.mit.edu/sloan-auto-
lab/research/beforeh2/otr2035/On%20the%20Road%20in%202035%20Exec%20Summary_MIT_July%20200
8.pdf
193 Massachusetts Institute of Technology, Technology Review, May 8, 2009:
http://www.technologyreview.com/energy/22628/
194 ‚On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG Emissions‛,
Massachusetts Institute of Technology, Laboratory for Energy and the Environment, July 2008,
http://web.mit.edu/sloan-auto-
lab/research/beforeh2/otr2035/On%20the%20Road%20in%202035%20Exec%20Summary_MIT_July%202008
.pdf
195 Science: The World’s Leading Journal of Original Scientific Research, Global News, and Commentary,
February 2008, http://www.sciencemag.org/content/319/5867/1238.abstract

2012 Idaho Energy Plan 97
3.6.8. Energy Efficiency Trends
Cost effective energy efficiency technologies currently exist and their increased implementation is
often the most economical and effective way to reduce our nation's energy consumption. New
and improved energy efficiency and demand reduction technologies are continually being
developed.
In the United States today, buildings account for 40% of primary energy consumption and
industrial processes count for another 32%, with the transportation sector accounting for 28%.196
Studies by government and industry researchers have found that using currently available high-
performance energy efficiency technologies can reduce a building’s energy consumption and CO2
emissions by 30% to 50%. ‚Smart Systems,‛ measurement systems that show users actual data on
energy savings, highlight inefficiencies and problem areas over the building lifecycle, and that
report on consumption (segregated by end-uses) are being developed to help track energy usage
and opportunities for savings. Buildings are also being designed with an integrated approach in
which all components and subsystems are considered together in an effort to optimize overall
building performance, as are increased usage of solar heating and lighting, energy storage
technologies, and natural ventilation.
Some of the more exciting developments in this area include glass panels which can instantly tint
themselves or switch from transparent to opaque, new building envelop membranes that provide
dynamic increases or decreases in air and moisture permeability, systems that route visible
sunlight throughout buildings, technologies for capturing and recycling waste heat, and systems
that monitor occupant usage and automatically adjust as needed.
Some of the barriers to implementing new energy efficiency technologies include the cost of the
technologies, the visibility of the true cost of power, the dynamic nature of building ownership,
education about available energy efficiency technologies, and the absence of tools and guides to
help the practitioner make good choices.197 Other issues concern a lack of industry integration
(the building industry consists of multiple subsectors from architects to construction workers),
diverse building codes, and lack of training on operations and maintenance. Widespread
adoption of energy efficiency measures will require new communication channels, updated and
consistent codes and standards, technology tools for tracking and management, regulatory and
financial incentives, and consistent methodologies across government and private industry
sectors.198

196 National Science and Technology Council, ‚Net-Zero Energy, High-Performance Green Buildings‛,
October 2008,
http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergyHighPerform
anceGreenBuildings.pdf
197 ‚Reducing U.S. Greenhouse Gas Emissions: How Much at What cost?‛, McKinsey and Company,
http://www.mckinsey.com/Client_Service/Sustainability/Latest_thinking/Reducing_US_greenhouse_gas_em
issions.aspx
198 National Science and Technology Council, ‚Net-Zero Energy, High-Performance Green Buildings‛,
http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergyHighPerform
anceGreenBuildings.pdf

2012 Idaho Energy Plan 98
In Idaho, industrial energy customers are the largest energy consumer group, using
approximately 33 percent of the state’s energy.199
In most industrial businesses, energy is a small
proportion of the costs of owning and operating a
factory, typically accounting for less than 10% of
operating costs in most industries, so do not get
much notice.200 Energy efficiency investments are
often overlooked because the anticipated cost
savings from investing in improved energy
efficiency in absolute terms are generally expected
to be low. Payback periods can be perceived as
being too lengthy to fit economic requirements
and there may also be insufficient access to capital for these types of investments. Improvements
in reducing operating costs may be perceived as less important by senior management than
investments that increase revenue.

Interestingly, some of the greatest barriers lie in the areas of information and expertise. Time may
not be devoted to searching for information about energy use in a company because senior
management regards energy efficiency as a routine maintenance issue that is assigned a lower
priority rather than either essential maintenance projects or strategic investments. Most industrial
businesses do not have individuals assigned to the energy portion of their budgets and consider
their energy bill just another cost of doing business, giving it very little attention.

In Idaho, there are significant efforts being made to overcome these barriers. The J.R. Simplot
Company is recognized as a national leader and innovator in energy conservation and
sustainability. Since 2008 they have invested more than $10 million in energy efficiency projects,
which saved (in Idaho alone) more than 7 million kWh of electricity. They are actively working
toward a goal of reducing their energy intensity by 25 percent over the next ten years.201 The
Simplot Company is also leading efforts for industrial energy efficiency throughout Idaho as they
host annual conferences and training seminars as well as leading the Idaho Strategic Energy
Alliance Industrial Energy Forum, which brings Idaho utilities, industrial and commercial
interests, and other stakeholders together to explore industrial energy efficiency opportunities.

The Washington State University Extension Energy Program partners with the Office of Energy
Resources and Idaho businesses to educate, inform, and support energy efficiency projects as
well. They have done a significant amount of work in the industrial energy efficiency sector,
working with stakeholders in Idaho, Montana, Oregon, and Washington to establish long-term
industrial energy efficiency programs, delivering federal Save Energy Now programs,
coordinating and delivering industrial training and education in partnership with the
Department of Energy, industry associations, NEEA, and the Bonneville Power Administration.202

199 EIA: http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/tx/use_tx_ID.html&mstate=Idaho
200 ‚The Multiple Pathways to Industrial Energy Efficiency‛, Lukas C. Brun and Gary Gereffi, February 15,
2011, Duke University, http://www.cggc.duke.edu/pdfs/DukeCGGC_EE-Report_2011-2-15_APPENDIX.pdf
201 J.R. Simplot Sustainability Summary 2010,
http://www.simplot.com/customcf/company/sustainability/index.html
202 http://www.energy.wsu.edu/IndustrialEfficiency.aspx

2012 Idaho Energy Plan 99
3.6.9. Other Potential Energy Technologies
Other technologies being examined include increased turbine efficiencies, hybrid systems and
related technologies (such as rapid-start turbines), advanced nuclear reactor designs (including
small modular reactors), advanced energy-related computer systems, sensors, controls and
instrumentation, materials research, advanced biofuels, new and less expensive solar and
photovoltaics.203 The largest and least costly savings will likely come from energy efficiency
improvements in buildings, appliances, transport, and industry as well as in power generation.

Some of the potential technologies being examined at the present time are summarized in the
table below.

Supply Side Demand Side
■ CCS fossil-fuel power generation ■ Energy efficiency in buildings, lighting, appliances
■ Nuclear power plants

■ Hybrid heat pumps
■ Onshore and offshore wind

■ Solar space and water heating
■ Biomass integrated-gasification combined-

■ Energy efficiency in transport
cycle and co-combustion

■ Electric and plug-in vehicles
■ Photovoltaic systems

■ H2 fuel cell vehicles
■ Concentrating solar power

■ CCS in industry, H2, and fuel transformation
■ Coal: integrated-gasification combined-cycle

■ Industrial motor systems
■ Coal: ultra-supercritical

■ Smart grid and other demand response tools
■ Second-generation biofuels
■ Coal: integrated-gasification combined-cycle
■ Unconventional fossil energy extraction

There are a variety of studies describing trends in energy technology.204
3.7. AREAS WHERE ACTION IS RECOMMENDED
The Committee finds that, on the whole, the current plans of Idaho’s energy companies to meet
the energy needs of Idaho’s citizens and businesses line up reasonably well with the policy
objectives of this Idaho Energy Plan, and consequently does not recommend major changes to the
structure and functioning of Idaho’s energy industry. However, the Committee recommends
action in a few key areas in order to further advance progress toward meeting its five policy
objectives. These areas are described below.

203 http://www.iea.org/techno/etp/ETP_2008_Exec_Sum_English.pdf
204 International Energy Agency: iea.org or www.energy.gov/science-innovation or Massachusetts Institute
of Technology Energy Initiative: web.mit.edu/mitei/research/index.html or Blue Ribbon Commission on
America’s Nuclear Future: www.brc.gov or Clean Edge Market Technology: www.cleanedge.com/reports/
or U.S. Dept. of Energy Report on the First Quadrennial Technology Review, Sept. 2011,
http://energy.gov/sites/prod/files/ReportOnTheFirstQTR.pdf

2012 Idaho Energy Plan 100
3.7.1. Energy Conservation and Direct Use of Natural Gas
There are applications in which it is more energy efficient to use natural gas directly than to
generate electricity from natural gas and then use the electricity in the end-use application. In
many cases the direct use of natural gas can be more economically efficient, and the increased use
of natural gas by residential and commercial customers can reduce overall energy consumption.
According to the American Gas Foundation, the total delivered efficiency is about 90% for
natural gas use from the point of extraction to the end-user. The total deliver efficiency for
natural gas converted to electricity through combined-cycle combustion turbines ranges from
27% to 50% (depending on the efficiency of the turbine). At present, approximately 27% of
natural gas consumption is used for power generation. Used directly at customer premises,
natural gas is two to three times more efficient than electricity produced from natural gas.205 206

A survey by the Northwest Energy Efficiency Alliance found that nearly all new single-family
homes constructed where natural gas was available had gas-fired, forced-air heating systems.207
The Northwest Power Planning Council’s analysis of Northwest utilities indicated that those
with fuel-choice markets are working well. Their study indicates that consumers are selecting
natural gas for space and water heating where it makes economic sense and that increased direct
use of natural gas in residential and commercial applications can increase the productivity of
available energy supplies, reduce overall energy cost, and reduce related CO2 emissions. The use
of natural gas contributes almost 30% less carbon dioxide emissions than oil and almost 45% less
than coal.208
3.7.2. Continued Development of In-State Renewable Resources
Idaho currently imports more than 70 percent209 of its energy needs from out of state. While
developing in-state resources would create jobs and result in economic benefits to Idaho, the state
lacks conventional resources such as coal and oil. However, Idaho does sit in a region possessing
world-class energy resources (fossil, renewable, and uranium), suggesting the importance of
interstate energy collaboration. The resources that can be developed in Idaho in the near future
are natural gas and renewable resources such as wind, geothermal, small hydro, and biomass (for
either electric generation or the production of biofuels such as ethanol or biodiesel). Renewable
resources provide fuel diversity, reducing Idaho’s exposure to the price volatility of other
resources. In-state renewables also typically have attractive environmental attributes because of
substantially reduced air and water emissions, including carbon dioxide. Finally, in-state

205 American Gas Foundation: http://www.gasfoundation.org/ResearchStudies/natural-gas-smart-energy-
future.htm
206 American Gas Foundation Study: ‚Direct Use of Natural Gas--Implications for Power Generation, Energy
Efficiency, and Carbon Emissions‛, http://www.gasfoundation.org/ResearchStudies/directuse.htm
207 Northwest Energy Efficiency Alliance. ‚Single-Family Residential New Construction Characteristics and
Practices.‛ Portland, OR, March 27, 2007.
208 Northwest Power Planning Council Sixth Northwest Conservation and Electric Power Plan, February
2010, http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
209 Energy Information Administration SEDS, State Energy Data System Idaho (139.9 TBTUs production, 509
TBTUs consumption)

2012 Idaho Energy Plan 101
renewable resources contribute to economic growth by creating jobs and tax revenues in Idaho,
frequently in rural areas that are most in need of new economic stimulus.210
However, the Committee recognizes the costs, risks, and concerns associated with the
development of renewable energy resources as well. Siting concerns, land-use impacts, cost
(including secondary costs associated with intermittency), and transmission stability have been
raised as concerns. These issues will need to be considered and addressed.
Cost is the principal barrier to increased investment in local renewable resources. Renewable
resources can be more expensive than conventional resources, and the Committee wishes to
avoid burdening Idahoans’ energy bills with needless investment in high-cost resources. While
the Committee endorses renewable resources in general because of the many benefits they
provide, it declines to adopt specific targets or standards out of concern that setting arbitrary
targets could conflict with the goals of maintaining Idaho’s low-cost energy supply and ensuring
access to affordable energy for all Idahoans. The Committee is also concerned that adopting firm
targets may not provide sufficient flexibility for Idaho energy providers given the rapid
development of new energy technologies. At the same time, the Committee recognizes that new
technology has reduced the cost of renewable resources in recent years. This has made some
renewable resources more cost-competitive today, particularly when considering their human
health and environmental benefits and the fact that renewables are not subject to fuel price
volatility. This Energy Plan contains a number of recommendations and policy guidance that
may further reduce the cost of renewable resources in Idaho and help make them more
competitive with conventional resources.
The Committee recognizes that because of cost and stability concerns, utilities integrating wind
and other variable generation resources into their systems must continue to build traditional
resources, such as gas-fired combustion turbines, to meet their on-peak capacity requirements
because many renewable resources have very limited capacity value. Renewable generation does
reduce overall utility fuel costs, but the total cost to customers of building renewable generation,
which must include the costs of traditional capacity resources to meet actual loads when
renewable energy is not available, is greater than if Idaho simply chose to build non-renewable
generators.
Targeted policies have been shown to stimulate development of renewable energy in the state.
For example, developers in 2009 and 2010 responded to high PURPA rates implemented by the
IPUC and signed or offered to sign utility contracts that in total added up to more than a 10-fold
increase in in-state wind generation. Since that time the cost of natural gas has declined and the
IPUC has adjusted rates accordingly, with the natural consequence of halting the construction
boom. The state sales tax exemption, which has sunsetted, is another example of an incentive that
can help bring additional development to the state. These incentives should be carefully
considered and debated as energy technologies and markets evolve.
Idaho citizens will need to decide on the appropriate contribution of renewable energy in our
energy portfolio. It is recognized that every Idahoan wants affordable and stable energy prices
while having the energy they consume have minimal environmental impact.

210 See ‚Energy Careers in Idaho‛, Idaho Department of Labor, Spring 2009:
http://labor.idaho.gov/publications/energy_report.pdf and
http://www2.labor.idaho.gov/futureready/docs/Infographic_Green_Economy_8x11.pdf

2012 Idaho Energy Plan 102
3.7.3. Environmental Impacts and Carbon Regulation211
Idaho’s investor owned utilities are keeping a close watch on federal environmental regulations,
especially related to potential carbon legislation, and they are factoring in the potential impact in
their Integrated Resource Plans. Avista’s 2011 Integrated Resource Plan includes developing a
weighted cost using four different cases for greenhouse gas emissions including regional cap and
trade, national cap and trade, national carbon tax and no greenhouse gas policies.212 Idaho
Power’s 2011 IRP attempts to quantify the cost and longer term impacts of carbon regulations by
including a carbon adder that is applied to all resources that emit CO2.213 PacifiCorp’s 2011 IRP
also includes several scenarios related to CO2 stating, ‚The Company does, however, anticipate
that additional state and federal environmental laws and regulations will necessitate further
investment in pollution control and environmental compliance projects, as well as further
evaluation of unit specific operational/dispatch impacts, especially with respect to pending
greenhouse gas regulations and hazardous air pollutants maximum achievable control
technology requirements.‛214
Carbon dioxide (CO2) has increased from approximately 280 parts per million (ppm) to over 390
ppm over the past 150 years. This rise in CO2 is increasing the acidity of the oceans and is likely a
contributor to both global and regional changes in temperature and precipitation. These changes
in CO2 levels pose a real and present threat to human security and prosperity, and, in response,
the federal government has begun to take action. It is likely that global and national efforts to
control CO2 will impact Idaho’s economy; both through energy pricing and our overall economic
competitiveness. Idaho is among the nation’s largest per capita energy importing states and
many of our energy imports come from coal-fired power plants that are most susceptible to
carbon-based price increases. If pending regulations increase power production costs, utility
regulators in states hosting the power production facilities may act to protect the consumers in
their region. This could further increase the price of power sold on the open market. When
current long-term power contracts expire, these higher prices could expose Idaho electricity
consumers to higher rates than their neighboring states pay. Additionally, Idaho’s rural,
dispersed economy depends heavily upon personal vehicles and is sensitive to increases in fuel

211 Carbon section sources: 2007 Idaho Energy Plan
http://www.energy.idaho.gov/informationresources/d/energy_plan_2007.pdf; Carbon Issues Task Force
Report at http://www.energy.idaho.gov/energyalliance/taskforce.htm; United States Global Change
Research Program National Climate Assessment at http://www.globalchange.gov/; Climate Change at the
National Academies at http://dels-old.nas.edu/climatechange/; U.S. Climate Change Technology Program at
http://www.climatetechnology.gov/; United States Environmental Protection Agency, Climate Change, at
http://www.epa.gov/climatechange/index.html; United States Department of Agriculture, Office of the Chief
Economist, Climate Change, at http://www.usda.gov/oce/climate_change/; United States Department of
Defense, Quadrennial Defense Review Report, February 2010, at
http://www.defense.gov/QDR/QDR%20as%20of%2026JAN10%200700.pdf; International Energy Agency at
http://www.iea.org/; Intergovernmental Panel on Climate Change at http://www.ipcc.ch/; Western
Governors’ Association at ,http://www.westgov.org
212 Avista 2011 Integrated Resource Plan, page 4-4:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IRP.pdf
213 Idaho Power Company 2011 Integrated Resource Plan, page 6:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
214 PacifiCorp 2011 Integrated Resource Plan, page 181:
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource_Plan/2011IRP
/2011IRP-MainDocFinal_Vol1-FINAL.pdf

2012 Idaho Energy Plan 103
prices.

Large energy facilities can have significant and complex environmental impacts. Generating
plants fired by fossil fuels consume large volumes of water and emit carbon dioxide and mercury
as well as regulated pollutants such as carbon monoxide, sulfur dioxide, particulates, and oxides
of nitrogen. Nuclear power plants create radioactive waste that must be safely stored for
thousands of years. Even renewable resources can have significant environmental impacts: large
hydroelectric facilities can alter stream flows and degrade habitat; wind energy farms can have
visual and noise impacts and can cause avian mortality; and geothermal energy projects can emit
sulfur dioxide gas and have been located in culturally or environmentally sensitive areas. As
such, the Committee establishes as one of the Energy Plan Objectives the protection of Idaho’s
public health, safety, and natural environment.
The Committee is particularly concerned about the possible impact of federal regulation of
carbon dioxide and other greenhouse gas emissions. The Committee did not debate the science
of global climate change. The Committee found it sufficient to note that there is enough
momentum behind efforts to regulate greenhouse gases at the federal level that it is prudent for
Idaho and its energy suppliers to continue to incorporate that likelihood into their energy
planning. The Committee encourages these utilities and all Idaho energy producers, deliverers,
and consumers to continue to improve their preparedness by pursuing less carbon-intensive
resources as part of a diversified resource portfolio.
While federal regulations on carbon dioxide and greenhouse gases have potential for significant
impact on energy costs in Idaho, such regulations also may provide potential opportunities.
Idaho has an abundance of renewable resources and energy efficiency opportunities, which
would reduce Idaho's exposure to CO2 regulatory risk while fostering economic growth. Global
growth in nuclear energy, in part driven by CO2 concerns, would also provide opportunities for
Idaho’s workforce. Clean energy technology development including equipment design, software
and control instrumentation, and manufacturing to serve the needs of state, regional, and global
markets would add to economic development.
3.7.4. Energy Facility Siting
Energy facility siting is the responsibility of local officials, primarily at the county level. Energy
facility projects, which can refer to either energy generating projects (such as power plants and
wind farms) or electricity transmission and distribution lines, typically require approval through
the local land use planning process, which generally requires obtaining a conditional use permit.
A few counties and cities have specific requirements for energy facilities, but most have more
general requirements that apply to the siting of all types of industrial development.
In developing the 2007 Energy Plan the Legislature considered, but ultimately did not
recommend, moving energy facility siting decisions from the local to the state level. However,
the Legislature recognized Idaho counties were receiving a growing number of requests to site
energy facilities. They also acknowledged that county governments may not have the resources
available to conduct a thorough examination of all pertinent aspects of an energy facility siting
application. The 2007 Energy Plan therefore recommended that state agency resources be made
available to local governments in the form of an Energy Facility Site Advisory Team, composed
of key employees from a number of state agencies, to provide information and advice upon

2012 Idaho Energy Plan 104
request of local officials. In 2007, this recommendation was memorialized in the ‚Energy Facility
Site Advisory Act‛ (the Act). Sections 67-2351 through 67-2355, Idaho Code.215
Under the Act, technical assistance is available to a city or county from any department of state
government to evaluate the environmental attributes and impacts of a proposed energy facility
that will be used for the generation of more than 50 MW of electricity. The Act does not cover
proposals to install transmission or distribution lines. For covered projects, the Act encourages
city and county officials to contact any state agency for assistance. If the assistance of more than
one department is requested, then coordination among the offices is required. The Office of
Energy Resources (OER) has informally acted in this coordinating role. Upon the request of a
local government, OER will secure the assistance of the appropriate state agencies, based upon
the specific nature of the project and any specific requests of the local government. In accordance
with the Act, departments shall provide written reports to the requesting city or county within 60
days of receipt of a request. The assistance of state agencies is not intended to replace the
judgment of the local officials, but to provide information and expertise to local officials
evaluating the potential impacts of proposed energy projects on their communities. The
Committee notes that while the Office of Energy Resources is prepared to act in a coordinating
role, to date, no counties have formally requested the support of OER. Nonetheless, adequate
funding of OER will ensure that OER can provide assistance and coordination for local
government, among other activities, when the need arises.
Projects proposed for development on federal land must secure land rights, typically referred to
as ‚rights-of-way,‛ and undergo review in accordance with the National Environmental Policy
Act (‚NEPA‛)216 and other federal statutes. Local government and state agency reviews are also
conducted. The Bureau of Land Management (BLM) typically serves as the lead federal agency
and coordinates the review by federal agencies. In addition, OER serves as the coordinating
agency for the comments of state agencies on energy projects seeking access to federal lands.
Over the past five years, proposals to construct energy facilities have generated a great deal of
public interest and debate. The Committee believes this level of public interest in energy facility
siting can only be expected to grow as existing and new energy facility proposals are advanced to
meet future energy demands in Idaho. Therefore, the Committee reiterates the recommendation
from the 2007 Plan that local jurisdictions make a reasonable effort to hear testimony about the
impact of proposed energy facilities from citizens and businesses in neighboring jurisdictions.
3.7.5. Regional Energy Engagement and Partnership
The committee believes that: given that the majority of energy consumed in Idaho is derived
from outside of Idaho, principally in energy producing states near Idaho; that energy
transmission is a common and critical interest of Idaho and neighboring states; that Idaho and
neighboring states share significant energy and economic development-coupled opportunities
and concerns; and that Idaho and neighboring states have common risks and concerns regarding
federal energy policy directions. The Committee also believes that the development of an inter-
state dialogue and/or planning council on energy issues and opportunities may be beneficial and
could positively impact federal policy and regional economic development. It is the desire of the

215 http://www.legislature.idaho.gov/legislation/2007/H0154.html
216 http://www.epa.gov/region1/nepa/

2012 Idaho Energy Plan 105
Committee to encourage the appropriate state agencies to explore this potential with
representatives throughout the region.
4. Energy and Economic Development in Idaho
4.1. UPDATES FROM THE 2007 PLAN
Much has changed since the 2007 Plan was adopted in both the energy industry and in the
overall economy. Promoting a comprehensive energy strategy encouraging cost-effective energy
efficiency, and at the same time promoting cost-effective and reliable production and delivery of
energy, is relevant yesterday, today, and tomorrow. A convincing consensus of thoughtful
Idahoans agrees that adequate energy supplies are essential to the long-term health of the State
economy, as energy is fundamental to all that we do.
Fortunately for the state, the energy sector, including electricity, natural gas, and transportation
fuels can act now and in the future as a positive influence on the demanding economic issues of
our times.
4.2. IDAHO’S ECONOMIC PRIORITIES
Project 60217 is a comprehensive initiative to grow Idaho's Gross Domestic Product. Designed in
three tiers to strengthen both rural and urban communities, the plan will create quality jobs for
Idahoans by fostering systemic growth, recruiting new companies to Idaho, and selling Idaho's
trade and investment opportunities to the world.
A $1.25 million federal grant financed the Idaho Department of Labor’s 2010 study on green
professions in Idaho. The survey found occupations in the areas of pollution and waste control,
renewable and efficient energy, sustainable agriculture, and natural resource management exist
in 95 percent of all industry sectors in Idaho, and the state’s growing expertise in these areas
makes them a natural direction for Idaho workers who are looking to improve their skills. To
foster these skill sets, the Department created a website with information on Idaho occupations
and training programs in green energy areas.218 219
The first step to improving Idaho's economy is to make the Gem State's business climate even
more attractive by taking care of our existing workers, cultivating a highly skilled workforce,
establishing a method to get research from the Idaho National Laboratory and our universities to
the consumer market, and improving our statewide infrastructure.
Keeping our existing businesses in Idaho is also a top priority for systemic growth. Business
retention and expansion can assist Idaho companies in maintaining a healthy bottom line. Access
to affordable energy is a key ingredient in allowing Idaho businesses to grow while enhancing
the energy efficiency of Idaho’s businesses, particularly the most energy-intensive of those, helps
these businesses be more competitive.

217 http://project60.idaho.gov/
218 Idaho Department of Labor Press Release, October 12, 2011,
http://labor.idaho.gov/news/NewsReleases/tabid/1953/ctl/PressRelease/mid/2527/itemid/2360/Default.aspx
219 Idaho Green Jobs Website: http://www2.labor.idaho.gov/futureready/ and
http://www2.labor.idaho.gov/futureready/docs/Infographic_Green_Economy_8x11.pdf

2012 Idaho Energy Plan 106
Maintaining a skilled, highly trained workforce is also essential for growth. The current economic
climate has created real financial hardship for thousands of Idaho citizens. It has also created a
significant pool of highly skilled workers who can immediately provide bottom-line value to any
new or expanding business. Our first line of defense is to support those workers that have been
impacted by layoffs through cross department cooperation with the Department of Labor, which
provides access to unemployment insurance, job searches, opportunities for training, and
retraining or vocational education. Highly skilled workers, such as engineers, are in demand
from many of our Idaho companies. Existing business is increasingly high tech and Idaho has a
shortage of qualified, skilled labor to fill immediate needs. The recruitment effort will be a
public/private partnership. In 2011, the Idaho Legislature established the Workforce
Development Training Fund, which helps eligible Idaho companies with up to $2,000 per
employee for job skill training, both for new employees of companies expanding in Idaho and for
skill upgrade training of current workers who are at risk of being permanently laid off.220 This
fund, section 72-1347B, Idaho Code,221 creates a special trust fund to aid Idaho workers and
encourage ongoing employment in the state.
In 2007, the Kauffman Foundation ranked Idaho #6 in "innovation capacity," but only 38th in
venture capital investment. Hence, while Idahoans are inventing and advancing innovative
ideas, they are not easily taking those innovations to market. Technology transfer is the process
by which this intellectual property developed in a research institution is moved out of that
facility, turned into a product, marketed, and monetized in the global marketplace. The transfer
of these innovative ideas is a complex endeavor that depends on the cooperation of many
individuals and institutions. The Center for Advanced Energy Studies could be instrumental in
aiding Idahoans in technology commercialization. The University of Idaho’s Office of Technology
Transfer manages the University's intellectual property developed by faculty, staff, and students
as well as assisting Idaho businesses. They establish commercial partnerships with industry to
promote the development of products and new ideas.222
The second step, domestic recruitment, has always been a priority for Idaho. New programs have
been added under the Project 60 campaign to enhance those efforts. Idaho has implemented a
Top-2-Top Business Attraction Strategy223, recruiting a network of Idaho executives to engage
their peers nationwide and encouraging them to move or expand their companies into Idaho.
Idaho will continue to target businesses that will by synergistic with our existing industry
clusters, including alternative energy, recreational technology, manufacturing, aeronautics, and
technology.
Third and last, Foreign Direct Investment (FDI) plays an extraordinary and growing role in
global business. It can provide a firm with new markets and marketing channels, less expensive
production facilities, access to new technology, products, skills, and financing. For Idaho, FDI can
provide a source of new technologies, capital, processes, products, organizational technologies,
and management skills, and as such can provide a strong impetus to economic development.
The U.S. Citizenship and Immigration Service administers an immigrant investor visa program
called EB-5. The program grants international investors permanent U.S. residency in exchange for

220 http://labor.idaho.gov/dnn/idl/Businesses/CustomizedTraining/tabid/647/Default.aspx
221 http://law.justia.com/codes/idaho/2011/title72/chapter13/72-1347b/
222 http://www.uidaho.edu/ott
223 http://www.project60.idaho.gov/recruit.html

2012 Idaho Energy Plan 107
helping create U.S. jobs. The program requires a $1 million investment in urban areas or a
$500,000 investment in rural or targeted employment areas and the creation of 10 permanent jobs.
The investment must also remain ‚at-risk‛ without repayment for a period of two full years. The
Idaho Department of Commerce is working to combine the EB-5 Regional Center with the state's
technology-transfer protocol, providing Idaho with additional skilled workers and potential new
businesses.224
Opportunities afforded by changing global energy markets, deployment of new energy
production technologies, and energy supply and cost all impact the ability of Idaho businesses to
expand. An important element in Idaho’s energy strategy is developing an energy-centric
approach to economic development in order to capitalize on market opportunities while
enhancing energy security for Idahoans.
4.3. ENERGY AND ECONOMIC DEVELOPMENT
One area where evolutionary change continues is energy and economic development. Idaho has
always had plentiful, low-cost electricity and natural gas as an attractor to business. Motor fuel
prices have remained competitive because of a location advantage and excellent highway, rail
and pipeline transportation networks. The Idaho economy is largely based on low-cost energy;
for example, extensive agricultural pumping, energy-intensive industry, and relatively high-use
in residences. Accordingly, there is an energy policy conundrum in the state – continued
development of energy-intensive industries steadily dilutes the existing energy cost
competiveness to both new and existing commercial operations, thus creating negative impacts
on current economic mainstays such as Micron and Simplot.
Energy related development, design, and manufacturing have created many jobs over the years,
and the prospects for continuation remain bright. This creates value that can be captured by a
state seeking to expand its energy and efficiency technology capability. The key is to think
beyond Idaho and seek markets for products beyond just building new generation. Energy
related research, development, and demonstration has also been a major economic driver in the
state, with the INL being the state’s second largest employer and a major contributor to the tax
base and driver for private sector employment.225 With the addition of the CAES Energy
Efficiency Research Institute, other INL and university-based capabilities, and outstanding
engineering and light manufacturing demographics, the region can become a national and
international leader in efficiency products and services. There is a mix of products and services
on both the supply and demand-side of the energy equation where Idaho can be a competitive
player. New power production is one element, but requires corresponding transmission capacity
to get energy in and out the region. Other supply-side products which are more easily exported
include renewable generation and integration components, devices, and software.
In the face of intense competition for these new jobs and new industries, many states have upped
the ante significantly with public money subsidies, grants, and other questionable means.
Although Idaho has a number of special tax benefits for the energy industry, today these are

224 http://www.project60.idaho.gov/encourage.html
225 ‚Boise State Research Details Positive Economic Impacts from INL Operations‛, December 9, 2010, Boise
State University Update, http://news.boisestate.edu/update/2010/12/09/boise-state-research-details-positive-
economic-impacts-from-idaho-national-laboratory-operations/

2012 Idaho Energy Plan 108
structured fairly and reasonably to insure the net benefits to the citizens remains positive. Some
states recently have significantly reduced tax benefits and grants because they were causing
dramatic increases in the tax burden of others. Idaho has been prudent through excellent
leadership at the legislative level and the Governor’s office.
Serving global and local energy markets through manufacturing and services has a large
potential to create jobs and add other economic value to the state. Of course, there will be intense
competition for these investments in facilities. But Idaho has many advantages due to great
cooperation between business, government, universities and especially the Idaho National
Laboratory (INL) and its research and development emphasis. Only a few states can match the
caliber of the research being conducted within the state, especially with the emphasis on
technology transfer.
Economic development can take many forms and paths, but when one looks at the underlying
drivers of economic activity it becomes very straightforward. If you are importing more money
(income or investments) into the economy than you are exporting then you experience economic
growth. This can come from something as simple as selling a potato to another state or reducing
the purchase of a gallon of motor fuel from another state by increasing the fuel efficiency of a
vehicle or by carpooling. In the case of the potato, the work, the investment, and the return occur
in Idaho, while the payment comes from outside the state. Foreign trade does not only come from
other countries, but it also comes to Idaho from other states. Obviously there are no automobile
manufacturers in Idaho today. When more fuel efficient vehicles that meet the needs of Idahoan’s
are available in the market, the indirect impact of our residents purchasing them is to reduce
exports of money to the states with refineries or oil production. Every purchase has a cost and a
benefit. Trading potatoes for gasoline makes great economic sense. Trading potatoes produced
with energy efficient planting, irrigation, harvest, storage, and delivery equipment keeps more
money in Idaho because less gets spent elsewhere. Living standards have an opportunity to
grow, benefiting citizens as well as state and local government. A holistic approach taking
everything, including education, into account can make the existing economy perform at a much
higher level. Economic development and state energy policy should be built around two
fundamentals, optimizing the low-cost legacy energy base and leveraging inherent Idaho
advantages to research, develop, and commercialize valuable energy and efficiency products and
services in a global market.
During the last five years, the Board of the Idaho Strategic Alliance has rigorously applied the
five Energy Plan Objectives outlined in the 2007 Idaho Energy Plan. The reviews by the Board of
task force reports considered each element of these objectives including, but not limited to,
‚promote sustainable economic growth, job creation and rural economic development.‛ There
was also discourse related to educating and training Idahoans for the growing existing
technologies and emerging technologies with new skill sets.
The Board recognized early on the limited financial opportunities available due to the economic
slowdown and volatility of the past several years. Recommendations generally suggest existing
program shifts, greater cooperation between agencies already involved in energy development,
and the expectation that once the economy was less stressed, incentives for targeted energy
investment and programs would be more achievable. As it turns out, the economy has remained
stressed and budgets continue to tighten. Competition from other states has been mixed as some
have reduced incentives while others continue to offer options not fundable in Idaho at this time.

2012 Idaho Energy Plan 109
Idaho remains an excellent place to do business because of favorable location advantages,
relatively low energy costs, and an excellent transportation network. Although Idaho imports
much of its motor fuels and natural gas, there are promising changes to both fuel economy and
fuel making or mining, although these efforts remain in their infancy. The state has existing tax
programs available from various departments that make development challenging, while at the
same time hold the state’s residents harmless. The Legislature recognizes developers are always
going to ask for special treatment. The Legislature remains disciplined as they review various
proposals and remain frugal with funding due to budgetary constraints.
As the economy improves over the next five years, there will be no shortage of requests for a
share of increasing revenues flowing from existing state taxes. This Energy Plan will guide the
Legislature to make prudent decisions as we move forward. It is important to note that state
energy policy should thoughtfully and purposefully align the additional allocation of low-cost
energy with public benefit value (i.e. the number and quality of new jobs created and the
expanded tax base). Without commensurate public benefit, the state is in a net ‚worse off‛
position by adding the new load while existing industry and population get to pay the difference.
5. Energy Outreach and Education
5.1. OVERVIEW
The phrase ‚energy education‛ can have two very different meanings. On one hand, it can refer
to providing energy consumers, policymakers, and others unbiased, factual and complete
information with which to make informed energy choices. On the other hand, it can refer to
educating the scientists, engineers, technicians, and the other highly skilled workers who will
develop, construct, operate, and maintain our energy supply systems, now and in the future.

The Committee believes both of these aspects are important to securing Idaho’s energy future.
5.2. INFORMING THE PUBLIC AND POLICYMAKERS
Access to affordable, reliable, and secure forms of energy is an essential component of a well-
functioning economy and has offered the state of Idaho an important competitive advantage over
neighboring states. As Idaho plans for its energy future, its citizens, business leaders, and elected
officials must have access to complete and unbiased information about our energy choices.
Several noteworthy efforts are underway across the state to better inform Idahoans about energy.

The Idaho Strategic Energy Alliance (ISEA) is a state government initiative intended to provide
state leaders and the public with balanced information about energy in Idaho. Governor Otter
established the ISEA to help develop effective and long-lasting responses to energy challenges.
The primary purpose of the ISEA Board of Directors is to provide options and support to the
Governor’s Council regarding energy activities for the State of Idaho.

On the Idaho Office of Energy Resources website the ISEA presents information about energy
transmission, renewable energy, energy efficiency, and access to information resources. The
Alliance also publishes reports on the website that take an unbiased, scientific look at certain

2012 Idaho Energy Plan 110
subject areas. The reports are created by volunteer task forces in areas such as wind, biofuels,
geothermal and hydropower, and energy conservation and efficiency.226

The ISEA also developed an Idaho Energy Primer in early 2011. The primer includes facts and
information about energy in the state of Idaho and is a resource designed to help Idaho citizens
make informed decisions about Idaho’s energy future. The booklet provides information about
energy resources, production, distribution, and use in the state.227

Idaho’s energy providers are also engaged in efforts to provide useful information to Idaho’s
energy consumers. An excellent example is the work of Idaho Falls Power – a municipal utility
with electricity operations in the city of Idaho Falls – to establish an Energy Center for customers
and the public that informs them how energy electricity is generated, where it comes from, and
how to use it more efficiently. The Energy Center was created by using over $300,000 of Energy
Efficiency Conservation Block Grant funds from the U.S. Department of Energy. The Energy
Center consists of several displays and interactive exhibits explaining fossil fuel power stations,
hydroelectricity, and renewable electricity sources. There is also a display that highlights Smart
Grid technology and the role Idaho Falls Power will play in this new technology.228

Idaho Power’s ‚Our Energy Future‛ campaign represents another effort to provide energy
information to Idaho’s energy consumers. Launched in 2010, the campaign to better
communicate with the public about the future of energy and how to use it efficiently includes a
website page, video and PowerPoint slides, a pamphlet, and employee and customer newsletter
articles.

Idaho Power also has offered the Students for Energy Efficiency program to Idaho schools to
educate students and their families about energy used in schools, their homes, and other
buildings. The program, implemented with the Idaho Office of Energy Resources and local
school district administrators, was a hands-on learning lab that allowed students to gain
knowledge of energy and apply it to recommend energy efficiency improvements. Since 2009,
over 125 schools and more than 7,500 students have participated in the program.229

Avista has begun a new program entitled ‚Powering Our Energy Future,‛230 that focuses on
engaging and informing the public. In the fall of 2010, Avista sponsored a forum for several
hundred business, academic, and community leaders in Spokane, Washington. The event is
being followed up by smaller, tailored outreach events that are responsive to specific topics
raised by participants during the large event, and are focused on stakeholders who have shared
their interest with Avista. In addition to the outreach events in development, Avista is creating
an interactive energy planning model that is similar to the one used in development of resource
scenarios in the IRP process. Participants will be able to interactively change the energy source
inputs and see the effects on the amount of energy generation needed, the capacity required, and
the resulting costs.

226 http://www.energy.idaho.gov/energyalliance/
227 http://www.energy.idaho.gov/energyalliance/d/isea_primer_new.pdf
228 http://www.idahofallschamber.com/wwwroot/userfiles/files/pr_if_power_celebrates_public_power_week.pdf
229 http://www.idahopower.com/AboutUs/CompanyInformation/ourFuture/default.cfm
230 http://www.avistautilities.com/community/poweringourfuture/pages/default.aspx

2012 Idaho Energy Plan 111
Avista has also developed a program focused on educating children about energy. The program
features a mascot called ‚Wattson the Energy Watchdog,‛ who is involved in events, fairs, and
special outreach events. Avista engages schools in organizing presentations to students. With the
cooperation of Avista and schools, the mascot teaches students about energy conservation and
safety.231
The effort to educate Idaho’s energy consumers extends to our universities. For example, within
Boise State University, elective courses are offered in energy efficiency and renewable energy that
are designed for the non-scientist. By providing students outside the science and engineering
fields with a solid grounding in energy fundamentals, Boise State is helping to educate an
energy-savvy generation of energy consumers, policymakers, teachers and business leaders.
The Department of Biological and Agricultural Engineering at the University of Idaho houses the
Biodiesel Fuel Education Program. The goal of the program is to provide unbiased, science-
based information about biodiesel, and to assist in the development of educational tools for a
national biodiesel outreach program. The program develops and distributes educational
materials that support advances in biodiesel infrastructure, technology transfer, fuel quality, fuel
safety, and increasing feedstock production.
Idaho State University offers bachelor’s and master’s degree programs in Nuclear Science and
Engineering that prepare students for advanced placement in the nuclear industry in commercial,
research, or development areas. The University’s goal is to prepare graduates to excel in a wide
range of careers in nuclear engineering associated with nuclear reactors, the nuclear fuel cycle,
and other applications of nuclear technology.
All three of the Idaho public universities, INL and industry are partners in Center for Advanced
Energy Studies (CAES).232 CAES is a public/private partnership that involves students in
performing innovative, cost-effective, credible energy research leading to sustainable technology-
based economic development in areas such as: energy efficiency, energy policy, nuclear science
and engineering, and bioenergy.

INL, the state’s second largest employer, is the United States lead national laboratory for nuclear
energy and a leading contributor to a variety of other clean energy technologies, is a tremendous
resource for energy education and outreach. The INL has contributed to broad education and
outreach campaigns regarding energy.

CAES holds multiple workshops throughout the year that facilitate discussion among researchers
and the public on energy topics. Through this medium, CAES informs the public and brings
together experts in energy fields.
The CAES Energy Policy Institute (EPI)233 provides robust and timely research that meets the
challenges of an increasingly carbon-constrained economy, which include the need for energy
and environmental security, as well as sustainable economic development. EPI research focuses
on both innovation and the more routine but critical mission of improving government
performance in the implementation of energy policy. EPI seeks to inform and educate

231 http://www.avistakids.com/
232 https://inlportal.inl.gov/portal/server.pt/community/caes_home/281
233 http://epi.boisestate.edu/

2012 Idaho Energy Plan 112
policymakers and other stakeholders to aid them in making decisions about energy. EPI does
this through research publications with more than 15 to date, the development of decision
support tools, policy roundtables, workshops, and the Western Energy Policy Research
Conference. EPI has nationally and regionally recognized expertise in energy infrastructure
siting and decision support tools, electricity transmission, nuclear energy, carbon capture and
sequestration, renewables, and analysis of public attitudes and participation.
Important research questions that EPI seeks to comprehensively address are, "How do we make
the most appropriate choices in regard to energy usage and meeting demand, and how do we
better understand the important issues in regard to siting energy infrastructure in the most
appropriate places?" These questions have national, state, and local significance and are of
particular importance to the arid West.
The Energy Policy Institute is currently creating a publication that will analyze the ‚State of the
State‛ regarding energy in Idaho. The document will include in-depth research, facts, and
figures informed by the EPI’s research using U.S. Energy Information Administration
quantitative data, which will be replicable for potential future reports. It will serve as a tool for
the public and state leaders to increase understanding of how energy is generated, distributed,
and consumed in Idaho.
5.3. EDUCATING AN ENERGY WORKFORCE
Making the right energy technology choices is important, but even the best plan will fail without
the skilled workforce necessary to implement the plan. Idaho’s educational and research
institutions and Idaho companies have embarked on a series of initiatives that are helping to train
our next generation of energy workers.

Several Idaho high schools participate in the Wind for Schools program funded by the U.S.
Department of Energy. With the help of this program and with assistance from the Idaho
National Laboratory, in 2008 Skyline High School in Idaho Falls formed the Energy and Power
Systems for Tomorrow course. Through the course students learn about the physical concepts of
work, force, energy, and power, and study many forms of traditional and alternative sources of
electrical energy.

Idaho’s three public research universities are all heavily engaged in educating tomorrow’s energy
workforce. The College of Technology at Idaho State University has established the Energy
Systems Technology and Education Center (ESTEC) in Pocatello. ESTEC integrates the education
and training required for graduates to maintain existing plants as well as to install and test
components in new plants in the areas of electrical engineering technology, instrumentation and
control technology, mechanical engineering technology, wind engineering technology,
instrumentation and automation technology, nuclear operations technology and renewable
energy technology.
Understanding the performance of materials in existing energy systems and developing
advanced materials for new energy applications are key factors in meeting future energy needs.
The Materials Science and Engineering program at Boise State University is investigating a broad
range of materials issues in areas such as nuclear fuels and materials, biomaterials, glasses,
semiconductors, electronic memories, computational modeling, and magnetic materials.

2012 Idaho Energy Plan 113
The National Institute for Advanced Transportation Technology at the University of Idaho is a
center of excellence for transportation research, education, and technology transfer. It is
committed to preserving and protecting the natural and pristine environments of the Pacific
Northwest and its small cities and towns. The Institute contributes to the sustainability of this
environment through the development of clean vehicles, alternative fuels, efficient traffic control
systems, safe transportation systems, sound infrastructure, and the policies that support these
systems.

CAES has launched an initiative to build the Center for Energy Efficiency Research Institute
(CEERI). The Institute promotes efficient and effective use of energy resources through research,
education and outreach;. is developing energy efficiency concepts through research in applied
technology and consumer behavior; is providing specialized education for energy efficiency
technicians, engineers and architects; is evaluating existing energy-saving technologies; and is
creating infrastructure for the accelerated transfer of ideas from the institute to the marketplace.
Drawing on the strengths of many partners including Boise State University, Idaho State
University, the University of Idaho, Idaho Power, the Boise Metro Chamber of Commerce, J.R.
Simplot Company, Micron Technology, the National Resources Defense Council, the Idaho Office
of Energy Resources, and the Idaho National Laboratory, the Institute is based at Boise State
University.234

CEERI plans to develop a state-wide energy efficiency curriculum goals include developing
energy efficiency concepts through research in applied technology and consumer behavior;
providing specialized education for energy efficiency technicians, engineers and architects;
evaluating existing energy-saving technologies; and creating infrastructure for the accelerated
transfer of ideas from the institute to the marketplace. This Institute can be a valuable asset in a
state like Idaho with relatively high energy intensity.

The CAES Institute of Nuclear Science and Engineering (INSE) was established in 2003. Under
the INSE’s administrative umbrella, the three public universities jointly focus on nuclear science
and engineering education at the combined Idaho Falls Campus. CAES researchers are helping
to solve some of the most critical technical issues related to nuclear energy, including "closing"
the fuel cycle, developing new materials that can be used in the next generation of reactors and
extending the life of the nation's current fleet of light water reactors.

Educating tomorrow’s energy workforce is also a major focus of Idaho’s community colleges. At
the College of Southern Idaho (CSI), instructors have been training the next-generation energy
workforce with education and training in renewable energy since 1981. CSI’s Renewable Energy
Training Center provides a comprehensive curriculum designed to give students the skill sets
necessary to work in any of the renewable energy fields. In 2009, CSI created a Wind Energy
Technician program that teaches about 70 students a year about troubleshooting, maintaining,
and operating industrial-size wind turbines. The program prepares wind energy technicians to
work with either small companies providing a specialist niche product, or very large companies,
such as power giants on an energy team.

234 http://news.boisestate.edu/update/2010/11/04/new-energy-efficiency-research-institute-to-be-housed-at-
boise-state/

2012 Idaho Energy Plan 114
CSI received a $4.4 million federal grant in early 2011 from the U.S. Economic Development
Administration to help build a nearly $7 million technology center in Twin Falls. The Applied
Technology and Innovation Center will provide a consolidated home for CSI’s renewable energy
programs. The 29,600-square-foot, energy efficient center will provide training to students in a
wide array of renewable energy generation techniques and green construction.

Eastern Idaho Technical College (EITC) is also training the labor force that will build, operate,
and maintain the energy systems of the future. EITC launched their Energy Systems Technology
program in 2010. The College provides the first year of this two year program at the Idaho Falls
EITC campus, and the students are qualified to enter the second year of the ESTEC program at
ISU. The program equips students to become energy systems maintenance technicians with
mechanical, electrical, and instrumentation and control skills.

Another educational option in Idaho is the Northwest Lineman College located in Meridian,
which addresses significant industry need in terms of preparing lineman apprentices. They
educate students in construction, maintenance, and operation of the electrical grid, provide
lineman certification for individuals already working in the trade, and develop customized
training services to power and construction companies worldwide. Since it began in 1993, this
institution has trained over 2,000 energy industry professionals.235

6. Recommended Policies and Actions
6.1. OVERVIEW
This chapter presents the 2012 Idaho Energy Plan recommendations. The Committee’s Objectives
for this Energy Plan are to:
1. Ensure a secure, reliable, and stable energy system for the citizens and businesses of
Idaho;
2. Maintain Idaho’s low-cost energy supply and ensure access to affordable energy for all
Idahoans;
3. Protect Idaho’s public health, safety, and natural environment and conserve Idaho’s
natural resources;
4. Promote sustainable economic growth, job creation, and rural economic development;
and
5. Provide the means for Idaho’s energy Policies and Actions to adapt to changing
circumstances.
Specific recommendations are classified either as ‚Policies,‛ establishing the direction that Idaho
should pursue in a given topic area in order for Idaho’s energy systems to meet the Objectives, or
‚Actions,‛ specific items that help advance each Policy. This Energy Plan contains 18 Policies
and 44 Actions that were approved by the Committee on a consensus basis.

235 http://www.lineman.edu/

2012 Idaho Energy Plan 115
6.2. ELECTRICITY
RESOURCES
Policies
1. The State of Idaho should enable robust development of a broad range of cost-effective
energy efficiency and power generation resources within environmentally sound
parameters.
2. Align legislative policies, regulatory policies, and state agency activity to consistently
reinforce state objectives regarding energy efficiency, energy production, and delivery.
The Committee finds that it is in Idaho’s interest that Idaho energy consumers be served
from reliable, diverse, cost-effective and environmentally sound resource portfolios. The
Committee recognizes that fuel diversity contributes to reliable and stable electricity
service by avoiding over-reliance on any one source of energy, and urges utilities to
incorporate fuel diversity as a means of reducing risk. Moreover, in order to maintain
Idaho’s low electricity rates, the Committee finds that Idaho’s utilities need to have access
to a broad variety of resources, both conventional and renewable, and nothing in this
Energy Plan should be read as precluding a utility from investing in a particular resource.
There are many important attributes to a given resource portfolio, including adequacy to
meet customer demands under a variety of circumstances, overall cost, exposure to
commodity price and regulatory risk, and environmental impact. The Committee endorses
integrated resource planning as a useful vehicle for utilities and their stakeholders to assess
the tradeoffs among these different attributes. The Committee notes that each of Idaho’s
investor owned utilities has developed detailed IRP studies over the past several years
under the direction of the PUC. The Committee notes that Idaho’s municipal and
cooperative utilities are not required to utilize IRPs but would encourage these utilities to
follow a similar process involving public input as they meet their new responsibilities to
plan for their future energy needs under new BPA contracts.
Actions
E-1. Idaho utilities should continue to acquire resources that are reliable, affordable, cost-effective and
environmentally sound to meet their customers’ short and long-term electricity needs.
E-2. Idaho investor-owned electric utilities should continue to conduct formal Integrated Resource
Planning, or the individual, board-accepted equivalent for public utilities, to assess the relevant
attributes of a diverse set of supply-side and demand-side resource options and to continue to
provide an opportunity for public input into utility resource decisions.
E-3. The IPUC and Idaho’s municipal councils and cooperative utility boards should ensure that their
orders and actions are consistent with the policies and objectives listed in the Idaho Energy Plan.
E-4. Idaho’s electric utilities should continue evaluating transmission as a resource option in resource
planning and should continue participating in the development of local, sub-regional, regional,
national, and international transmission plans to construct transmission facilities that are needed
to provide reliable, low-cost energy service to their customers.

Idaho’s electric investor owned utilities have the Idaho statutory obligation to plan
sufficient transmission facilities to serve the current and future needs of their customers.
With the establishment of mandatory reliability standards, the need to address

2012 Idaho Energy Plan 116
transmission operations and sufficiency through compliance with these standards has
become more important236. In the context of Integrated Resource Plans filed with the
Idaho PUC every two years, Idaho’s electric utilities consider new or upgraded
transmission facilities as a future resource option, along with new or upgraded
generation facilities and consumer-response programs, such as demand response, energy
conservation, and energy efficiency, to address both reliability needs and access to
needed new resources.

Transmission construction in the United States is not keeping up with increased
electricity demand. The Committee is concerned that this trend could negatively affect
Idaho, and finds that it is important for Idaho utilities to have the appropriate incentives
to construct transmission facilities that are needed to provide reliable, low-cost energy
service to Idaho ratepayers. Idaho’s municipal and cooperative utilities, in particular,
could suffer if new transmission facilities cannot be constructed in a timely and cost-
effective manner to allow those utilities to acquire new resources to meet their future
energy needs. The Committee urges BPA, the investor owned utilities, and the IPUC to
work together to ensure that these utilities continue to receive reliable and cost-effective
transmission service.
Policies
3. When acquiring resources, Idaho and Idaho utilities should give priority to cost-effective
and prudent: 1) conservation, energy efficiency and demand response, 2) renewable
resources, recognizing that these alone will not fulfill Idaho’s growing energy requirements
and that these resources play a role in addition to conventional resources in providing for
Idaho’s energy needs.
The Committee finds that energy conservation and energy efficiency measures provide the
greatest economic and environmental benefits for Idaho (and enhanced economic
competitiveness for our businesses) and should be Idaho’s highest priority energy
endeavor resource. The Committee urges the PUC, city commissions, and utility directors
to ensure that their policies are consistent with this resource priority order.
4. Encourage the development of customer-owned and community-owned renewable energy
and combined heat and power facilities that meet the Energy Plan objectives of the state of
Idaho.
The Committee investigated the characteristics of a broad variety of resource options, and
evaluated the degree to which each resource contributes to the Idaho Energy Plan
Objectives. The Committee finds that demand-side resources, including energy
conservation, energy efficiency, and demand response, possess the best mix of low-cost and
low environmental impact, while contributing to fuel diversity and helping to grow

236 The Energy Policy Act of 2005 established a national Electricity Reliability Organization, which is the
North American Electric Reliability Corporation (NERC), to ensure the reliability of the bulk transmission
system. NERC has the authority to adopt standards approved by its membership and Board and to submit
them to the Federal Energy Regulatory Commission for approval. The Western Electricity Coordinating
Council (WECC) may also initiate and approve regional standards, which must then go through the NERC
and FERC approval processes. Because reliability standards are now mandatory, violations are subject to
penalties and fines.

2012 Idaho Energy Plan 117
Idaho’s economy by keeping dollars at home. Local renewable resources also provide fuel
diversity and help create jobs in Idaho. Consequently, the Committee finds that local cost-
effective renewable resources should be Idaho’s second highest priority. The Committee
further urges the PUC, city commissions, and utility directors to ensure that their policies
are consistent with this resource priority order.
Actions
E-5. Idaho utilities should continue to prepare resource plans that balance a variety of attributes, costs
and risks, including the possibility of federal regulations that impact resource portfolios.

E-6. The state of Idaho should encourage technologies that minimize emissions, harmful pollutants, and
consumptive use of water.

The Committee recognizes that Idaho’s clean air and water are not only critical for the
health of Idaho citizens but also an economic asset that helps draw visitors as well as new
businesses and residents to the state. In addition, Idaho’s water resources are limited in
their capacity to accommodate large new consumptive uses. Finally, the Committee takes
note of the gathering scientific evidence for global climate change and the growing
likelihood of federal regulation of greenhouse gas emissions. Idaho has historically
benefited in each of these areas from its reliance on clean, renewable hydroelectricity to
provide nearly 50 percent of its electricity. However, Idaho’s cost-effective hydroelectric
resources are largely developed, and Idaho’s utilities are considering a variety of
generating resources for meeting future customer needs. While the Committee recognizes
that some conventional resources will be needed to cost-effectively meet load, it urges
Idaho utilities and state agencies to ensure that the impact of new generating resources on
Idaho’s air and water quality is minimized.
Idaho could take actions to attempt to mitigate potential greenhouse gas emission
regulations through:
 Implementing smart growth policies that promote construction of energy efficient
buildings, deployment of fuel efficient vehicles, and reduced vehicle miles traveled.
 Supporting development of additional low carbon resources such as geothermal,
bioelectricity, wind, solar, distributed hydropower, and biomethane.
 Encouraging deployment of geothermal heating and cooling when applicable as an
alternative to electricity and natural gas for homes and commercial buildings.
 Promoting resolution of the carbon flux of Idaho’s forests, developing quantitative
models of forest and agriculture carbon response, and identifying best carbon
management practices. Investment in forestry and agriculture programs can enable
Idaho to sell CO2 credits to neighboring states once the carbon market matures.
 Developing additional policy incentives that stimulate builders to build energy
efficient buildings, and current owners to conduct efficiency retrofits.
 Supporting efforts by the Center for Advanced Energy Studies to lead education and
outreach activities concerning Idaho’s energy issues and the impacts that carbon
regulation will have on the state.

Commodity cycles and the environmental issues associated with natural gas development

2012 Idaho Energy Plan 118
are beginning to impact production of gas at a time when the U.S. is becoming more
dependent on gas-fired electricity, which may begin to elevate gas prices at a time when
Idaho’s economic growth is already constrained by a limited electricity supply. Continued
uncertainty in federal CO2 legislation and energy policy will continue to slow development
of traditional coal and nuclear generating capacity; increasing the upward pressure on
prices and hindering growth. However, there is national momentum to develop the
renewable energy and energy efficiency resources that Idaho has in abundance. Idaho is
particularly well positioned to develop new electricity generation from geothermal, solar,
bioelectricity, and distributed hydropower resources and to reduce energy demand
through expansion of geothermal heating/cooling in commercial buildings. Such activities
would reduce Idaho’s exposure to CO2 risk while also fostering economic growth.237

Actions
E-7. Idaho should encourage cost-effective investment in renewable generation and combined heat and
power facilities.

As with energy conservation and efficiency, renewable energy provides Idaho with
greater environmental and economic development benefits than conventional resources,
but investment in renewables tends to be hindered due to higher initial costs.
E-8. Energy project financing by the Idaho Energy Resources Authority should be encouraged to
promote energy and economic development.
The IERA was granted the authority during the 2005 legislative session to provide
financing for renewable energy projects.238 The IERA is prohibited in the IERA Act from
financing Qualifying Facilities (QFs), as such term is defined in the Public Utilities
Regulatory Policy Act of 1978 (PURPA). Most renewable energy projects in Idaho are
QFs. Secondarily, the few renewable generation projects that approached the Authority
for financing that were not QFs did not have the credit worthiness needed for the IERA
to act as the conduit financing entity for such renewable projects. Adequate power
resources are critical to supporting economic development in Idaho. Financing through
resources such as IERA provide a valuable tool to facilitate such economic growth.

237 Carbon section sources: 2007 Idaho Energy Plan at
http://www.energy.idaho.gov/informationresources/d/energy_plan_2007.pdf; Carbon Issues Task Force
Report at http://www.energy.idaho.gov/energyalliance/taskforce.htm; United States Global Change
Research Program National Climate Assessment at http://www.globalchange.gov/; Climate Change at
the National Academies at http://dels-old.nas.edu/climatechange/; U.S. Climate Change Technology
Program at http://www.climatetechnology.gov/; United States Environmental Protection Agency,
Climate Change, at http://www.epa.gov/climatechange/index.html; United States Department of
Agriculture, Office of the Chief Economist, Climate Change, at
http://www.usda.gov/oce/climate_change/; United States Department of Defense, Quadrennial Defense
Review Report, February 2010, at
http://www.defense.gov/QDR/QDR%20as%20of%2026JAN10%200700.pdf; International Energy Agency
at http://www.iea.org/; Intergovernmental Panel on Climate Change at http://www.ipcc.ch/; Western
Governors’ Association at ,http://www.westgov.org
238 http://www.legislature.idaho.gov/legislation/2005/S1192.html

2012 Idaho Energy Plan 119
E-9. Idaho utilities should provide customers with the information and choices that enable them to
more effectively manage their electricity consumption.

As Idaho moves to a ‚smarter grid,‛ customers will have the potential to manage their
electrical use to minimize their usage during times of peak demand and to respond to
opportunities that allow them to maximize their use of renewable resources. However,
simply installing a ‚smart meter‛ is only the first step. Pricing structures, along with
other options, should be considered that will allow customers to take advantage of this
potential. Customers will also need to be informed on the options and benefits available
to them and educated on how to take advantage of them. Manufacturers and dealers of
appliances and other devices that can communicate with the smart grid will need to be
involved in the planning and implementation of many of these options.
Many utilities, including Idaho’s three investor owned utilities, currently offer programs
that allow customers to voluntarily support clean, renewable energy sources through
their electricity bills. These options could be expanded to effectively utilize the
capabilities of a smarter grid. The Committee encourages all Idaho utilities to move to a
smarter grid and to offer such programs and options to their customers, to focus these
programs on local, Idaho resources, and to provide sufficient funding, support, and
marketing to maximize potential participation in these programs.
E-10. In accordance with federal law, the Idaho PUC should administer its responsibilities under the
Public Utility Regulatory Policy Act (PURPA).
Customer-owned generation and combined heat and power facilities provide additional
economic benefits beyond conventional, central station generation by helping keep local
businesses competitive. The IPUC has historically been among the leaders in
encouraging customer-owned and local renewable generation through its
implementation authority under PURPA. The Committee endorses this direction and
urges the IPUC to continue to administer its authorities in a way that encourages the
development of local generation opportunities.
E-11. It is Idaho policy to encourage investment in customer-owned generation, therefore the Idaho
PUC, utilities, municipalities and cooperative utilities are encouraged to ensure non-
discriminatory policies for interconnection and net metering.
The Committee finds that it is in Idaho’s interest to encourage customer ownership of
small-scale renewable generation such as wind, solar, or micro-hydro in addition to
larger facilities that qualify for PURPA payments. Idaho’s investor owned utilities have
established interconnection and ‚net metering‛ policies for these resources and Idaho’s
municipal and cooperative utilities have developed model policies through the Idaho
Consumer-Owned Utilities Association. The Committee urges the PUC and Idaho
utilities to review these policies to ensure that they encourage investment in small-scale
renewable resources and to fully implement these policies as quickly as possible.
E-12. Idaho utilities should continue to report annually their sources of electricity generation.
Utilities in Washington, Oregon and many other states regularly report the sources of the
electricity sold to retail ratepayers. This initiative, known as ‚fuel mix disclosure.‛ is
intended to educate customers about the fuels that are used in producing the electricity
they use in their homes and businesses.

2012 Idaho Energy Plan 120
CONVENTIONAL GENERATION RESOURCES
Actions
E-13. The Idaho PUC and the Office of Energy Resources and Department of Environmental Quality
should monitor the status of advanced energy generation technologies in order to stay aware of
opportunities and risks.

E-14. Idaho leaders, electric utilities and other energy-related companies, economic development
professionals, universities, other stakeholders and the Idaho National Laboratory should work
cooperatively to assess opportunities and risks associated with development of commercial nuclear
power and nuclear energy-related services in Idaho and provide related recommendations.
As the nation’s lead national laboratory for nuclear energy, the INL can provide Idaho
stakeholders valuable insight, data, infrastructure and expertise to help reduce the
business, technical, and environmental risks associated with advanced technology
deployment, including advanced nuclear electric generation plants and related nuclear
energy technologies. Additionally, INL programs and infrastructure can be a significant
catalyst for public/private energy demonstration programs that could provide both
energy products and economic advantage to the State. Idaho leaders should facilitate
broad dialogue and public engagement to identify opportunities and risks in these areas
and should establish policy appropriate to enabling development in these areas deemed
desirable through this dialogue.
E-15. Idaho should encourage the efficient use of water resources in all energy generation facilities.
Like most western states, Idaho’s climate is semi-arid to arid, and water resources are
likely to be an increasingly binding constraint on future economic development. The
Committee wishes to conserve Idaho’s water resources for the use of agriculture and
industry and encourages developers of thermal power plants in Idaho to utilize cooling
technologies that minimize the consumptive use of water.
TRANSMISSION

Policy
5. It is Idaho policy to encourage a stable, robust, reliable transmission system in order to
provide reliable low-cost energy to Idaho consumers and facilitate renewable
generation.

Actions
E-16. Idaho should continue to participate in regional efforts aimed at increasing the capability of the
western transmission grid and bringing to Idaho the benefits of cost-effective remote resources.

A number of long-distance transmission projects have been proposed for the western
interconnection that would bring low-cost energy from remote areas, such as eastern
Wyoming, eastern Montana or northern Alberta, to load centers in California and the
Southwest. Idaho is unlikely to be a primary destination for such a project due to its

2012 Idaho Energy Plan 121
relatively small electric load, but many of the projects would transit through Idaho and
participation by Idaho utilities could result in some benefit from these projects to Idaho
ratepayers. The PUC and Idaho’s investor owned utilities are already participating in
many western forums that relate to regional transmission expansion and the Committee
encourages them to continue in this activity.
E-17. Energy projects financed by the Idaho Energy Resources Authority should be encouraged to
promote low-cost financing for transmission or distribution projects that benefit Idaho citizens
and promote economic development.
Since being established, the IERA made proposals to finance several transmission
projects to provide benefits to Idaho utilities and their ratepayers, including the potential
for financing Bonneville Power Administration transmission projects to provide critical
connectivity to Southeast Idaho. IERA’s ability to offer low-cost financing for
transmission projects will secure future capacity for continued economic growth and
prosperity. Additionally, the IERA provides a low-cost alternative to distribution system
expansion and replacement for utilities making system improvements by allowing
utilities to aggregate needs to enhance finance attractiveness.
6.3. NATURAL GAS
Policies
6. It is Idaho policy to encourage the most effective use of natural gas and ensure that
Idaho consumers have access to a reliable and low-cost supply.
7. It is Idaho policy to support responsible exploration and production of natural gas
supplies and the expansion of the transmission, storage, and distribution infrastructure.
Natural gas is an increasingly important fuel for Idaho; accounting for approximately 22
percent of Idaho’s end-use energy consumption in 2009 (see Figure 2.13). However, natural
gas pricing is determined in a wholesale market over which Idaho has little authority or
control. Like gas utilities across the country, Idaho utilities purchase their natural gas
supplies from the wholesale market and pass through their costs to customers. This
Energy Plan recommends that Idaho continue to support and encourage efforts to increase
natural gas production and delivery capacity to Idaho utilities. Additionally, the
Committee finds it is generally in Idaho’s interest to encourage the use of natural gas for
space and water heating and can support current and future efforts on the part of Idaho’s
gas utilities to promote energy conservation programs.
Actions
NG-1. Idaho should encourage investments in natural gas supply resources, including landfill methane,
anaerobic digesters, and biomass methane in a manner that protects property owners and the
environment.
Heating homes and businesses with natural gas is more efficient than heating them with
electricity when energy losses due to fuel conversion and delivery are considered.
Therefore, the Committee finds it is in Idaho’s interest to encourage the use of natural gas
rather than electricity in these instances. The PUC regulates both electric and natural gas
utilities and its line extension policies can affect the rate at which natural gas service is
extended to new Idaho communities. The Committee recommends that the PUC

2012 Idaho Energy Plan 122
consider the net cost of energy service to Idahoans, including energy conversion losses
and the relative cost of natural gas and electric energy, when establishing policies
governing line extensions and other aspects of natural gas and electricity service. A
statue similar to Section 63-3022QQ, Idaho Code, which expired 6/30/11, could also be
added to the Idaho Code to provide a sales tax exemption for the purchase of specific
types of renewable energy equipment used to produce electricity or to provide fuel for
heating or propulsion of vehicles.
6.4. PETROLEUM AND TRANSPORTATION FUELS
Policies
8. It is Idaho policy to promote the production and use of cost-effective and environmentally
sound alternative fuels.
9. It is Idaho policy to promote conservation and efficiency as a means of reducing the
burden of transportation fuel expenditures, improving the reliability and cost of Idaho’s
transportation fuel supply, and reducing transportation-related emissions.
10. It is Idaho policy to support responsible exploration and production of petroleum supplies
and the expansion of transmission, storage, and distribution infrastructure benefiting
Idaho.
Like natural gas, Idaho has little direct control over petroleum supply or pricing. Prices for
the gasoline, diesel, and other petroleum products consumed by Idaho citizens and
businesses are closely tied to crude oil, which is traded in a global market. Thus, Idaho
consumers are directly exposed to price effects resulting from political uncertainty in
regions that are thousands of miles away. Unlike natural gas, Idaho exercises no price
regulation over the infrastructure for distributing petroleum products. While petroleum
products make up nearly 40 percent of Idaho’s end-use energy consumption (see Figure
2.13), Idaho has less leverage over the petroleum industry than it does over electricity and
natural gas. Thus, the Committee’s recommendations in the area of petroleum and
transportation fuels are principally aimed at reducing Idaho’s petroleum dependence
through more efficient use of oil products and increased utilization of locally-produced
biofuels such as ethanol and biodiesel. The Committee does not recommend renewable
fuel standards or other mandates at this time.
ALTERNATIVE FUELS

Actions
T-1. Idaho should ensure that its state vehicle procurement rules promote purchases of high efficiency,
flex-fuel, and alternative fuel vehicles where cost-effective.
Idaho state government owns and operates a very large fleet of passenger vehicles. With
centralized purchasing, maintenance ,and fueling, fleets present a particularly attractive
venue for the adoption of alternative fuel vehicles. This represents an opportunity for
Idaho to help demonstrate and support the market for technologies that reduce Idaho’s
petroleum dependence, and the Committee encourages Idaho state agencies to explore
ways to increase their purchases of high efficiency and alternative fuel vehicles. We take
note that Allied Waste, Idaho’s largest trash & recycling hauler, is building compressed

2012 Idaho Energy Plan 123
natural gas public (CNG) pumps in Boise (two sites) and Nampa (one site), following
their decision to convert their local fleet of over 120 refuse trucks to CNG.239
T-2. Idaho should encourage the purchase of efficient, flex-fuel and alternative fuel vehicles.
As with other alternative technologies, high initial cost is a barrier to increased
deployment of high efficiency and alternative fuel vehicles. Incentives such as income
tax credits and sales and use tax exemptions can help to reduce the initial cost, making
these technologies more affordable for Idaho citizens and businesses. Note that the state
may lose tax revenue for roads and bridges as alternative transportation sources such as
electricity and compressed natural gas are further developed, as these sources may not be
taxed like gasoline. In addition, as vehicles continue to get better mileage, less tax
revenue will come to the state. It should be noted that the addition of ethanol reduces
fuel mileage. The amount of reduction depends upon the ethanol blend with E10 (10%
ethanol in gasoline) providing about a two to three percent reduction in miles per gallon
while the reduction using E85 is usually around 25 percent.240 241
T-3. Idaho should encourage investments in retail and wholesale alternative fuel supply
infrastructure.
Alternative fuels, such as ethanol and biodiesel, can require substantial investment in
new infrastructure as straight ethanol and biodiesel as well as high-level blends cannot
be transported or dispensed with the existing equipment used for petroleum fuels. The
large capital investment required for this new infrastructure is a significant barrier to the
distribution and sale of alternative fuels. The Committee finds that it is in Idaho’s
interest to promote the development of alternative fuel distribution infrastructure and
recommends tax incentives as a way to help reduce the high initial cost.
T-4. Idaho should promote research and development and business-university partnerships to speed the
commercialization of alternative fuel technologies.

The biofuels industry stands to benefit from additional research into methods for
increasing the net energy yield of the biofuels cycle (energy produced through
combustion of the biofuels relative to the energy used to produce the fuel). The INL and
University of Idaho are active in a variety of research efforts related to alternative fuels
and may be good partners in this area. The Committee believes that commercialization of
cellulosic ethanol, in particular, would benefit Idaho because it could utilize wood waste
and crop residues such as wheat straw, which are abundant in Idaho. It is interesting to
note that though there is a fairly large ethanol plant in Burley, the corn feedstock is not
coming from Idaho farmers but from the Midwest by train.

239 http://www.tvcleancities.org/ and http://www.cngprices.com/stations/CNG/Idaho/
240 U.S. Department of Energy, Energy Efficiency & Renewable Energy, ‚Ethanol‛,
www.fueleconomy.gov/feg/ethanol.shtml
241 Changes in Gasoline IV, Renewable Fuels Association, June 2009,
http://ethanolrfa.3cdn.net/dd9e74ce1c454a97cc_rbm6bdgh3.pdf

2012 Idaho Energy Plan 124
TRANSPORTATION FUEL CONSERVATION

Actions
T-5. Idaho should encourage the installation and operation of equipment that reduces truck and tour
bus idling.
Truck and tour bus idling wastes millions of gallons of diesel fuel each year and results
in increased emissions of particulates and sulfur dioxide. Truck idling is necessary when
truck drivers stop to sleep in a rest area or parking lot and need to run the heater or air
conditioner to keep the cab at a comfortable temperature. Programs are underway to
encourage the installation of technology that would allow trucks and tour buses to plug
into the local grid instead of idling. The Committee encourages the deployment of these
technologies.

6.5. CONSERVATION AND ENERGY EFFICIENCY

Actions
CE-1. All Idaho utilities should fully incorporate cost-effective conservation, energy efficiency, and demand
response as priority resources in their Integrated Resource Planning.
The Committee intends that Idaho utilities should make cost‐effective conservation, energy
efficiency and demand response the highest priority resources in their IRPs. The
Committee recommends the ‚Total Resource Cost‛ perspective as the appropriate test of
the cost‐effectiveness of conservation measures, and provides the following definition of
cost‐effectiveness as guidance: ‚Cost‐effectiveness of a conservation measure means that
the lifecycle energy, capacity, transmission, distribution, water and other quantifiable
savings accruing to Idaho citizens and businesses exceed the direct costs of the measure to
the utility and participant.‛

CE-2. The Idaho PUC should encourage investor owned utilities (IOUs) to pursue cost-effective
conservation in their service territories.

Each of Idaho’s investor owned utilities establishes numerical targets for the acquisition of
conservation resources in the preparation of their biennial Integrated Resource Plan (IRP).
These plans are developed in a public process administered by each utility, then reviewed
by the Commission, which also establishes a period for public comments. The final plans
are accepted for filing by the Commission.

2012 Idaho Energy Plan 125
Each utility has contracted for the preparation of a ‚conservation potential study‛ by an
independent third party expert that identifies the amount of conservation that is technically
possible, the amount that is economically potential (i.e. cost effective), and the amount that
can realistically be expected to be acquired by the utility, given that not every owner of a
conservation project will agree to participate in a utility’s programs. The public may
comment on these studies during the utility’s IRP process or during the Commission’s
review of an IRP.

CE-3. The Idaho PUC should establish and continue to periodically update an avoided-cost benchmark for
each investor owned utility to be used in evaluating the cost-effectiveness of conservation and
renewable resource investments and in calculating payments to Qualifying Facilities (QFs) under the
Public Utility Regulatory Policy Act (PURPA).

The avoided costs to be used by each utility in evaluating the cost-effectiveness of
conservation resources is developed by each utility through its preparation of its Integrated
Resource Plan. Each IRP is updated every other year. The results will vary by resource,
depending upon the specific characteristics of the conservation resource, such as the
expected time of day or seasonality of the savings. The PUC currently publishes avoided
costs that are used for payments to QFs smaller than 10 average megawatts (and smaller
than 100 kW for wind and solar facilities). These published avoided cost rates are updated
whenever significant changes occur in fuel prices or resource costs. Avoided cost rates for
large QFs are computed on a case-by-case basis whenever a new project is proposed.

CE-4.The Idaho PUC should seek to eliminate disincentives that stand as barriers to implementing cost-
effective conservation measures. The PUC should consider appropriate methods to avoid the
disincentives associated with investor owned utility conservation efforts. Options may include, but
are not limited to:
i. Recovery of revenues lost due to reduced sales resulting from conservation investments;
ii. Capitalization of conservation expenditures;
iii. A share of the net societal benefits attributable to the utility’s energy efficiency programs.
CE-5. The Idaho PUC should support market transformation programs that provide cost-effective energy
savings to Idaho citizens.
‚Market transformation‛ refers to energy efficiency programs that promote the
manufacture and purchase of energy‐efficient products and services. The goal of market
transformation is to induce lasting structural and behavioral changes in the marketplace,
resulting in increased production and adoption of energy‐efficient technologies and energy
savings that continue to accrue even after the program ends. Idaho’s investor owned
utilities participate, along with many other regional utilities, in the Northwest Energy
Efficiency Alliance (NEEA), which administers market transformation programs on a
regional scale. BPA also provides funding to NEEA on behalf of Idaho municipal and
cooperative utilities. The Committee encourages the PUC and utilities to continue
supporting market transformation as long as doing so continues to provide net benefits to
Idaho citizens.

2012 Idaho Energy Plan 126
CE-6. The Idaho PUC and Idaho utilities should continue to adopt rate designs that encourage more
efficient and effective use of energy.
Examples of innovative designs currently in use include tiered rates, which charge a higher
rate for larger quantities of electricity used in a given month, or time-of-use rates that
change by season and perhaps even by time of day.
CE-7. Idaho’s municipal and cooperative utilities should annually report their estimates of conservation in
their service territories and their estimated savings in electrical energy (MWh) and peak capacity
(kW) during the lifetime of the measures implemented.
The Committee recognizes that municipal and cooperative utilities are governed by locally-
elected city councils and boards of directors, and the Committee does not recommend
increased state oversight of these utilities. The Committee expects municipal and
cooperative utilities to be guided by the policies and recommendations of this Energy Plan.
The Committee finds that state government needs to have good information about the
efforts of municipal and cooperative utilities to capture energy savings in their service
territories. Historically, public power in Idaho has been on the forefront of energy
conservation and efficiency programs, with many offering energy efficiency programs for
more than 25 years. These public power utilities are customers of the Bonneville Power
Administration (BPA) and participate in the development and deployment of BPA
conservation efforts based on the goals of the Northwest Power Plan provided by the
Northwest Power and Conservation Council. The Committee recognizes that these utilities
report results annually to Bonneville Power Administration and the Northwest Power and
Conservation Council. The Committee encourages these utilities to make available the
reported information, when requested by the State.
CE-8. Idaho should encourage investments in energy efficient technologies to the extent practical.
The high initial cost of many energy-saving technologies is among the most important
barriers to increased deployment of energy efficiency. While the life-cycle cost of these
technologies (including the cost of energy during the lifetime of the product) is lower than
the cost of less efficient technologies, consumers typically demand very rapid payback
periods for efficiency investments. Idaho’s current Residential Alternative Energy Tax
Deduction allows an income tax deduction up to $20,000 over four years for solar, wind,
geothermal, and pellet stoves.242 The Committee recommends expanding this program to
include energy efficient technologies.
CE-9. Idaho should review international energy codes on a three-year cycle as a minimum for building
energy efficiency standards and should provide technical and financial assistance to local jurisdictions
for implementation and enforcement.
The International Energy Code sets minimum performance standards for residential and
commercial buildings.243 Requiring that new buildings meet these energy efficiency
requirements will result in gradual but significant and long-lasting reductions in building
energy consumption, often with little or no increase in total project cost. Many

242 Idaho Statutes § 63-3022C
243 More information about International Building Codes can be found at the International Code Council
website: http://www.iccsafe.org/

2012 Idaho Energy Plan 127
opportunities to cost-effectively lower building energy usage would be lost without
adoption and enforcement of the energy efficiency standards.
CE-10. Idaho State Government will:
i. Demonstrate leadership by promoting cost-effective energy efficiency, energy efficient
products, use of renewable energy, and fostering emerging technologies by increasing
energy efficiency in State government;
ii. Ensure that public facility procurement rules allow implementation of cost-effective
energy efficiency and small-scale generation at public facilities;
iii. Collaborate with utilities, regulators, legislators, and other impacted stakeholders to
advance energy efficiency in Idaho’s economy;
iv. Work to identify and address barriers and disincentives to increased acquisition of energy
conservation and efficiency;
v. Educate government agencies, the private sector, and the public about the benefits and
means to implement energy efficiency.
In the K-12 area, develop a comprehensive K-12 energy efficiency education program to
include curriculum, interactive kiosks, and other program activities. For grades 3-8,
promote and encourage school participation in America’s Home Energy Education
Challenge244 to engage students and their families in a save energy, save money initiative.
Sponsored by the Department of Energy and administered by the National Science Teachers
Association, it aims to enhance and extend existing energy-focused programs, provide
specific home energy-saving tips, and make materials that support the learning of science
and energy available to schools. Participating schools compete for more than $200,000 in
prizes distributed at the regional and national levels of the competition.
At the state and local government level, require owners of state and local government
buildings over 10,000 square feet, including school districts, to benchmark their building’s
energy consumption. The resulting Statement of Energy Performance must be disclosed to
the Idaho Energy Office on an annual basis. At the request of a building owner, utility
companies will be required to provide electronic energy consumption data to be uploaded
into Portfolio Manager software.245
The State Board of Education, in conjunction with CAES CEERI, should conduct or fund a
feasibility assessment for developing an Energy Design, Engineering, and Operations degree
program in Idaho. This could be a multi-university degree or certificate offering Renewable
Generation Resources.

244 http://www.homeenergychallenge.org/
245 http://www.buildingrating.org/

2012 Idaho Energy Plan 128
6.6. ENERGY FACILITY SITING

Policies
11. Idaho state agencies should play a role in providing technical information to support
local energy facility siting decisions.

Many states have energy facility siting bodies that assess the costs and benefits of new
large energy facilities and decide whether and under what conditions the facility should
be allowed to operate. Many stakeholders continue to believe that the existing system
under which local officials make energy facility siting decisions meets Idaho’s needs. The
Committee does not endorse moving energy facility siting decisions to the state level but
the Committee recommends that state resources be made available at the request of local
officials to provide technical assistance.
Actions
S-1. The Office of Energy Resources should ensure local officials are aware of the Energy Facility Site
Advisory Act (“the Act”) and the opportunity to establish Energy Facility Site Advisory Teams to
provide technical assistance when requested by local jurisdictions.
The Committee finds that it is in Idaho’s interest to make state resources available to
assist local officials in making energy facility siting decisions. The Act allows for teams
to be appointed upon request from a local jurisdiction that has been asked to site an
electric generating facility with a rated capacity greater than 50 MW. While the
Committee recommends retaining the ultimate decision-making authority at the local
level, the Committee believes that the use of Energy Facility Site Advisory Teams can
help local officials make informed decisions. Therefore, the Committee recommends that
the OER take action to ensure local officials are aware of the Act and opportunity to
establish Energy Facility Site Advisory Teams. Adequate funding of OER will ensure
that OER can provide assistance and coordination for local government, among other
activities, when the need arises.
S-2. Sponsors of new transmission line projects in Idaho should consider adopting best practices from
the siting of other transmission lines in the Western Interconnection.
The siting of new transmission capacity has been the subject of a great deal of public
interest and, in some cases, vocal opposition. The Committee understands and
appreciates many of the concerns voiced by Idaho’s citizens, but also believes that new
transmission capacity will be needed to help serve Idaho’s growing electricity demands.
The Committee therefore supports efforts to improve the way in which new transmission
lines are sited. The Committee encourages project sponsors and other interested parties
to participate in and consider the recommendations arising from such efforts. The
Committee also believes, because of the high level of public interest in transmission line
proposals since the 2007 Plan was enacted, that the Act should be expanded to allow
local officials to request technical assistance under the Act to support their evaluations of
the local impacts of transmission projects.

2012 Idaho Energy Plan 129
6.7. ECONOMIC DEVELOPMENT
Policies
12. Pursue regional dialogue with neighboring states and provinces, with the goal of
pursuing common energy market economic development interests and managing energy-
related policy risk.
13. Continue to promote energy-related jobs and career opportunities for Idaho citizens.
Actions

ED-1. Encourage a broader engagement with the Center for Advanced Energy Studies (CAES)
to advance energy-related technology commercialization, efficiency, research, and
deployment.

6.8. ENERGY OUTREACH AND EDUCATION

Policies
14. Idaho should raise the awareness of energy challenges and opportunities in Idaho
through education and outreach.

Energy is a critically important industry. Reliable, affordable energy supplies are not
only critical to the functioning of a modern economy but are necessary to protect the
public health and safety. In addition, the extraction, generation and delivery of energy
require energy facilities with a large ‚footprint.‛ In short, the nature of energy systems
necessitates a strong degree of public oversight, and regulation of electric and natural gas
utilities places the state in a very active oversight role. The Committee believes that it is
crucial for policymakers to maintain consistent oversight of the energy industry and to
stay informed about the latest technological and institutional developments. To that end,
the Committee recommends a number of steps to raise the profile of energy issues within
state government and to promote and oversee implementation of the recommendations
of this Energy Plan.
Actions
EE-1. Encourage schools providing courses or workshops on energy systems, technologies, issues, and
approaches.
EE-2. The Office of Energy Resources should continue and, with the Idaho Strategic Energy Alliance
and the Public Utilities Commission, should engage in public outreach and education and work
with Idaho energy stakeholders to promote a reliable, diverse, cost-effective and environmentally
sound energy system for the benefit of Idaho citizens and businesses.
One of the roles that the Committee envisions for the OER is to work with the public,
policymakers, utilities and other Idaho energy stakeholders to promote the development
and maintenance of a portfolio of energy resources that support the objectives of this
Energy Plan. Provided the monetary means to do so, the OER would serve as a
clearinghouse for information about new technologies and ways to use energy more
efficiently and would provide this information in a variety of energy policy forums.

2012 Idaho Energy Plan 130
EE-3. The Office of Energy Resources, as requested by the Legislature and at least every two years, will
report to the Legislature as requested on the progress of Idaho state agencies, energy providers,
and energy consumers in implementing the recommendations in this Energy Plan.
The Committee recommends that the standing committees with jurisdiction over energy
issues maintain active oversight over the implementation of this Energy Plan and that the
Idaho Strategic Energy Alliance be available to provide ongoing expertise and
information. The Committee recommends that the OER and the PUC submit a report to
the Legislature and testify to the standing committees every two years regarding the
progress that has been made in implementing the recommendations of this Energy Plan.
It is the Committee’s expectation that this will provide a forum for standing committee
members to consistently engage with state energy policy issues.
EE-4. The Interim Committee recommends that the Legislature develop a process and approach to
continually update data and assess opportunities and risks on a yearly basis and perform a
complete revision of the Energy Plan on at least a five year basis.
The Committee finds that it is important that the recommendations in this Energy Plan
be subject to an organized review on a regular, scheduled basis to ensure that they
continue to reflect the best interests of Idaho citizens and businesses. While the
Committee cannot bind future Legislatures to a schedule for Energy Plan updates, the
Committee recommends that the plan be revisited approximately every five years, and
that periodic updates be provided by the Idaho Strategic Energy Alliance as needed.

2012 Idaho Energy Plan 131

Minority Report

IN RESPONSE TO THE STATE ENERGY PLAN PREPARED AND SUBMITTED TO THE
IDAHO LEGISLATURE BY THE ENERGY, ENVIRONMENT AND TECHNOLOGY INTERIM
COMMITTEE

We the undersigned do respectfully submit this Minority Report to the Idaho Legislature, based
on the following facts and conclusions:

1. In 2007, the Idaho Legislature created a comprehensive state energy plan that promoted a
clean, reliable and secure energy future. In keeping with that goal, the undersigned
strongly support the Committee’s decision to reaffirm energy efficiency as a highest
priority resource. We also support the decision to promote the International
Conservation Energy codes for buildings.
2. Tax incentives are one of the most powerful tools available to encourage or discourage
specific policy goals. The use of tax incentives to encourage practices for energy
efficiency saves energy, creates jobs, and strengthens the economy. The undersigned
recommend expanding tax incentives for investments in energy efficient technologies by
Idaho businesses and households.
3. Low-income families are particularly vulnerable to energy price increases and supply
disruptions. During extreme weather conditions, people living in poverty may be forced
to choose between buying fuels to heat or cool their home and buying food or medicine
for their families. The undersigned believe that the Legislature should give the Public
Utilities Commission the authority to approve low-income bill payment assistance and
other programs that gas and electric utilities propose to assist these customers.
4. Idaho is one of only a few states around the country and the only western state without a
dedicated consumer advocate representing residential customers in rate cases before the
Public Utilities Commission. There are two potential options for a consumer advocate.
The Legislature could ask the Attorney General’s office to perform this function through
the current Consumer Protection Division. Another option is called a citizen utilities
board (CUB), which is an independent nonprofit entity. With either model, the
Legislature could provide specific direction on the duties and structure of the consumer
advocate role through statute. The undersigned recommend that Idaho create a
consumer advocate, who would help to level the playing field for residential customers
in rate cases.
5. Encouraging customer and community-owned renewable energy--commonly known as
distributed generation--allows Idahoans to take responsibility for their energy future,
promotes economic development and local, high-wage job creation, and reduces Idaho’s
dependence on imported energy sources. In 2009, the National Renewable Energy
Laboratory released a study on the economic impacts of community-owned wind
generation. This study concluded that community-owned wind projects produced more
construction-related and operations-related jobs than wind projects owned by absentee
owners. The undersigned support empowering the citizens of Idaho through the
expansion of distributed energy.
6. Locating energy facilities of all types, both generation and transmission, continues to be a

2012 Idaho Energy Plan 132
challenge across Idaho. These facilities are unique as compared to other land-use
decisions since they can have a significant impact both locally and statewide. The
undersigned recommend that the state develop a siting process that can be applied to
projects that are 10MW and above, provide the technical expertise required for local and
state government to make informed decisions, and include a provision for the local
governing body to collect fees from the project developer to cover the costs of such
technical expertise.
7. The undersigned recommend that the state work to promote increasing fuel mileage
standards for vehicles that improve fuel economy, promote energy independence, and
reduce the environmental impacts of vehicles.
8. Idaho is one of four states that does not provide state funding or allow for the use of local
option taxes for public transportation. Improving public transportation in Idaho is key to:
conserving fuel; minimizing traffic congestion, road construction and maintenance costs;
improving air quality; and enhancing the quality of life for our citizens. The undersigned
recommend that the Legislature enable local option tax authority to support the use and
expansion of public transportation for the benefit of all citizens.
9. The undersigned recommend that Idaho encourage regional land use planning and
policies that minimize vehicle miles traveled.
10. Buildings consume up to 50% of the nation’s energy resources. The undersigned
recommend that Idaho continue to evaluate all state-owned or state-occupied buildings
for energy efficiencies and encourage highly energy efficient design in new construction.

A majority of the members of the Energy, Environment and Technology Interim Committee
declined to include the recommendations above in the 2012 Idaho Energy Plan. Such provisions
are important to protect the interests of the citizens of this state and to render meaningful the
objectives of the Energy Plan. For the reasons set forth above, the undersigned submit this
Minority Report to the Idaho Legislature.

Dated this Xth of January, 2012.

Senator Elliot Werk Representative Wendy Jaquet

Senator Dan Schmidt Representative Brian Cronin
(Ad Hoc Member)

2012 Idaho Energy Plan A-1
Appendix A: List of Idaho Electric and Natural Gas Utilities
Table 0.1. Idaho Electric Utilities in 2009
Source: http://www.eia.gov/cneaf/electricity/page/eia861.html (File 2)

Table 0.2. Idaho Natural Gas Utilities in 2009

Source: http://www.puc.state.id.us/ar2009/gas.pdf
UTILITY NAME Customers in Idaho
Idaho Demand in
Million Therms
Intermountain Gas 299,889 559
Avista Corp 72,265 125
Questar Gas 1,923 2

2012 Idaho Energy Plan B-1

Appendix B. Definitions
Accelerated depreciation: Any method of depreciation used for accounting or income tax
purposes that allows greater deductions in the earlier years of the life of an asset, as opposed to
straight-line depreciation that spreads the cost evenly over the life of an asset. Accelerated
depreciation encourages capital projects, the benefits of which are passed on to utility customers
in the form of updated and expanded generation, transmission and distribution infrastructure.
Advanced energy production technologies: Included in this category are: a) power generation
via gasified coal with carbon sequestration, advanced nuclear technologies, and new and less
expensive solar and photovoltaics; b) transportation technologies, including fuel cells and
advanced biofuels, which includes any alcohol-based fuel other than corn ethanol; and c) other
technologies, including advanced battery storage, materials research, hydrogen production,
increased turbine efficiencies, and advanced energy-related computer systems, sensors, controls
and instrumentation.
Advanced Metering Infrastructure (AMI): AMI is the term coined to represent the networking
technology of fixed network meter systems that go beyond automated meter reading (AMR) into
remote utility management. The meters in an AMI system are often referred to as smart meters,
since they often can use collected data based on programmed logic. Originally AMR devices just
collected meter readings electronically and matched them with accounts. As technology has
advanced, additional data could then be captured, stored and transmitted to the main computer
and often the metering devices could be controlled remotely. Many AMR devices can also
capture interval data and log meter events. The logged data can be used to collect or control time
of use or rate of use data that can be used for energy or water usage profiling, time of use billing,
demand forecasting, demand response, energy conservation enforcement, remote shutoff, etc.
Aggregator: As it relates to Direct Access, an aggregator refers to a company that consolidates a
number of individual users and/or suppliers into a group in order to sell power in bulk.
Auction: In the context of a cap and trade system, a process of bidding for greenhouse gas
emission allowances.
Automated meter reading (AMR): Technology of automatically collecting data from energy or
water metering devices and transferring that data to a central database for billing and/or analysis.
This form of utility data collection eliminates the need for each meter to be visually read by a
technician, thereby reducing personnel costs.
Avoided cost: The cost to produce or otherwise procure electric power that an electric utility does
not incur because it purchases this increment of power from a qualifying facility (QF). It may
include a capacity payment and/or an energy payment component.
Backup power: Power provided by terms of the contract to a customer when the normal source is
unavailable.
Baseload: The minimum amount of electric power or natural gas delivered or required over a
given period of time at a steady rate. The minimum continuous load or demand in a power
system over a given period of time.

2012 Idaho Energy Plan B-2
Baseload plant: A plant that is normally operated to take all or part of the minimum continuous
load of a system and that consequently produces electricity at an essentially constant rate. These
plants are operated to maximize system mechanical and thermal efficiency and minimize system
operating costs. Traditionally, coal, nuclear plants, and some high efficiency natural gas plants
have been considered baseload plants. Baseload plants are also required to firm intermittent
energy resources such as wind or solar.
Base rate: A charge normally set through rate proceedings by appropriate regulatory agencies
and fixed until reviewed at future proceedings. It is calculated through multiplication of the rate
from the appropriate electric rate schedule by the level of consumption.
Biomass: Plant materials and animal waste used as a feedstock for energy production.
Bonneville Power Administration: A power marketing and electric transmission agency of the
U.S. government with headquarters in Portland, Oregon.
Brokers: Agents who match wholesale power buyers to sellers for a fee. They are subject to
Federal Energy Regulatory Commission jurisdiction.
Brownout: A reduction in the voltage at which customers are supplied due to a power shortage,
system or mechanical failure, or overuse by customers. Loads may not actually be disconnected,
but brownouts can still be very harmful to electronic equipment, especially if prolonged.
Brownouts may be noticeable to the consumer (such as flickering or dimming of lights), but are
not always apparent.
BTU: British Thermal Unit is a traditional unit of energy equal to about 1,055 joules. Production
of 1 kWh of electricity generated in a thermal power plant requires about 10,000 BTUs. 1 gallon
gasoline ≈ 125,000 BTUs.
Cap and Trade: A market-based policy tool for reducing emissions. The program first sets a cap,
or maximum limit, on emissions. Sources covered by the program then receive permits to emit in
the form of emissions allowances. Sources are allowed to buy and sell emission allowances in
order to continue operating in the most profitable manner available to them. Over time, the cap
becomes stricter, leading to the reduction in emissions.
Capacity (electric): The maximum power that can be produced by a generating resource at
specified times under specified conditions.
Capacity factor: A capacity factor is the ratio of the average power output from an electric power
plant compared with its maximum output. Capacity factors vary greatly depending on the type
of fuel that is used and the design of the plant. Baseload power plants are operated continuously
at high output and have high capacity factors (reaching 100 percent). Geothermal, nuclear, and
coal plants, as well as large hydroelectric and bioenergy plants that burn solid material are
usually operated as baseload plants. Many renewable energy sources such as solar, wind, and
small hydroelectric power have lower capacity factors because their fuel (wind, sunlight, or
water) is not continuously available.
Capacity (gas): The maximum amount of natural gas that can be produced, transported, stored,
distributed, or utilized in a given period of time under design conditions.

2012 Idaho Energy Plan B-3
Capacity, peaking: The capacity of facilities or equipment normally used to supply incremental
gas or electricity under extreme demand conditions. Peaking capacity is generally available for a
limited number of days at a maximum rate.
Carbon capture and sequestration: An approach to mitigate climate change by capturing carbon
dioxide from large point sources, such as power plants, and storing it instead of releasing it into
the atmosphere. Technology for sequestration is commercially available and is used at many
locations at a modest scale primarily for oil and gas recovery. However, technology needed for
capturing carbon dioxide from large point sources has yet to be developed. Although carbon
dioxide has been injected into geological formations for various purposes (such as enhanced oil
recovery), long-term storage on a large scale has yet to be demonstrated. To date, no large-scale
power plant operates with a full carbon capture and storage system.
Carbon dioxide (CO2): A gaseous substance at standard conditions composed of one carbon
atom and two oxygen atoms produced when any carbon-based fuels are combusted. It is
considered by many scientists a major contributor to global climate change. Plants use carbon
dioxide for photosynthesis and for plant growth and development. The atmosphere contains
about 0.039 percent CO2.
Carbon offset (greenhouse gas emission offset): A financial instrument aimed at a reduction in
greenhouse gas emissions. Offsets are typically achieved through financial support of projects
that reduce the emission of greenhouse gases in the short- or long-term. The most common
project type is renewable energy, such as wind farms, biomass energy or hydroelectric dams.
Others include energy efficiency projects, forestry projects, the destruction of industrial
pollutants or agricultural by-products, and the destruction of landfill methane.
Carbon tax: A direct tax on carbon dioxide and other greenhouse gas emissions intended to
reduce emissions of carbon dioxide, which is generated as a by-product of the combustion of
fossil fuels, among other processes. Unlike other approaches, such as a cap and trade system, a
carbon tax lends predictability to energy prices for consumers.
Class of service: A group of customers with similar characteristics (e.g., residential, commercial,
industrial, etc.) that are identified for the purpose of setting a rate for service.
The Climate Registry: A nonprofit partnership working to develop an accurate and transparent
greenhouse gas emissions measurement protocol that is capable of supporting voluntary and
mandatory greenhouse gas emission reporting policies. It will provide a verified set of
greenhouse gas emissions data from reporting entities supported by a robust accounting and
verification infrastructure.
Coal gasification: A process by which synthetic gases are made from coal by reacting coal, steam
and oxygen under pressure and elevated temperature. These gases can be used in processes to
produce electricity or to make a variety of carbon-based products, including methane (natural
gas), gasoline, diesel fuel, and fertilizer.
Cogeneration: Also known as ‚combined heat and power‛ (CHP) or cogen. The simultaneous
production of heat (usually in the form of hot water and/or steam) and power utilizing one
primary fuel. Cogeneration is often used to produce power as a secondary use of the waste
steam/heat from a primary industrial process.

2012 Idaho Energy Plan B-4
Commercial: A sector of customers or service defined as non-manufacturing business
establishments, including hotels, motels, restaurants, wholesale businesses, retail stores and
health, social and educational institutions. A utility may classify the commercial sector as all
consumers whose demand or annual use exceeds some specified limit. The limit may be set by
the utility based on the rate schedule of the utility.
Commission: State public utility commission(s); the Federal Energy Regulatory Commission.
Concentrating solar power (CSP): A process that uses lenses or mirrors and tracking systems to
focus a large area of sunlight into a small beam. The concentrated light is then used as a heat
source for a conventional power plant or is concentrated onto photovoltaic surfaces.
Conservation: Demand-side management (DSM) strategy for reducing generation capacity
requirements by implementing programs to encourage customers to reduce their energy
consumption. Program examples include incentives/savings for the installation of energy efficient
appliances, lighting and electrical machinery, and weatherization materials.
Control area: A geographical area in which a utility is responsible for balancing generation and
load. A control area approximates the service area of a utility.
Conventional energy resource: As used in this report, includes fossil fuels (oil, coal, and natural
gas) and nuclear power.
Cooperative electric utility (Co-op): Private, not-for-profit electric utility legally established to be
owned by and operated for the benefit of those using its service. It will generate, transmit, and/or
distribute supplies of electric energy to cooperative members. Such ventures are generally
exempt from federal income tax laws. Many were initially financed by the Rural Electrification
Administration, U.S. Department of Agriculture.
Cost-based rate: A rate based upon a projected cost of service and throughput level, contrasted
with a market-based rate determined directly by supply and demand.
Cost of capital: The weighted average of the cost of various sources of capital, generally
consisting of outstanding securities such as mortgage debt, preferred stock, and common stock.
Cost of service: The total cost to provide service, including return on invested capital, operation
and maintenance costs, capital costs, administrative costs, taxes and depreciation expense.
Traditional utility cost of service may be expressed as: operating costs + taxes + (rate of return x [cost
of plant - depreciation]). More frequently called revenue requirement.
Cross-subsidization: The practice of charging rates higher than the actual cost of service to one
class of customers in order to charge lower rates to another class of customers.
Cubic foot: The most common unit of measurement of gas volume; the amount of gas required to
fill a volume of one cubic foot under stated conditions of temperature, pressure, and water vapor.
Curtailment: A temporary, mandatory power reduction under emergency conditions taken after
all possible conservation and load management measures and prompted by problems of meeting
peak energy demand.

2012 Idaho Energy Plan B-5
Customer costs: Costs directly related to serving a customer, regardless of sales volume, such as
meter reading, billing and fixed charges for the minimum investment required to serve a
customer.
Demand: The amount of power consumers require at a particular time. Demand is synonymous
with load. It is also the amount of power that flows over a transmission line at a particular time.
System demand is measured in megawatts.
Demand-side management (DSM): The term for all activities or programs undertaken by an
electric system to influence the amount and timing of electricity use. Included in DSM are the
planning, implementation and monitoring of utility activities that are designed to influence
customer use of electricity in ways that will produce desired changes in a utility's load shape
such as, among other things, direct load control, interruptible load, and conservation.
Depreciation: The loss of value of assets, such as buildings and transmission lines, to age and
wear. Among the factors considered in determining depreciation are wear and tear, decay, action
of the elements, inadequacy, obsolescence, changes in the technology, changes in demand,
requirements of public authorities, and salvage value. Depreciation is charged to utility
customers as an annual expense.
Deregulation: The reduction or elimination of government power in a particular industry usually
enacted to create more competition within the industry. Since the mid-1990s, many states across
the nation have embarked on some form of deregulation of the electric industry, allowing the sale
of electricity at market prices with the theory that competition will keep prices low, compared to
a regulated market in which customer rates are directly tied to costs. (See also restructuring.)
Direct Access: The ability of a retail customer to purchase commodity electricity directly from the
wholesale market rather than through a local distribution utility. (See also Industrial bypass.)
Dispatch: The monitoring and regulation of an electrical or natural gas system to provide
coordinated operation; the sequence in which generating resources are called upon to generate
power to serve fluctuating load; the physical inclusion of a generator's output onto the
transmission grid by an authorized scheduling utility.
Distribution (electrical): The system of lines, transformers, and switches that connect the high-
voltage bulk transmission network and low-voltage customer load. The transport of electricity to
ultimate use points such as homes and businesses. The portion of an electric system that is
dedicated to delivering electric energy to an end user at relatively low voltages.
Distribution (gas): Mains, service connections, and equipment that carry or control the supply of
natural gas from the point of local supply to and including the sales meters.
Distributed generation: Electric power produced other than at a central station generating unit,
such as that using fuel cell technology or on-site small-scale generating equipment.
Electric utility: A corporation, person, agency, authority, or other legal entity that owns and/or
operates facilities for the generation, transmission, distribution, or sale of electric energy
primarily for use by the public. Facilities that qualify as co-generators or small power producers
under the Public Utility Regulatory Policies Act (PURPA) are not considered electric utilities.

2012 Idaho Energy Plan B-6
Electricity generation: The process of producing electric energy by transforming other forms of
energy such as steam, heat or falling water. Also, the amount of electric energy produced,
expressed in kilowatt-hours or megawatt-hours.
Electricity transmission congestion: Transmission congestion results when transmission lines
reach their maximum capacity so no additional power transactions can take place, regardless of
power needs. Attempting to operate a transmission system beyond its rated capacity is likely to
result in line faults and electrical fires, so this can never occur. The only ways the congestion can
be alleviated are to tune the system to increase its capacity, add new transmission infrastructure,
or decrease end-user demand for electricity.
Emissions allowance allocation: In the context of a cap and trade system, the amount of
greenhouse gas emissions that a regulated entity is allowed to lawfully emit per year. Each
allowance constitutes a right to emit usually one ton of a regulated emission.
Exempt Wholesale Generator (EWG): A class of generators defined by the Energy Policy Act of
1992 that includes the owners and/or operators of facilities used to generate electricity exclusively
for wholesale or that are leased to utilities.
Federal Energy Regulatory Commission (FERC): A quasi-independent regulatory agency within
the U.S. Department of Energy having jurisdiction over interstate electricity sales, wholesale
electric rates, hydroelectric licensing, natural gas transmission and related services, pricing, oil
pipeline rates, and gas pipeline certification.
Filed rate doctrine: The doctrine established under the Natural Gas Act that requires rates to be
on file with the Commission and that prevents increased rates from being imposed retroactively;
also known as ‚retroactive ratemaking.‛ This also applies to electric utilities.
Firm power: Electric power that is guaranteed by the supplier to be available during specified
times except when uncontrollable forces produce outages.
First Jurisdictional Delivery: A hybrid approach to regulating greenhouse gas emissions
generated in the electricity sector established by the Western Climate Initiative. First
jurisdictional deliveries are:
• All fossil-fuel generators located within the Western Climate Initiative jurisdiction;
• The first party to import electricity generated outside the Western Climate Initiative
region;
An importing deliverer could be an independent power producer, a retail provider, a power
marketer, or a power broker.
Force majeure: A common law concept borrowed from the French civil law meaning superior or
irresistible force that excuses a failure to perform. It has been defined by the U.S. Supreme Court
as a cause that is ‚beyond the control and without the fault or negligence‛ of the party excused.
Force majeure events also must not have been reasonably foreseeable (e.g., a blizzard in Houston
in January may be a force majeure event, but a January blizzard in Montana may not qualify).
Forecasting: The process of estimating or calculating electricity load or resource production
requirements at some point in the future.

2012 Idaho Energy Plan B-7
Franchise: A special privilege conferred by a government on an individual or corporation to
occupy and use the public rights of way and streets for benefit to the public at large. Public
utilities typically have exclusive franchises for utility service granted by state or local
governments.
Fuel-switching: Substituting one fuel for another based on price and availability. Large
industries often have the capability of using either oil or natural gas to fuel their operation and of
making the switch on short notice.
Generator nameplate capacity (installed): The maximum rated output of a generator or other
electric power production equipment under specific conditions designated by the manufacturer.
Installed generator nameplate capacity is commonly expressed in megawatts (MW) and is
usually indicated on a nameplate physically attached to the generator.
Geothermal power: Power generated from heat energy derived from hot rock, hot water or
steam below the earth's surface.
Gigawatt: A gigawatt (GW) is equal to one billion (109) watts.
Gigawatt-hour: A gigawatt-hour (GWh) is a unit of electrical energy that equals one thousand
megawatts of power used for one hour. One gigawatt-hour is equal to 1,000 megawatt-hours.
Green power: Term usually used to mean power produced from a renewable resource such as
wind, solar, geothermal, biomass, or small hydropower.
Greenhouse gas emission offset (Carbon offset): A means to a reduction, avoidance, or
sequestration of greenhouse gas emissions. Offsets are so named because they counteract or
offset greenhouse gases that would otherwise have been emitted into the atmosphere. (See also
Carbon offset.)
Greenhouse gas effect: A process by which the earth's temperature rises because certain gases in
the atmosphere, known as greenhouse gases, trap energy from the sun.
Greenhouse gases: Gases found within the earth's atmosphere including carbon dioxide (CO2),
methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC) and
sulfur hexafluoride (SF6) that trap energy from the sun and warm the earth. Some greenhouse
gases are emitted from the earth's natural processes; others from human activities, primarily the
combustion of fossil fuels.
Grid: The layout of the electrical transmission system or a synchronized transmission network.
Head: The vertical height of the water in a reservoir above the turbine. In general, the higher the
head, the greater the capability to generate electricity due to increased water pressure.
Heat rate: The measure of efficiency in converting input fuel to electricity. The lower the heat
rate, the more efficient the plant. The heat rate equals the BTU content of the fuel input divided
by the kilowatt–hours of power output. Lower heat rates are associated with more efficient
power generating plants.
High-voltage lines: Wires composed of conductive materials that are used for the bulk transfer of
electrical energy from generating power plants to substations located near to population (load)

2012 Idaho Energy Plan B-8
centers. Transmission lines, when interconnected with each other, become high voltage
transmission networks. In the U.S., these are typically referred to as "power grids" or sometimes
simply as "the grid." Electricity is transmitted at high voltages (110 kV or above) to reduce the
energy lost in long distance transmission. Power is usually transmitted through overhead power
lines. Underground power transmission has a significantly higher cost.
Hydroelectric plant: A plant in which the power turbine generators are driven by falling water.
Incremental energy cost: Cost incurred by producing or purchasing next available unit of energy
(gas, electricity, oil, coal, etc.).
Independent power producers: A non-utility power generating entity, defined by the 1978 Public
Utility Regulatory Policies Act, that typically sells the power it generates to electric utilities at
wholesale prices. (See also Exempt Wholesale Generator.)
Industrial bypass: A situation in which large industrial customers buy power directly from a
non-utility generator, bypassing the local utility system. Deregulation of generation and
transmission in some states has opened up the opportunity for large electricity users to purchase
services from a supplier other than the local retail utility. (See also Direct Access.)
Industrial customer: The industrial customer is generally defined as manufacturing,
construction, mining, agriculture, fishing, and forestry establishments. The utility may classify
industrial service using the Standard Industrial Classification codes or based on demand or
annual usage exceeding some specified limit. The limit may be set by the utility based on the rate
schedule of the utility.
Integrated energy plan: Includes consideration of all energy systems in Idaho and neighboring
states from which Idaho imports energy.
Integrated Gasification Combined Cycle (IGCC): Technology that combines both steam and gas
turbines to produce electricity. In this process, coal is converted to syngas, a mixture of hydrogen
and carbon monoxide. The syngas is then converted to electricity in a combined cycle power
block consisting of a gas turbine process and a steam turbine process that includes a heat
recovery steam generator. IGCC plants can achieve up to 45 percent efficiency, greater than 99
percent sulfur dioxide removal, and nitrogen oxide below 50 parts per million.
Integrated Resource Plan (IRP): A plan that utilities produce periodically for regulators and
customers to share their vision of how to meet the growing need for energy. These plans contain
a preferred portfolio of resource types and an action plan for acquiring specific resources to meet
the needs of customers including conservation measures. Specific resources will be acquired as
individual projects or purchases and, when appropriate, through a formal request for proposals
(RFP) process.
Interconnection: A link between power systems enabling them to draw on one another's reserves
in times of need to take advantage of energy cost differentials resulting from such facts as load
diversity, seasonal conditions, time-zone differences, and shared investments in larger generating
units.

2012 Idaho Energy Plan B-9
Interstate pipeline: A natural gas pipeline company that is engaged in the transportation of
natural gas across state boundaries and is therefore subject to FERC jurisdiction and/or FERC
regulation under the Natural Gas Act.
Investor owned utility (IOU): A utility that is a privately owned, often publicly traded
corporation whose operations are regulated by federal and state entities.
Joint use facilities: Facilities that are used in common by two or more entities. For example, a
utility pole or structure may contain wires and equipment for electrical power service and wires
and equipment for telephone/cable TV service.
Kilowatt (kW): A unit of electrical power or capacity equal to one thousand watts.
Kilowatt-hour (kWh): A unit of electrical energy that is equivalent to one kilowatt of power used
for one hour. One kilowatt-hour is equal to 1,000 watt-hours. An average household will use
between 800 and 1,300 kWh per month, depending upon geographical area.
Leakage: Within the context of a cap and trade system with a limited geographic scope, a term to
describe the potential for greenhouse gas emitters to move outside the geographic area of the cap
to avoid compliance with the regulation.
Load: The amount of electric power delivered or required at any specific point or points on a
system. The requirement originates at the energy-consuming equipment of the consumers. The
load of an electric utility system is affected by many factors and changes on a daily, seasonal and
annual basis, typically following a general pattern. Electric system load is usually measured in
megawatts (MW). It is synonymous with demand.
Load-based cap: A cap on the amount of emissions from electricity based on total kilowatt-hour
sales, regardless of the carbon content of the resources or where it was generated.
Load management: The management of load patterns in order to better utilize the facilities of the
system. Generally, load management attempts to shift load from peak use periods to other
periods of the day or year.
Load shedding: Usually an agreement arranged ahead of time to reduce electric system demand
by dropping certain loads to keep others. For example, in exchange for cheaper power, an
industrial customer may sign a contract agreeing to have its power interrupted, if needed, during
peak demand periods.
Local distribution company (LDC): A company that obtains the major portion of its revenues
from the operations of a retail distribution system for the delivery of electricity or gas for ultimate
consumption.
Market-based price: The price of power on the open market.
Marketers: Organizations or individuals who take title to power in anticipation of selling it at a
higher price to a buyer. Marketers are subject to FERC regulation.
Megawatt (MW): A unit of electrical power equal to 1 million watts or 1,000 kilowatts. Plant
power output is typically measured in megawatts. (See also capacity (electric).)

2012 Idaho Energy Plan B-10
Megawatt-hour (MWh): One million watt-hours of electric energy. A unit of electrical energy
that equals one megawatt of power used for one hour.
Metering: Use of devices that measure and register the amount and/or direction of energy
quantities relative to time.
Multi-state Process (MSP): A regulatory forum for exploring issues pertaining to the PacifiCorp
Inter-Jurisdictional Cost Allocation Protocol (Revised Protocol). The objectives of the Revised
Protocol include:
 Allocating PacifiCorp's costs among its jurisdictional states in an equitable
manner;
 Ensuring PacifiCorp plans and operates its generation and transmission system
on a six state integrated basis in a matter that achieves a least-cost/risk-balanced
resource portfolio for its customers;
 Allowing each state to independently establish its ratemaking policies;
 Providing PacifiCorp the opportunity to recover 100 percent of its prudently
incurred costs

Municipal utility: A utility owned and operated by a municipality or group of municipalities.

National Association of Regulatory Utility Commissioners (NARUC): A professional trade
association, headquartered in Washington, D.C., composed of members of state and federal
regulatory bodies that have regulatory authority over utilities.
NERC (North American Electric Reliability Corporation): An organization subject to oversight
by the Federal Energy Regulatory Commission and governmental authorities in Canada whose
mission is to ensure the reliability of the bulk power system in North America. To achieve that,
NERC develops and enforces reliability standards; assesses power adequacy annually via 10 year
and seasonal forecasts; monitors the bulk power system; evaluates users, owners, and operators
for preparedness; and educates, trains, and certifies electric industry personnel.
Net metering: A method of crediting customers for electricity that they generate on site in excess
of their own electricity consumption.
Network: An interconnected system of electrical transmission lines, transformers, switches, and
other equipment connected together in such a way as to provide reliable transmission of electrical
power from multiple generators to multiple load centers.
Normalization: The accounting method used to ensure that the sum total of taxes payable for an
asset under an accelerated method of depreciation is congruent with what would be the sum total
of taxes payable for that same asset under a straight-line method of depreciation. Normalization
was instituted by Congress in 1969 to prevent the tax benefits of deferred payables from being
directly passed on to customers instead of the proper governing authorities.
Nuclear power plant: A facility in which nuclear fission produces heat that is used to generate
electricity.
Obligation to serve: In exchange for the regulated monopoly status of a utility for a designated
service territory with the opportunity to earn an adequate rate of return, comes the obligation to

2012 Idaho Energy Plan B-11
provide electrical service to all customers who seek that service at fair and reasonable prices. This
has been part of what the utility commits to under the ‚regulatory compact‛ and also includes
the requirement to provide a substantial operating reserve capacity in the electrical system. (See
also Regulatory compact.)
Off peak: The period during a day, week, month, or year when the load being delivered by a
natural gas or electric system is not at or near the maximum volume delivered by that system for
a similar period of time (night vs. day, Sunday vs. Tuesday).
On peak: The period during a day, week, month, or year when the load is at or near the
maximum volume.
Open access: The term applied to the evolving access to the transmission system for all
generators and wholesale customers. This is also the use of a utility's transmission and
distribution facilities on a common-carrier basis at cost-based rates.
Outage: Periods, both planned and unexpected, during which power system facilities (generating
unit, transmission line, or other facilities) cease to provide generation, transmission, or the
distribution of power.
PCBs: Synthetic chemicals (polychlorinated biphenyls), manufactured from 1929 to 1977, found
in electric equipment, such as voltage regulators and switches, and used to cool electrical
capacitors and transformers. The manufacture of PCBs was banned by the U.S. Congress in 1979
and by the Stockholm Convention on Persistent Organic Pollutants in 2001.
Peak demand: The maximum load during a specified period of time.
Peak load plant or peaker unit: A plant usually housing low-efficiency, quick response steam
units, gas turbines, diesels, or pumped-storage hydroelectric equipment normally used during
the maximum load periods. Peakers are characterized by quick start times and generally high
operating costs, but low capital costs.
Photovoltaic (solar) conversion: The process of converting the sun's light energy directly into
electric energy through the use of photovoltaic cells.
Pipeline system: A collection of pipeline facilities used to transport natural gas from source of
supply to burner tip, including gathering, transmission or distribution lines, treating or
processing plants, compressor stations, and related facilities.
Point of delivery: The physical point of connection between the transmission provider and a
utility. Power is metered here to determine the cost of the transmission service.
Point of regulation: Refers to which entities are responsible for complying with regulations.
Within the context of a cap and trade greenhouse gas emissions system, the point of regulation
may occur upstream at the source of fuels or other greenhouse gas-containing substances;
downstream with the distributors of fuel or electricity; or through a hybrid approach.
Point to point: Transmission service from one discrete point to another discrete point.
Power plant: A plant that converts mechanical energy into electric energy. The power is
produced from raw material such as gas, coal, nuclear, or other fuel technologies.

2012 Idaho Energy Plan B-12
Preference customers: Publicly owned utilities and not-for-profit cooperatives, which by law
have preference over investor owned systems and industrial customers for the purchase of power
from federal power marketers, such as the Bonneville Power Administration.
Production Tax Credit (PTC): Production tax credits support the introduction of renewables by
allowing companies which invest in renewables to write off this investment against other
investments they make. A PTC can be used as the central mechanism for the support of
renewables as part of a national or regional mechanism, or it can be used in support of other
mechanisms, such as a quota mechanism. Production tax credits have been supplied at the
federal level.
Purchase Power Agreement (PPA): Typical name for bilateral wholesale or retail power contract.
Qualifying facility (QF): A designation created by PURPA for non-utility power producers that
meet certain operating, efficiency and fuel-use standards set by FERC. To be recognized as a
qualifying facility under PURPA, the facility must be a small power production facility whose
primary energy source is renewable or a cogeneration facility that must produce electric energy
and another form of useful thermal energy, such as steam or heat, in a way that is more efficient
than the separate production of both forms of energy. It must also meet certain ownership,
operating, and efficiency criteria established by FERC.
Rate base: The value of property upon which a utility is given the opportunity to earn a specified
rate of return as established by regulatory authority. The rate base generally represents the value
of property used by the utility in providing service and may be calculated by any one or a
combination of the following accounting methods: fair value, prudent investment, reproduction
cost, or original cost. The rate base may include a working capital allowance covering such
elements as cash, working capital, materials and supplies, prepayments, minimum bank
balances, and tax offsets. The rate base may be adjusted by deductions for accumulated provision
for depreciation, contributions in aid of construction, accumulated deferred income taxes, and
accumulated deferred investment tax credits.
Rate design: The development of electricity prices for various customer classes to meet revenue
requirements dictated by operating needs and costs within current regulatory and legislative
policy goals.
Rate of return: The allowed rate of return is the percentage determined by the jurisdictional state
or federal commission based on standards including the cost of capital in other sectors with
comparable risk. The achieved rate of return is the actual result the utility obtained over any
given period. Investor owned utilities are not guaranteed, but given the opportunity, to earn a
profit.
Rate schedule: The rates, charges and provisions under which service is supplied to a designated
class of customers.
REA: Rural Electrification Administration; currently called Rural Utility Service.
Regional transmission organization/group (RTO/RTG): A proposal advanced by FERC to
establish regional groups to expedite the coordination of wholesale wheeling. The group is
voluntary in each region and may include transmission system owners, wholesale purchasers,
and independent power generators.

2012 Idaho Energy Plan B-13
Regulatory compact: A traditional covenant between customers in a state and investor owned
utilities (IOUs). In exchange for the obligation to provide service to all customers in a defined
service territory, an IOU is given a territorial monopoly on service and allowed to earn a limited
return set by state regulators. The commission enforces the terms of the regulatory compact. (See
also Obligation to serve.)
Reliability: The ability to meet demand without interruption. The degree of reliability may be
measured by the frequency, duration, and magnitude of adverse effects on consumer service.
Renewable energy credit/green tag: Tradable certificate confirming 1 megawatt-hour of
electricity generated by an eligible renewable resource that is tracked and verified by an
authorizing entity; includes all of the environmental attributes associated with that 1 megawatt-
hour unit of electricity production.
Renewable Portfolio Standard (RPS): A policy that establishes a percentage of electric retail
sales that must be derived from eligible renewable resources. Another common name for the
same concept is renewable electricity standard (RES).
Renewable resource: An energy source that is continuously or cyclically renewed by nature,
including solar, wind, hydroelectric, geothermal, biomass, or similar sources of energy.
Request for Proposal (RFP): Request For Proposal is a written solicitation that conveys to
vendors a requirement for materials or services that the purchaser intends to buy. An RFP is a
primary means of inviting a bid or proposal from prospective suppliers. The RFP process allows
for the equitable and simultaneous comparison and analysis of competing businesses' product
and service offerings.
Reserve capacity: Capacity in excess of that required to carry peak load, available to meet
unanticipated demands for power or to generate power in the event of loss of generation.
Residential consumer: A consumer residing at a dwelling served by the company, and using
services for domestic purposes. This does not include consumers residing in temporary
accommodations, such as hotels, camps, lodges, and clubs.
Restructuring: The reconfiguration of the vertically integrated electric utility. Restructuring
usually refers to separation of the various utility functions (such as power generation and
transmission) into separate functions, typically to offer more competitive choices to customers.
(See also Deregulation.)
Retail: Sales covering electrical energy supplied for end-use residential, commercial, and
industrial end-use purposes. Agriculture and street lighting are also included in this category.
Power sold at retail is not resold by the purchaser to another customer.
Retail competition: A system under which more than one electricity provider competes to sell to
retail customers and retail customers are allowed to buy from different providers. (See also Direct
Access.)
Retail wheeling: The sale of electricity by a utility or other supplier to a customer in another
utility's retail service territory. Refers to the use of the local utility's transmission and distribution
lines to deliver the power from a wholesale supplier to a retail customer by a third party.

2012 Idaho Energy Plan B-14
Return on equity: Compensation for the investment of capital. Regulated public utilities are
allowed to charge rates that provide them an opportunity - but not a guarantee - to earn a
reasonable return on their equity invested.
Revenue requirement: The amount of funds (revenue) a utility must take in to cover the sum of
its estimated operation and maintenance expenses, debt service, taxes, and allowed rate of return.
Revenue requirement is often defined as: Revenue requirement = Operating expenses + depreciation
expense + income taxes + (rate of return x rate base)
Rolling blackout: Shutting off power to groups or blocks of customers in a controlled and
preplanned manner to reduce system demand. Interruptions happen in intervals and between
blocks of customers so all customers share in the efforts to reduce demand.
Rural electric cooperative: See Cooperative electric utility.
RUS: Rural Utility Service; formerly called Rural Electrification Administration.
Sales for resale: Energy supplied at wholesale to other utilities, cooperatives, municipalities, and
federal and state agencies for resale to ultimate consumers. May be subject to FERC regulation.
Scheduled outage: The shutdown of a generating unit, transmission line, or other facility, for
inspection or maintenance in accordance with an advance schedule.
Scheduling: Operating a power system to balance generation and loads; managing the
accounting, billing, and information reporting for such operations.
Service area: The territory in which a utility system is required or has the right to supply service
to ultimate customers.
Shaping, or load shaping: The scheduling and operation of generating resources to meet
changing load levels. Load shaping on a hydroelectric system usually involves the adjustment of
water releases from reservoirs so that generation and load are continuously in balance.
Smart grid: Smart grid is a concept. At the moment that concept is undeveloped. The basic
concept of smart grid is to add monitoring, analysis, control, and communication capabilities to
the national electrical delivery system to maximize the throughput of the system. In theory, the
smart grid concept might allow utilities to move electricity around the system as efficiently and
economically as possible. It might also allow the homeowner and business to use electricity as
economically as possible. Consumers will have the choice and flexibility to manage electrical use
while minimizing bills. Smart grid hopes to build on many of the technologies already used by
electric utilities. It also adds communication and control capabilities with the idea of optimizing
the operation of the entire electrical grid. To reduce this concept to a single sentence, one might
describe smart grid as overlaying a communication network on top of the power grid.
Solar generation: The use of radiation from the sun to substitute for electric power or natural gas
heating.
Spot market: Commodity transactions in which the transaction commencement is near term (e.g.,
within 10 days) and the contract duration is relatively short (e.g., 30 days).

2012 Idaho Energy Plan B-15
Spot purchases: A short-term single shipment sale of a commodity, including electricity or gas,
purchased for delivery generally on an interruptible or best efforts basis.
Standards of conduct: Requirements under FERC's marketing affiliate rule that prohibit
discrimination in favor of the utility's own marketing affiliates and that require utilities to submit
reports detailing compliance with the rules.
Substation: Equipment that switches, changes, or regulates electric voltage. An electric power
station that serves as a control and transfer point on an electrical transmission system.
Substations route and control electrical power flow and transformer voltage levels and serve as
delivery points to industrial customers.
Tariff: A document filed by a regulated entity with either a federal or state commission, listing
the rates the regulated entity will charge to provide service to its customers as well as the terms
and conditions that it will follow in providing service.
Test period: In a rate case, a test period is used to determine the cost of service upon which the
rates will be based. A test period consists of a base period of 12 consecutive months of actual
operational experience, adjusted for changes in revenues and costs that are known and are
measurable with reasonable accuracy at the time of the rate filing.
Thermal generation: The production of electricity from plants that convert heat energy into
electrical energy. The heat in thermal plants can be produced from a number of sources such as
coal, oil, or natural gas.
Transmission: The network of high-voltage lines, transformers and switches used to move
electrical power from generators to the distribution system (loads). This network is also utilized
to interconnect different utility systems and independent power producers together into a
synchronized network.
Transmission grid: An interconnected system of electric transmission lines and associated
equipment for the transfer of electric energy in bulk between points of supply and points of
demand.
Turbine: The part of a generating unit usually consisting of a series of curved vanes or blades on
a central spindle that is spun by the force of water, steam, or heat to drive an electric generator.
Turbines convert the kinetic energy of such fluids to mechanical energy through the principles of
impulse and reaction or a measure of the two.
Used and useful: The traditional test for whether a utility asset may be included in rate base.
Volt: A unit of measurement of electromotive force or electrical potential. It is equivalent to the
force required to produce a current of one ampere through a resistance of one ohm. Typical
transmission level voltages are 115 kV, 230 kV, and 500 kV.
Watt: A measure of real power production or usage equal to one joule per second.
Watt-hour (Wh): An electrical energy unit of measure equal to one watt of power supplied to, or
taken from, an electric circuit steadily for one hour.

2012 Idaho Energy Plan B-16
Western Climate Initiative: A collaboration launched in February 2007, by the governors of
Arizona, California, New Mexico, Oregon, and Washington to develop regional strategies to
address climate change. Since February 2007, the group has expanded to include Utah, Montana,
British Columbia, Manitoba, and Quebec. The group has established a goal to reduce overall
emissions within its member states by 15 percent below 2005 levels by 2020.
Western Electricity Coordinating Council (WECC): A group of utilities banded together to
promote reliability by coordinating the power supply and transmission in the West.
Wheeling: The use of the transmission facilities of one system to transmit power for another
system. Wheeling can apply to either wholesale or retail service. (See also Retail wheeling.)
Wholesale power market: The purchase and sale of electricity from generators to resellers (who
sell to retail customers or to wholesale customers) along with the ancillary services needed to
maintain reliability and power quality at the transmission level.
Wholesale sales: Energy supplied to other electric utilities, cooperatives, municipals, federal and
state electric agencies, and power marketers for resale to other wholesale customers or ultimate
consumers.

2012 Idaho Energy Plan C-1
Appendix C. References
1. House Concurrent Resolution 013 - http://legislature.idaho.gov/legislation/2007/HCR013.html
2. Energy Information Administration SEDS, 2009 State Energy Data System Idaho (139.9 TBTUs
production, 509 TBTUs consumption)
3. Ibid.
4. 2004 savings of 16.1MWh for all three utilities; 2010 savings of 196.8 MWh for all three
utilities. Information from their IRPs:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IR
P.pdf and
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
and
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource
_Plan/2011IRP/2011IRP-MainDocFinal_Vol1-FINAL.pdf
5. House Concurrent Resolution 062 -
http://www.legislature.idaho.gov/legislation/2010/HCR062.pdf
6. Idaho Legislature, 2007 Idaho Energy Plan, Idaho Legislature, Energy, Environment and
Technology Interim Committee, March 11, 2007 -
http://www.legislature.idaho.gov/sessioninfo/2007/energy_plan_0126.pdf
7. Idaho Office of Energy Resources and Idaho Public Utilities Commission, Report to the Idaho
State Legislature, December 2009, December 11, 2009.
8. Snake River Alliance Idaho Energy Plan Review:
http://www.snakeriveralliance.org/Portals/2/documents/Idaho%20Energy%20Plan%20Review
_Snake%20River%20Alliance_July%202011_2.pdf
9. Energy Information Administration (EIA) SEDS, State Energy Data System Idaho, Table CT2.
Primary Energy Consumption Estimates - (139.9 TBTUs production, 509 TBTUs consumption)
- http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
10. AAA Daily Fuel Gauge Report, http://fuelgaugereport.aaa.com/
11. Total US Fuel Taxes by State by GasBuddy.com -
http://www.idahogasprices.com/tax_info.aspx
12. American Petroleum Institute - http://www.api.org/aboutoilgas/gasoline/ and Total US Fuel
Taxes by State by GasBuddy.com http://www.idahogasprices.com/USA_Tax_Map.aspx
13. Pike Research, Electric Vehicle Market Forecasts, 3Q 2011:
http://www.pikeresearch.com/research/smart-transportation/electric-vehicles
14. Federal Reserve Bank of St. Louis Economic Research ‚Total Gross Domestic Product by State
for Idaho - http://research.stlouisfed.org/fred2/series/IDNGSP
15. Federal Reserve Bank of St. Louis Economic Research ‚Gross Domestic Product in United
States‛ - http://research.stlouisfed.org/fred2/series/USARGDPQDSNAQ
16. U.S. Energy Information Administration, Energy Information Administration Table CT2.
Primary Energy Consumption Estimates -
www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
17. U.S. Energy Information Administration, State Energy Data System, Gasoline and Consumer
Price Index data - http://www.eia.gov/state/seds/seds-data-complete.cfm#ranking
18. SNL Energy Financial Focus, May 23, 2011, page 16.
19. U.S. Energy Information Administration, www.eia.gov/petroleum/data.cfm#prices & U.S.
Bureau of Labor Statistics

2012 Idaho Energy Plan C-2
20. New Projections for Oil and Natural Gas, Jason Stevens, Morningstar Stock Investor, July
2011, page 21.
21. U.S. Energy Information Administration, www.eia.gov/electricity/data.cfm#sales & U.S.
Bureau of Labor Statistics
22. U.S. Energy Information Administration, Table PT2. Energy Production Estimates -
http://www.eia.gov/state/seds/sep_prod/pdf/PT2_ID.pdf
23. U.S. Energy Information Administration, Table CT2. Primary Energy Consumption Estimates
- www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
24. Energy Information Administration SEDS, State Energy Data System Idaho (139.9 TBTUs
production, 509 TBTUs consumption), Average Retail Price of Electricity to Ultimate
Consumers, Table 5.6.B - http://www.eia.gov/electricity/monthly/index.cfm
25. Idaho Consumer-Owned Utilities Association webpage: http://www.icua.coop/
26. Avista’s 2011 Integrated Resource Plan –
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IR
P.pdf
27. Idaho Power Company website:
http://www.idahopower.com/AboutUs/CompanyInformation/Facts/default.cfm
28. Rocky Mountain Power website: http://www.rockymountainpower.net/about/cf.html
29. MidAmerican Energy website:
http://www.midamericanenergy.com/newsroom/aspx/facts9.aspx
30. Idaho Consumer-Owned Utilities Association: http://www.icua.coop/
31. Ibid.
32. Bonneville Power Administration website:
http://www.bpa.gov/corporate/about_BPA/Facts/FactDocs/BPA_Facts_2010.pdf
33. 2010 Pacific Northwest Loads and Resources Study (2010 BPA White Book):
http://www.bpa.gov/power/pgp/whitebook/2010/
34. Bonneville Power Administration website:
http://www.bpa.gov/corporate/about_BPA/Facts/FactDocs/BPA_Facts_2010.pdf
35. Electric Power Annual 2009 - Data Tables Format 1990 - 2009 : Net Generation by State by
Type of Producer by Energy Source (EIA-906, EIA-920, and EIA-923)
36. North American Electric Reliability Corporation website: http://www.nerc.com/
37. Western Electricity Coordinating Council website:
http://www.wecc.biz/About/Pages/default.aspx
38. Federal Energy Regulatory Commission website: http://www.ferc.gov/about/ferc-does.asp
39. Energy Information Administration, Natural Gas, Natural Gas Pipelines in the Western
Region,
http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/western.html
40. Idaho Public Utilities Commission Annual Report 2010 Idaho Natural Gas Utilities,
http://www.puc.state.id.us/ar2010/gas.pdf
41. Avista Utilities Natural Gas 2009 IRP:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2009%20Natural%20G
as%20IRP-FINAL.pdf
42. Ibid., page 3.10
43. Intermountain Gas website - http://www.intgas.com/aboutigc/aboutigc.html
44. Intermountain Gas 2010 IRP:
http://www.puc.idaho.gov/internet/cases/gas/INT/INTG1004/201009012010%20IRP.PDF
45. Questar website - http://www.questargas.com/AreaMap/SrviceMap.php

2012 Idaho Energy Plan C-3
46. Investor owned Utilities Information: Each utilities FERC Form 1 (http://www.ferc.gov/docs-
filing/forms.asp) and http://www.eia.gov/cneaf/electricity/page/eia861.html (for percent of
Idaho load served); for BPA
http://www.bpa.gov/power/pgp/whitebook/2010/WhiteBook2010_SummaryDocument_Final.
pdf
47. Energy Information Administration SEDS, State Energy Data System Idaho (139.9 TBTUs
production, 509 TBTUs consumption)
48. Idaho Strategic Energy Alliance Hydropower Task Force Report, May 2009, Appendix F,
http://www.energy.idaho.gov/energyalliance/d/Hydro%20Packet.pdf
49. ‚U.S. Hydropower Resource Assessment for Idaho,‛ Alison M. Conner, et al., Published
August 1998, Idaho National Engineering and Environmental Laboratory,
http://hydropower.inl.gov/resourceassessment/pdfs/states/id.pdf
50. Idaho Strategic Energy Alliance Hydropower Task Force Report,
http://www.energy.idaho.gov/energyalliance/d/Hydro%20Packet.pdf and Idaho National
Laboratory (INL) ‚U.S. Hydropower Resource Assessment for Idaho‛, August 1998,
http://hydropower.inl.gov/resourceassessment/pdfs/states/id.pdf
51. Energy Information Administration, 2010 calendar year statistics from EIA-923 January -
December
52. American Wind Energy Association (AWEA), ‚U.S. Wind IndustrySecond Quarter Market
Report August 2011‛, http://www.awea.org/learnabout/publications/reports/upload/2Q-2011-
Public-Market-Report.pdf
53. Renewable Northwest Project, http://rnp.org/project_map
54. Ibid.
55. Energy Information Administration, 2010 calendar year statistics from EIA-923 January –
December; 2011 statistic is estimated based on the growth in nameplate capacity referenced
from Renewable Northwest Project information at http://rnp.org/project_map
56. Wind Task Force Initial Mandate Response to the Idaho Strategic Energy Alliance, February
2009, page 7.
57. American Wind Energy Association (AWEA), Existing and proposed wind projects for Idaho -
http://awea.org/learnabout/publications/upload/1Q-11-Idaho.pdf
58. The Northwest Power Planning Council Sixth Northwest Conservation and Electric Power
Plan, Appendix D: Wholesale Electricity Price Forecast, page D-8,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan_Appendix_D.pdf
59. Western Governors’ Association, Clean and Diversified Energy Initiative, Geothermal Task
Force Report, January 2006.
60. Idaho Power website:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
(Page 33)
61. Idaho Strategic Energy Alliance Geothermal Task Force Report,
http://www.energy.idaho.gov/energyalliance/d/Geothermal%20Packet.pdf
62. Ibid.
63. Prepared by the Forestry/Biomass and Biofuels Task Forces, Idaho Strategic Energy Alliance,
http://www.energy.idaho.gov/energyalliance/taskforce.htm
64. Data from ‚Wood Bioenergy: Homegrown Baseload Energy for Idaho,‛ Forestry/Biomass
Task Force Report, Idaho Strategic Energy Alliance.
http://www.energy.idaho.gov/energyalliance/d/forest_packet.pdf
65. Energy Information Administration. State Energy Data System (SEDS). Table CT2. Primary
Energy Consumption Estimates, Selected Years, 1960-2009, Idaho. U.S. Dept. of Energy,

2012 Idaho Energy Plan C-4
Washington, D.C.
http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
66. U.S. Census Bureau. Idaho Selected Housing Characteristics.
http://factfinder.census.gov/servlet/ADPTable?_bm=y&-geo_id=04000US16&-
qr_name=ACS_2009_5YR_G00_DP5YR4&-ds_name=ACS_2009_5YR_G00_&-_lang=en&-
_sse=on
67. ‚Idaho Forest Restoration Partnership: A Network of Collaboration‛ website.
http://www.idahoforestpartners.org/main.html
68. Biogas Generation and Use in Idaho, Biogas Task Force Report, Idaho Strategic Energy Alliance.
http://www.energy.idaho.gov/energyalliance/d/biogas_resources_report.pdf
69. Idaho Biofuels Task Force Report, Idaho Strategic Energy Alliance,
http://www.energy.idaho.gov/energyalliance/d/biofuels_report.pdf
70. Renewable Fuels Standard (RFS), page 2 in, Energy Independence and Security Act of 2007: A
Summary of Major Provisions. CRS Report for Congress, Order Code RL34294, Congressional
Research Service, Washington, D.C. http://energy.senate.gov/public/_files/RL342941.pdf
71. Powering the Next Generation of Flight. Sustainable Aviation Fuels Northwest, 2011 Report,
produced by Climate Solutions, Kirkland, WA. 131 pp. An estimate of total potential jobs in a
robust sustainable industry producing biofuel for jet aircraft is not provided. Report is
available online at http://www.safnw.com/
72. World Nuclear Association, ‚Nuclear Power in the USA‛, September 19, 2011 -
http://www.world-nuclear.org/info/inf41.html
73. Nuclear Energy Institute, http://www.nei.org/keyissues/safetyandsecurity/
74. Nuclear Energy Institute, ‚U.S. Nuclear Power Plants‛ -
http://www.nei.org/resourcesandstats/nuclear_statistics/usnuclearpowerplants/
75. World Nuclear Association, ‚Nuclear Power in the USA‛, September 19, 2011 -
http://www.world-nuclear.org/info/inf41.html
76. United States Nuclear Regulatory Commission, http://www.nrc.gov/reactors.html
77. Nuclear Power in a Post-Fukushima World‛, Schneider et al, WorldWatch Institute (2011),
http://www.worldwatch.org/system/files/WorldNuclearIndustryStatusReport2011_%20FINA
L.pdf
78. ‚Projected Costs of Generating Electricity‛, International Energy Agency (2010),
http://www.iea.org/press/pressdetail.asp?PRESS_REL_ID=298
79. ABC News / Washington Post Poll, April 14-17, 2011, http://www.washingtonpost.com/wp-
srv/politics/polls/postpoll_04172011.html
80. www.langerresearch.com: http://abcnews.go.com/Politics/nuclear-power-opposition-grows-
japan-earthquake-abc-news/story?id=13412262
81. ‚Boise State Research Details Positive Economic Impacts from INL Operations‛, December 9,
2010, Boise State University Update, http://news.boisestate.edu/update/2010/12/09/boise-state-
research-details-positive-economic-impacts-from-idaho-national-laboratory-operations/
82. Associated Press, ‚Areva Wins Federal License for Idaho Uranium Plant. Idaho Falls, Idaho,‛
October 12, 2011, http://moneywatch.bnet.com/investing/news/french-firm-wins-license-for-
idaho-uranium-plant/6314091/
83. ‚AREVA Awarded DOE Loan Guarantee for Idaho Enrichment Facility.‛ (2010, May 21).
Retrieved October 12, 2011, from AREVA: http://www.areva.com/EN/news-8390/areva-
awarded-doe-loan-guarantee-for-idaho-enrichment-facility.html
84. Solar Generation Feasibility Study for Southwest Idaho, Black & Beach, August 2008; Idaho
Power Company’s Draft 2009 Integrated Resource Plan

2012 Idaho Energy Plan C-5
85. Idaho Office of Energy Resources: http://www.energy.idaho.gov/stimulus/solar_program.htm
and http://www.idahostatesman.com/2011/01/14/1488700/nine-idaho-schools-get-solar-
power.html
86. Idaho Strategic Energy Alliance Solar Task Force Report, 2010,
http://www.energy.idaho.gov/energyalliance/d/solar_report.pdf
87. Northwest Power Planning Council 6th Power Plan, February 2010,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
88. Northwest Power and Conservation Council. (2010). Sixth Northwest Conservation and Electric
Power Plan (No. Council Document 2010-09). Retrieved from
http://www.nwcouncil.org/energy/powerplan/6/default.htm
89. ACEEE Energy Efficiency Rankings by State, http://www.aceee.org/node/820
90. Idaho Strategic Energy Alliance Energy Efficiency and Conservation Task Force Report,
http://www.energy.idaho.gov/energyalliance/taskforce.htm
91. Office of Energy Resources JFAC Presentation, February 2, 2011 -
http://legislature.idaho.gov/budget/JFAC/presentations/OER.2011-02-
02.pdf#xml=http://legislature.search.idaho.gov/isysquery/ce0d72c5-d302-4a11-80e3-
3aae1665798f/13/hilite/
92. Boise State University Campus News, ‚Boise State, CEERI Receive $1.5 Million for
Manufacturing Efficiency Training,‛ September 15, 2011,
http://news.boisestate.edu/update/2011/09/15/boise-state-ceeri-receive-1-5-million-for-
manufacturing-efficiency-training/
93. Boise State University Campus News, ‚Energy Policy Institute to Research Solar Siting
Through $2.8 Million Grant‛, September 6, 2011,
http://news.boisestate.edu/update/2011/09/06/energy-policy-institute-to-research-solar-siting-
through-2-8-million-grant/
94. Boise State University Campus News, ‚Boise State Awarded $4.9 Million Grant, Named Lead
in Consortium to Establish National Geothermal Data System‛, October 5, 2009,
http://news.boisestate.edu/update/2009/10/05/ngds/
95. Energy Information Administration ‚Average Electric Energy Price, State Historical Tables‛
http://www.eia.doe.gov/cneaf/electricity/epa/average_price_state.xls: Total Electricity Price
96. Energy Information Administration, Natural Gas Prices,
http://www.eia.gov/dnav/ng/NG_PRI_SUM_A_EPG0_PRS_DMCF_A.htm
97. Energy Information Administration, Retail Gasoline Prices,
http://www.eia.gov/dnav/pet/pet_pri_allmg_a_EPM0_PTC_Dpgal_m.htm and American
Petroleum Institute Fuel Tax Tables -
http://www.api.org/statistics/fueltaxes/upload/July2011_gasoline_diesel_summary.pdf
98. Energy Information Administration, ‚Energy Explained‛,
http://www.eia.gov/energyexplained/index.cfm?page=electricity_in_the_united_states
99. Energy Information Administration, ‚Annual Energy Outlook 2011: Executive Summary‛ -
http://www.eia.gov/forecasts/aeo/chapter_executive_summary.cfm
100. Energy Information Administration, ‚Table E15. Energy Prices and Expenditures, Ranked by
State, 2009‛ - http://www.eia.gov/state/seds/sep_sum/html/pdf/rank_pr.pdf
101. Energy Information Administration, Table E15. Energy Prices and Expenditures, Ranked by
State, 2009- http://www.eia.gov/state/seds/sep_sum/html/pdf/rank_pr.pdf
102. U.S. Census Bureau, State Median Income -
http://www.census.gov/hhes/www/income/data/statemedian/index.html (Table H8) 2009
Based upon per capita energy expenditure of $3,172.08 (http://energy.gov/maps/2009-energy-

2012 Idaho Energy Plan C-6
expenditure-person) times the 2010 population of 1,567,582
(http://quickfacts.census.gov/qfd/states/16000.html)
103. Expenditures from EIA, State Energy Data System Table ET3 Residential Sector Energy Price
and Expenditures Estimate -
http://205.254.135.24/state/seds/hf.jsp?incfile=sep_prices/res/pr_res_ID.html&mstate=Idaho;
Total Households from U.S. Census Bureau Selected Social Characteristics in Idaho 2009 -
http://factfinder.census.gov/servlet/ADPTable?_bm=y&-context=adp&-
qr_name=ACS_2009_1YR_G00_DP2&-ds_name=ACS_2009_1YR_G00_&-tree_id=309&-
_caller=geoselect&-geo_id=04000US16&-format=&-_lang=en; fuel expenditures from EIA State
Energy Data System Table ET6 Transportation Sector Energy Price and Expenditures Estimate
- http://205.254.135.24/state/seds/hf.jsp?incfile=sep_prices/tra/pr_tra_ID.html&mstate=Idaho
104. U.S. Census Bureau State Median Income -
http://www.census.gov/hhes/www/income/data/statemedian/index.html (Table H8) 2009
105. ISEA Hydropower Task Force Report, May 2009 -
http://www.energy.idaho.gov/energyalliance/d/Hydro%20Packet.pdf
106. Federal Energy Regulatory Commission ‚What is a Qualifying Facility?‛ -
http://www.ferc.gov/industries/electric/gen-info/qual-fac/what-is.asp and U.S. Forest Service
Directives - http://www.fs.fed.us/im/directives/fsh/2709.15/05.txt
107. Idaho Public Utilities Commission Case No. GNR-E-10-04, order number 32176.;
http://www.puc.idaho.gov/internet/cases/summary/GNRE1004.html
108. Northwest Power Planning Council 6th Power Plan, February 2010 -
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
109. Ibid.
110. U.S. Department of Energy, ‚Energy Incentive Programs: Idaho‛, August 2011 -
http://www1.eere.energy.gov/femp/financing/eip_id.html
111. Office of Energy Resources JFAC Presentation, February 2, 2011 -
http://legislature.idaho.gov/budget/JFAC/presentations/OER.2011-02-
02.pdf#xml=http://legislature.search.idaho.gov/isysquery/ce0d72c5-d302-4a11-80e3-
3aae1665798f/13/hilite/
112. Center for Advanced Energy Studies webpage:
https://inlportal.inl.gov/portal/server.pt/community/caes_home/281/energy_efficiency
113. Idaho Falls Power website : http://www.idahofallsidaho.gov/faq/encourage-conservation.html
114. Idaho Power 2010 Annual Report: http://www.idacorpinc.com/pdfs/annualreps/ar2010.pdf
115. International Institute for Energy Efficiency, ‚PacifiCorp Large Commercial Energy
FinAnswer Profile #46‛ -
http://www.iiec.org/index.php?option=com_content&view=article&id=339&Itemid=176
International Institute for Energy Conservation, Profiles by Number –
116. http://smartgridresearch.org/wp-
content/uploads/sgi_reports/Top_10_US_Utilities_by_DSM_Investment_Zpryme_Smart_Grid
_Insights_March_2011.pdf
117. U.S. Department of Energy Federal Energy Management Program, Energy Incentive Programs
in Idaho - http://www1.eere.energy.gov/femp/financing/eip_id.html
118. Kootenai Electric Cooperative website:
http://www.kec.com/documents/web2010_kec_annualreportv2.pdf
119. U.S. Department of Energy Federal Energy Management Program, Energy Incentive Programs
in Idaho - http://www1.eere.energy.gov/femp/financing/eip_id.html
120. U.S. Davis University ‚Proposals for the Future of Energy Efficiency‛ by Lester W. Baxter,
Oak Ridge National Laboratory - http://eec.ucdavis.edu/ACEEE/1994-96/1996/VOL07/007.PDF

2012 Idaho Energy Plan C-7
121. Idaho Public Utilities Commission Order No. 25809, CASE NO. WWP-E-94-10 WWP-G-94-5,
November 1994 (http://www.puc.state.id.us/search/orders/dtsearch.html) or see
http://www.puc.state.id.us/Rules.htm or
http://adm.idaho.gov/adminrules/rules/idapa31/31index.htm.
122. U.S. Department of Energy Federal Energy Management Program, Energy Incentive Programs
in Idaho - http://www1.eere.energy.gov/femp/financing/eip_id.html
123. Idaho Statute Title 61: http://www.legislature.idaho.gov/idstat/Title61/T61.htm and Idaho
Statute Titl3 62: http://www.legislature.idaho.gov/idstat/Title62/T62.htm
124. Executive Order No. 2007-15 Establishing The Office of Energy Resources:
http://gov.idaho.gov/mediacenter/execorders/eo07/eo_2007_15.html
125. Idaho Office of Energy Resources Strategic Plan 2010:
http://dfm.idaho.gov/Publications/BB/StrategicPlans/SP2011/EnergyResources_SP.pdf
126. Idaho Strategic Energy Alliance website - http://www.energy.idaho.gov/energyalliance/
127. Northwest Power Planning Council 6th Power Plan, February 2010,
http://www.nwcouncil.org/energy/powerplan/6/default.htm
128. Idaho Energy Resources Authority Statement of Purpose, http://www.iera.info/?page_id=5
129. Windpower Engineering and Development, Horse Butte Project -
http://www.windpowerengineering.com/construction/projects/32-for-horse-butte/
130. Idaho Energy Resources Authority, 2010 Horse Butte Press Release: http://www.iera.info/wp-
content/uploads/2011/08/Horse-Butte-Press-Release.pdf
131. Idaho Legislature, Idaho Statutes, Title 47 Mines and Mining,
http://www.legislature.idaho.gov/idstat/Title47/T47CH3SECT47-317.htm
132. State of Idaho Department of Lands, Idaho Oil and Gas Conservation Commission,
http://www.idl.idaho.gov/bureau/minerals/min_leasing/iogcc.html
133. Ruby Pipeline LLC, Project Summary: http://www.rubypipeline.com/
134. National Renewable Energy Laboratory, NREL Newsroom, ‚NREL Highlights Utility Green
Power Leaders‛, May 2010 - http://www.nrel.gov/news/press/2010/838.html
135. PacifiCorp 2011 Integrated Resource Plan:
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource
_Plan/2011IRP/2011IRP-MainDocFinal_Vol1-FINAL.pdf
136. Gateway West Transmission Line Project website:
http://www.gatewaywestproject.com/project_info.aspx and from Idaho Power 2011 IRP:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
137. U.S. Department of Energy, Energy Efficiency and Renewable Energy, Natural Gas -
http://www.fueleconomy.gov/feg/bifueltech.shtml
138. Fossil Fuel Resources, ‚The Advantages of Natural Gas‛, http://fossil-fuel.co.uk/natural-
gas/the-advantages-of-natural-gas
139. The Northwest Power Planning Council Sixth Northwest Conservation and Electric Power
Plan, Appendix D: Wholesale Electricity Price Forecast, page D-8,
http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan_Appendix_D.pdf
140. FERC Order Nos. 890 and 1000 - http://www.ferc.gov/industries/electric/indus-act/oatt-
reform.asp and http://www.ferc.gov/industries/electric/indus-act/trans-plan.asp
141. Idaho Power and PacifiCorp are members of NTTG, and Avista and BPA are members of
ColumbiaGrid. Information can be found at: http://www.columbiagrid.org/
142. RTEP activities are being funded by a grant from the U.S. Department of Energy as a part of
the American Recovery and Reinvestment Act of 2009. Information on RTEP can be found at:
http://www.wecc.biz/Planning/TransmissionExpansion/RTEP/Pages/default.aspx

2012 Idaho Energy Plan C-8
143. BPA also follows these interconnection and transmission service request policies through
FERC’s reciprocity requirement for non-investor owned utilities. Information can be found at:
http://www.ferc.gov/EventCalendar/Files/20060302163916-NJ06-2-000.pdf
144. Federal Energy Regulatory Commission, January 20, 2011, PacifiCorp docket numbers
PacifiCorp Docket Nos. ER11-2170-000, ER09-408-002, and ER09-408-003 -
http://www.ferc.gov/whats-new/comm-meet/2011/012011/E-5.pdf
145. Bonneville Power Administration, Energy Efficiency, ‚Promoting and Fostering the Efficient
Use of Energy in the Pacific Northwest‛, http://www.bpa.gov/energy/n/
146. Bonneville Power Administration, Energy Efficiency Innovation Overview,
http://www.bpa.gov/energy/n/innovation/index.cfm
147. For additional information please see IPC-E-10-27 regarding the changing landscape of
financing electric DSR at:
http://www.puc.idaho.gov/internet/cases/elec/IPC/IPCE1027/ordnotc/20110517ORDER_NO_3
2245.PDF
148. PacifiCorp 2011 IRP:
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource
_Plan/2011IRP/2011IRP-MainDocFinal_Vol1-FINAL.pdf
149. PacifiCorp 2011 IRP, page 148:
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource
_Plan/2011IRP/2011IRP-MainDocFinal_Vol1-FINAL.pdf
150. Rocky Mountain Power 2011 Integrated Resource Plan at 119, table 6.5, found at:
http://www.pacificorp.com/es/irp.html - This uses the costs of generation for the east side of
the system and includes a $19 per pound adder to account for carbon risk. This adder is
consistent with the analysis of Idaho Power and Avista.
151. Avista 2011 IRP:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IR
P.pdf
152. Avista 2011 Integrated Resource Plan at page 3-15, Figure 3.6:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IR
P.pdf
153. Avista 2011 Integrated Resource Plan at pages 6-2 and 6-10:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IR
P.pdf
154. Idaho Power 2011 IRP:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
155. Idaho Power 2011 IRP, page 3:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
156. Idaho Power 2011 IRP, page 4:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
157. NaturalGas.org, Resources, ‚How Much Natural Gas is There?‛,
http://www.naturalgas.org/overview/resources.asp
158. ‚New Drilling Method Opens Vast U.S. Oil Fields‛, Associated Press, Published February 10,
2011 - http://www.foxnews.com/us/2011/02/10/new-drilling-method-opens-vast-oil-fields/
159. Standard-Examiner, ‚Natural Gas Driller Has Hopes for Idaho‛, February 26, 2011 -
http://www.standard.net/topics/business/2011/02/16/natural-gas-driller-has-hopes-idaho
160. Ibid.
161. Idaho Petroleum Council, ‚Economic Opportunities from Oil and Gas Exploration‛,
http://idahopetroleumcouncil.com/wp-content/uploads/2011/08/Economic-Benefits.pdf

2012 Idaho Energy Plan C-9
162. Idaho Statesman, ‚Controversial Drilling Practice Called ‘Horizontal Fracking’ Stays Legal in
Idaho‛, April 20, 2011 - http://www.idahostatesman.com/2011/04/20/1616690/controversial-
drilling-practice.html
163. U.S. Department of Transportation, Bureau of Transportation Statistics, State Transportation
Statistics, 2009
164. U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Vehicle
Technologies Program, DOE/GO-102010-3058, May 2010
165. Pike Research, Electric Vehicle Market Forecasts, 3Q 2011,
http://www.pikeresearch.com/research/electric-vehicles-10-predictions-for-2011
166. Energy Information Administration, http://ww.eia.gov/state/seds, Table C2 Energy
Consumption Estimates for Major Energy Sources by Physical Units, 2009
167. Ethanol Producers Magazine, USA Plants, http://www.ethanolproducer.com/plants/listplants
168. http://biodiesel.org/buyingbiodiesel/plants
169. Northwest Power and Conservation Council. (2010). Sixth Northwest Conservation and Electric
Power Plan (No. Council Document 2010-09). Retrieved from
http://www.nwcouncil.org/energy/powerplan/6/default.htm
170. National Action Plan for Energy Efficiency (2007). National Action Plan for Energy Efficiency
Vision for 2025: Developing a Framework for Change. www.epa.gov/eeactionplan.
171. See Idaho Office of Energy Resources K-12 School Efficiency Project at
http://www.energy.idaho.gov/stimulus/state_programgrants.htm
172. Northwest Power Planning Council Sixth Northwest Conservation and Electric Power Plan,
February 2010, http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
173. World Nuclear Association, ‚Advanced Nuclear Power Reactors‛, http://www.world-
nuclear.org/info/inf08.html
174. National Mining Association, ‚What is Clean Coal Technology?‛,
http://www.nma.org/pdf/fact_sheets/cct.pdf
175. World Nuclear Association, ‚Clean Coal Technologies, Carbon Capture & Sequestration‛,
April 2011, http://world-nuclear.org/info/inf83.html
176. U.S. Department of Energy, Fossil Energy, ‚Clean Coal & Natural Gas Power Systems,‛ -
http://fossil.energy.gov/programs/powersystems/index.html
177. U.S. Department of Energy, 2011 Strategic Plan: http://energy.gov/downloads/2011-strategic-
plan
178. Scientific American, ‚How to Use Solar Energy at Night‛, February 18, 2009 -
http://www.scientificamerican.com/article.cfm?id=how-to-use-solar-energy-at-night
179. Energy Storage Trends Blog (sponsored by PennWell) -
http://energystoragetrends.blogspot.com/2011/08/doe-awards-nearly-7-million-to-
advance.html
180. Fuel Cells 2000, ‚What is a Fuel Cell?’ - http://www.fuelcells.org/
181. U.S. Department of Energy Hydrogen Program, ‚Hydrogen Storage‛ -
http://www.hydrogen.energy.gov/pdfs/doe_h2_storage.pdf
182. Ecomii, ‚Compressed Air Energy Storage‛, September 11, 2011 -
http://www.ecomii.com/investing/compressed-air
183. University of Oregon,‚Flywheels and Energy Storage‛,
http://zebu.uoregon.edu/1996/ph162/l10a.html
184. Ecomii, ‚Pumped Hydroelectric Storage‛, http://www.ecomii.com/investing/pumped-
hydroelectric
185. Wordpress.com: Current News and Views about Environmental Sustainability and Human
Ecology, ‚Everything I Need to Know About Flywheel Energy Storage Systems‛,

2012 Idaho Energy Plan C-10
http://edmortimer.wordpress.com/2011/07/05/everything-i-need-to-know-about-flywheel-
energy-storage-system/
186. ‚Distributed Generation: A Definition‛ by Thomas Ackerman, Electric Power Systems
Research, December 5, 2000: http://paginas.fe.up.pt/~cdm/DE2/DG_definition.pdf
187. International Energy Agency, Energy Technology Perspectives, ‚Scenarios & Strategies to
2050‛ - http://www.iea.org/techno/etp/ETP_2008_Exec_Sum_English.pdf
188. Congressional Budget Office, ‚Prospects for Distributed Electricity Generation‛, September
2003, http://www.cbo.gov/doc.cfm?index=4552&type=0&sequence=4
189. ‚Distributed Generation: Definition, Benefits, and Issues‛, G. Pepermans et al, K.U. Leuven
Energy Institute, Katholieke Universiteit Leuven.
190. The Boston Consulting Group, ‚Toward a Distributed Power World‛, Frank Klose et al,
http://www.bcg.com/documents/file51254.pdf
191. U.S. Department of Energy, National Energy Technology Laboratory, ‚Unconventional Fossil
Energy Resource Program‛,
http://www.netl.doe.gov/publications/factsheets/program/Prog100.pdf
192. Ibid.
193. ‚On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG
Emissions‛, Massachusetts Institute of Technology, Laboratory for Energy and the
Environment, July 2008, http://web.mit.edu/sloan-auto-
lab/research/beforeh2/otr2035/On%20the%20Road%20in%202035%20Exec%20Summary_MIT_
July%202008.pdf
194. U.S. Department of Agriculture, Economic Research Service:
http://www.ers.usda.gov/features/bioenergy/
195. ‚On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG
Emissions‛, Massachusetts Institute of Technology, Laboratory for Energy and the
Environment, July 2008, http://web.mit.edu/sloan-auto-
lab/research/beforeh2/otr2035/On%20the%20Road%20in%202035%20Exec%20Summary_MIT_
July%202008.pdf
196. Massachusetts Institute of Technology, Technology Review, May 8, 2009:
http://www.technologyreview.com/energy/22628/
197. ‚On the Road in 2035: Reducing Transportation’s Petroleum Consumption and GHG
Emissions‛, Massachusetts Institute of Technology, Laboratory for Energy and the
Environment, July 2008, http://web.mit.edu/sloan-auto-
lab/research/beforeh2/otr2035/On%20the%20Road%20in%202035%20Exec%20Summary_MIT_
July%202008.pdf
198. Science: The World’s Leading Journal of Original Scientific Research, Global News, and
Commentary, February 2008, http://www.sciencemag.org/content/319/5867/1238.abstract
199. National Science and Technology Council, ‚Net-Zero Energy, High-Performance Green
Buildings‛, October 2008,
http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergy
HighPerformanceGreenBuildings.pdf
200. ‚Reducing U.S. Greenhouse Gas Emissions: How Much at What cost?‛, McKinsey and
Company,
http://www.mckinsey.com/Client_Service/Sustainability/Latest_thinking/Reducing_US_green
house_gas_emissions.aspx
201. National Science and Technology Council, ‚Net-Zero Energy, High-Performance Green
Buildings‛, October 2008,

2012 Idaho Energy Plan C-11
http://www.bfrl.nist.gov/buildingtechnology/documents/FederalRDAgendaforNetZeroEnergy
HighPerformanceGreenBuildings.pdf
202. Energy Information Administration
http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/tx/use_tx_ID.html&mstate=Idaho (Tables
CT4, CT5, CT6 and CT7)
203. ‚The Multiple Pathways to Industrial Energy Efficiency‛, Lukas C. Brun and Gary Gereffi,
February 15, 2011, Duke University, http://www.cggc.duke.edu/pdfs/DukeCGGC_EE-
Report_2011-2-15_APPENDIX.pdf
204. J.R. Simplot Sustainability Summary 2010:
http://www.simplot.com/customcf/company/sustainability/index.html
205. Washington State University, Energy Program, Industrial Efficiency
http://www.energy.wsu.edu/IndustrialEfficiency.aspx
206. International Energy Agency, Energy Technology Perspectives, Scenarios and Strategies to
2050, http://www.iea.org/techno/etp/ETP_2008_Exec_Sum_English.pdf
207. International Energy Agency: iea.org or www.energy.gov/science-innovation or
Massachusetts Institute of Technology Energy Initiative:
web.mit.edu/mitei/research/index.html or Blue Ribbon Commission on America’s Nuclear
Future: www.brc.gov or Clean Edge Market Technology: www.cleanedge.com/reports/ or U.S.
Dept. of Energy Report on the First Quadrennial Technology Review, Sept. 2011,
http://energy.gov/sites/prod/files/ReportOnTheFirstQTR.pdf
208. American Gas Foundation, ‚Natural Gas in a Smart Energy Future‛, -
http://www.gasfoundation.org/ResearchStudies/natural-gas-smart-energy-future.htm
209. American Gas Foundation Study: ‚Direct Use of Natural Gas--Implications for Power
Generation, Energy Efficiency, and Carbon Emissions‛,
http://www.gasfoundation.org/ResearchStudies/directuse.htm
210. Northwest Energy Efficiency Alliance. ‚Single-Family Residential New Construction
Characteristics and Practices.‛ Portland, OR, March 27, 2007 -
http://neea.org/research/reports/168.pdf
211. Northwest Power Planning Council Sixth Northwest Conservation and Electric Power Plan,
February 2010, http://www.nwcouncil.org/energy/powerplan/6/final/SixthPowerPlan.pdf
212. Energy Information Administration SEDS, State Energy Data System Idaho (139.9 TBTUs
production, 509 TBTUs consumption) - Source:
http://www.eia.gov/state/seds/hf.jsp?incfile=sep_use/total/use_tot_IDcb.html&mstate=Idaho
213. See ‚Energy Careers in Idaho‛, Idaho Department of Labor, Spring 2009:
http://labor.idaho.gov/publications/energy_report.pdf
214. Carbon section sources: 2007 Idaho Energy Plan at
http://www.energy.idaho.gov/informationresources/d/energy_plan_2007.pdf; Carbon Issues
Task Force Report at http://www.energy.idaho.gov/energyalliance/taskforce.htm; United
States Global Change Research Program National Climate Assessment at
http://www.globalchange.gov/; Climate Change at the National Academies at http://dels-
old.nas.edu/climatechange/; U.S. Climate Change Technology Program at
http://www.climatetechnology.gov/; United States Environmental Protection Agency, Climate
Change, at http://www.epa.gov/climatechange/index.html; United States Department of
Agriculture, Office of the Chief Economist, Climate Change, at
http://www.usda.gov/oce/climate_change/; United States Department of Defense,
Quadrennial Defense Review Report, February 2010, at
http://www.defense.gov/QDR/QDR%20as%20of%2026JAN10%200700.pdf; International

2012 Idaho Energy Plan C-12
Energy Agency at http://www.iea.org/; Intergovernmental Panel on Climate Change at
http://www.ipcc.ch/; Western Governors’ Association at ,http://www.westgov.org
215. Avista 2011 Integrated Resource Plan, page 4-4:
http://www.avistautilities.com/inside/resources/irp/electric/Documents/2011%20Electric%20IR
P.pdf
216. Idaho Power Company 2011 Integrated Resource Plan, page 6:
http://www.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2011/2011IRPFINAL.pdf
217. PacifiCorp 2011 Integrated Resource Plan, page 181:
http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource
_Plan/2011IRP/2011IRP-MainDocFinal_Vol1-FINAL.pdf
218. House Bill No. 154: http://www.legislature.idaho.gov/legislation/2007/H0154.html
219. Environmental Protection Agency, National Environmental Policy Act -
http://www.epa.gov/region1/nepa/
220. Idaho Department of Commerce: Idaho Project 60 ,‛Strengthening Idaho’s Economy‛ -
http://project60.idaho.gov/
221. Idaho Department of Labor Press Release, October 12, 2011,
http://labor.idaho.gov/news/NewsReleases/tabid/1953/ctl/PressRelease/mid/2527/itemid/2360/
Default.aspx
222. Idaho Green Jobs Website: http://www2.labor.idaho.gov/futureready/ Idaho Green Jobs and
http://www2.labor.idaho.gov/futureready/docs/Infographic_Green_Economy_8x11.pdf
223. Idaho Department of Labor, ‚Job Training for Expanding Businesses‛ -
http://labor.idaho.gov/dnn/idl/Businesses/CustomizedTraining/tabid/647/Default.aspx and
http://www2.labor.idaho.gov/futureready/docs/Infographic_Green_Economy_8x11.pdf
224. 2011 Idaho Code Title 72 Worker’s Compensation And Related Laws -- Industrial Commission
Chapter 13 Employment Security Law 72-1347b Workforce Development Training Fund -
http://law.justia.com/codes/idaho/2011/title72/chapter13/72-1347b/
225. University of Utah, Technology and Commercialization Office, ‚Tech Commercialization‛ -
http://www.tco.utah.edu/
226. Idaho Department of Commerce: Idaho Project 60 ,‛Domestic Recruitment‛
http://www.project60.idaho.gov/recruit.html
227. Idaho Department of Commerce: Idaho Project 60 ,‛Inward Foreign Direct Investment‛
http://www.project60.idaho.gov/encourage.html
228. ‚Boise State Research Details Positive Economic Impacts from INL Operations‛, December 9,
2010, Boise State University Update, http://news.boisestate.edu/update/2010/12/09/boise-state-
research-details-positive-economic-impacts-from-idaho-national-laboratory-operations/
229. Idaho Strategic Energy Alliance website - http://www.energy.idaho.gov/energyalliance/
230. Idaho Strategic Energy Alliance, ISEA Energy Primer,
http://www.energy.idaho.gov/energyalliance/d/isea_primer_new.pdf
231. Idaho Falls Power Press Release, September 29, 2010 -
http://www.idahofallschamber.com/wwwroot/userfiles/files/pr_if_power_celebrates_public_p
ower_week.pdf
232. Idaho Power website, ‚Our Energy Future‛ -
http://www.idahopower.com/AboutUs/CompanyInformation/ourFuture/default.cfm
233. Avista website, ‚Powering Our Future‛ -
http://www.avistautilities.com/community/poweringourfuture/pages/default.aspx
234. Avista website: http://www.avistakids.com/
235. Center for Advanced Energy Studies -
https://inlportal.inl.gov/portal/server.pt/community/caes_home/281

2012 Idaho Energy Plan C-13
236. Energy Policy Institute - http://epi.boisestate.edu/
237. Boise State University, Update Campus News, ‚New Energy Efficiency Research Institute to
be Housed at Boise State‚, November 4, 2010 -
http://news.boisestate.edu/update/2010/11/04/new-energy-efficiency-research-institute-to-be-
housed-at-boise-state/
238. Northwest Lineman College, http://www.lineman.edu/
239. Information about The Energy Policy Act of 2005 can be found at:
http://doi.net/iepa/EnergyPolicyActof2005.pdf; information about the North American Electric
Reliability Corporation (NERC) can be found at www.nerc.com; information about the
Western Electricity Coordinating Council (WECC) is located at www.wecc.biz
240. Carbon section sources: 2007 Idaho Energy Plan at
http://www.energy.idaho.gov/informationresources/d/energy_plan_2007.pdf; Carbon Issues
Task Force Report at http://www.energy.idaho.gov/energyalliance/taskforce.htm; United
States Global Change Research Program National Climate Assessment at
http://www.globalchange.gov/; Climate Change at the National Academies at http://dels-
old.nas.edu/climatechange/; U.S. Climate Change Technology Program at
http://www.climatetechnology.gov/; United States Environmental Protection Agency, Climate
Change, at http://www.epa.gov/climatechange/index.html; United States Department of
Agriculture, Office of the Chief Economist, Climate Change, at
http://www.usda.gov/oce/climate_change/; United States Department of Defense,
Quadrennial Defense Review Report, February 2010, at
http://www.defense.gov/QDR/QDR%20as%20of%2026JAN10%200700.pdf; International
Energy Agency at http://www.iea.org/; Intergovernmental Panel on Climate Change at
http://www.ipcc.ch/; Western Governors’ Association at ,http://www.westgov.org
241. Database of State Incentives for Renewables and Efficiency, Idaho -
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=ID01F&re=1&ee=1
242. Senate Bill No. 1192 - http://www.legislature.idaho.gov/legislation/2005/S1192.html
243. Treasure Valley Clean Cities of Idaho website: http://www.tvcleancities.org/ and
http://www.cngprices.com/stations/CNG/Idaho/
244. U.S. Department of Energy, Energy Efficiency & Renewable Energy, ‚Ethanol‛,
www.fueleconomy.gov/feg/ethanol.shtml
245. Changes in Gasoline IV, Renewable Fuels Association, June 2009,
http://ethanolrfa.3cdn.net/dd9e74ce1c454a97cc_rbm6bdgh3.pdf
246. IDAPA 02.02.14: http://adm.idaho.gov/adminrules/rules/idapa02/0214.pdf
247. Idaho Statutes § 63-3022C: http://www.legislature.idaho.gov/idstat/Title63/T63CH30SECT63-
3022C.htm
248. Autoblog: ‚New Federal CAFE standards officially released, 34.1 mpg by 2016‛, April 1, 2010,
http://www.autoblog.com/2010/04/01/new-federal-cafe-standards-officially-released-34-1-
mpg-by-2016/
249. More information about International Building Codes can be found at the International Code
Council website: http://www.iccsafe.org/
250. Online Code Environment & Advocacy Network, ‚Idaho Board to Implement 2009 IECC
Beginning January 2011‛, September 1, 2010, http://bcap-
ocean.org/news/2010/september/01/idaho-board-implement-2009-iecc-beginning-january-2011
251. America’s Home Energy Education Challenge website -
http://www.homeenergychallenge.org/
252. BuildingRating website - http://www.buildingrating.org/

2012 Idaho Energy Plan C-14

Additional Resources:
 Idaho Energy: The Idaho Energy Primer (published by the Idaho Strategic Energy Alliance):
http://www.energy.idaho.gov/energyalliance/d/isea_primer_new.pdf
 Energy Jobs in Idaho: ‚Energy Careers in Idaho‛, Idaho Dept. of Labor, Spring 2009:
http://labor.idaho.gov/publications/energy_report.pdf
 Oil and Gas Exploration in Idaho Map from the Idaho Geological Survey:
http://www.idahogeology.org/PDF/Digital_Data_(D)/Digital_Web_Maps_(DWM)/Oil_Gas_D
WM-81-M.pdf
 Hybrid Energy Systems: http://www.ge-energy.com/ (general information on General
Electric’s work in this area), http://www.ge.com/battery/plugin.html (regarding ‚plug in‛
hybrid energy and battery systems), http://www.ge.com/innovation/battery/index.html
(battery technologies)
 International Energy Agency: www.iea.org/subjectqueries.index.asp
 U. S. Department of Energy: www.energy.gov/science-innovation
 Massachusetts Institute of Technology: web.mit.edu/mitei/research/studies/index
 Blue Ribbon Commission on America's Nuclear Future: www.brc.gov
 Clean Energy Trends: www.cleanedge.com/reports
 U.S. Department of Energy First Quadrennial Technology Review (QTR), September 2011,
http://energy.gov/sites/prod/files/ReportOnTheFirstQTR.pdf
 Industrial Energy Efficiency Worldwide: United Nations Industrial Development
Organization, ‚Global Industrial Energy Efficiency Benchmarking,‛, November 2010,
http://www.unido.org/fileadmin/user_media/Services/Energy_and_Climate_Change/Energy_
Efficiency/Benchmarking_%20Energy_%20Policy_Tool.pdf