Power Engineering - Idaho Power, state sign aquifer recharge agreement

13 April 2006 -- IDACORP, Inc. reports that a stipulation agreement signed April 11 between Idaho Power and the State of Idaho formalizes the parties' joint support of two aquifer recharge water permits, provided they are administered in a manner consistent with state law. The agreement positions the state to move forward with efforts to provide water for aquifer recharge under the two permits in a manner that upholds the utility's water rights and significantly reduces the impact of recharge on its customers.

Yesterday's signing removes one of the perceived obstacles to recharge under these permits and precluded the need for state lawmakers to craft new legislation. The agreement became possible when the state determined, and Idaho Power acknowledged, that the two recharge permits were issued prior to the historic 1984 Swan Falls Agreement, thereby permitting their utilization without violating that agreement.

"Today's agreement is important to the state, our customers and our company," said Idaho Power President and Chief Executive Officer LaMont Keen. "It provides water for recharge, upholds our company's water rights under state law and preserves the Swan Falls Agreement. At the same time it ensures that the potentially extreme financial burden that House Bill 800 represented to our customers is no longer looming on the horizon."

Keen said that, due to the large number of variables, the financial impact upon Idaho Power and its customers cannot be accurately determined until actual recharge programs under the two water permits are established. However, the potential maximum detriment -- or worst case scenario -- in a median water year is estimated at $30 million, less than one fourth that of House Bill 800. The likely impact could be much smaller.

"We signed this agreement today in the spirit of cooperation that we offered earlier in this debate," Keen added. "Idaho Power also is reaffirming its pledge to provide financial support and technical expertise to the Idaho Water Board's planning process to be launched this year."

"From the very beginning of this debate, our company has supported efforts to pursue aquifer recharge provided it did not disproportionately harm our customers. Today's agreement is a win for our customers and a win for the agricultural interests that want to pursue aquifer recharge. As a result, water rights law continues to be protected and important public policy has not been unreasonably modified."

Idaho Power and leadership in the House had battled over a proposed bill that would have rolled back an Idaho law unanimously passed in 1994 containing protections for the public benefit of low-cost hydroelectric generation. The bill was defeated in the Idaho Senate on March 30 by a margin of 21-14, but efforts to revive the bill or something similar had continued until the April 11 agreement.

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