The Idaho Pubic Utilities Commission has approved two new electric market experiments to test a market-based pricing tariff proposed by one electric utility and a direct-access pilot program proposed by another.
Market-based pricing. It authorized Idaho Power Co. to offer industrial customers, on an experimental basis, the option of purchasing power under a market-based rate schedule. Customers who contract for 5 to 10 megawatts of firm demand at one delivery point qualify for the pilot tariff program. Qualifying companies may elect to have all or as little as one-third of their load delivered at charges tied to energy market prices.
The market-based rate schedule provides two options as market proxies: The Dow Jones-California-Oregon border index and the futures contracts traded on the New York Mercantile Exchange for the California-Oregon border delivery point. The energy price under the market-based price option includes an adder of 3.6 mills to ensure that pilot tariff customers contribute adequately to fixed system costs. Re Idaho Power Co., Case No. IPC-E-96-25, Order No. 26872, April 7, 197 (Idaho P.U.C.).
Direct access. The commission also authorized the Washington Water Power Co. to extend its existing industrial customer direct-access pilot program to commercial and residential users. Under the new plan, small users may choose alternative energy providers for a maximum of two years beginning July 1997.