HB 167: Limiting sale of Idaho energy — 2025

Summary: HB 167 would limit the ability to develop energy projects in Idaho, unless 75% of the electricity generated remains for sale within the state.

ICL's position: Oppose

Current Bill Status: House Committee

Issue Areas: Clean Air, Clean Energy, Climate Change, Energy

Official Legislative Site

Reps. John Gannon (D-Boise) and David Leavitt (R-Twin Falls) introduced House Bill 167, which would limit the ability to use eminent domain for energy projects unless 75% of the electricity generated remains for sale within the State of Idaho. The remaining 25% would be allowed to be sold outside the state.

The bill does not serve the interest of Idaho consumers, utilities, nor the environment.

In particular, the bill violates Federal Energy Regulatory Commission requirements for utilities to provide for third party connections to transmit electricity, and the bill would limit these opportunities. In addition, Idaho utility companies own shares and portions of existing transmission lines and infrastructure, in some cases, less than 25% of the ownership, as a result, HB 167 would interfere with use and operation of that infrastructure.

- - Increased Energy Costs: Limiting energy projects to primarily serve in-state consumers is out of step with energy markets in the West and would lead to increased development costs, which utilities will be forced to pass on to consumers through increased rates.
  - Reduced Investment in Infrastructure: The restriction will deter developers from investing in Idaho’s energy infrastructure due to limited transmission availability. This could result in a lack of modernization and maintenance of existing facilities, leading to higher costs borne by ratepayers.
  - Potential for Legal and Regulatory Costs: Implementing and enforcing such a mandate could lead to legal challenges and regulatory inconsistiencies. The costs associated with these processes may be transferred to consumers through higher utility rates.
  - Limited Access to Competitive Energy Markets: By restricting the sale of electricity, Idaho ratepayers will miss out on the benefits of competitive pricing available in broader regional markets. This isolation would result in higher energy prices for Idahoans compared to ratepayers in neighboring states who participate in efficient energy markets.

While the legislation aims to prioritize Idaho’s energy consumption, ICL is concerned that it will lead to higher energy costs and reduced opportunities for utilities and consumers alike.