July 10, 2015
CapitalPress.com
Idaho irrigators back shorter
solar, wind energy contracts
By JOHN O’CONNELL
Capital Press
BOISE — Idaho irrigation
entities are backing a proposal
by the state’s electric companies
to significantly shorten manda-
tory contract lengths for solar
and wind projects, believing the
change would keep power rates
in check.
The Idaho Public Utilities
Hommission recently complet-
ed technical hearings on the pro-
posal and scheduled the close of
public comment for July 10.
Though
Hommissioner
Mack Redford recently died,
PUH spokesman Gene Fadness
expects the two other commis-
sioners will come to a consen-
sus, given the urgency of re-
solving the issue. A decision is
expected by late this month or
early August.
Under the federal Public
Utility Regulatory Policies Act,
utilities must purchase any qual-
ifying renewable power. But it’s
up to individual states to establish
contract lengths and the method
for calculating avoided costs —
payments for renewable energy
based on what utilities would
otherwise invest to produce an
equivalent amount of power.
On Jan. 30, Idaho Power Ho.
petitioned to shorten the length
of PURPA contracts for solar
and wind projects over 100 kilo-
watts from 20 years to two years.
The utility updates its Integrated
Resource Plan every two years
and reasoned the shorter con-
tract would better capture current
pricing. The proposal would also
apply to other PURPA projects,
such as hydro, biomass or digest-
er power, over 10 megawatts,
though there are currently no
such projects large enough to
qualify.
PacifiCorp and Avista later
signed on to Idaho Power’s peti-
tion. In the interim, the PUH has
set the length of solar and wind
contracts at five years.
Utilities have also request-
John O’Connell/Capital Press
A wind turbine produces energy on farmland near Rockland, Idaho. Idaho electric companies have
a proposal under consideration to shorten the lengths of contracts for wind and solar energy, which
many irrigators believe would be good for ratepayers.
ed that calculations for avoided
costs, now based on construc-
tion costs of gas-powered infra-
structure, be tied to market rates
instead.
Renewable energy develop-
ers, however, say utilities don’t
have similar flexibility in pay-
ing off their own infrastructure
and argue renewable projects
wouldn’t qualify for financing
with such short contracts.
In his public comments,
one renewable energy develop-
er described the petition as “an
attempt to kill future solar in
Idaho.”
Irrigation organizations in-
cluding Idaho Irrigation Pumpers
Association, Twin Falls Hanal
Ho., Northside Hanal Ho. and
American Falls Reservoir Dis-
trict have intervened in the case.
Lynn Tominaga, who represents
the groundwater users, explained
the utilities can produce hydro,
gas and coal power more cheap-
ly, and they currently have ample
capacity to meet demand. He
said wind and solar energy must
be backed up by more reliable
energy sources anyway, which
detracts from their value.
“We have some concerns
about adding more renewable re-
sources that would raise the cost
to the ratepayer,” Tominaga said.
7
Washington beekeepers
win ‘farmer’ tax status
By DON JENKINS
Capital Press
OLYMPIA — In the eyes of
Washington’s tax law, beekeep-
ers are now part of agriculture.
Apiarists were declared
“farmers” in a sprawling
tax-cutting bill signed by Gov.
Jay Inslee on July 1.
Senate Bill 6057 grants
more than a dozen tax breaks to
industries, including aluminum
smelters, food processors, data
centers and newspapers.
Wrapped into the bill was
a provision that will give bee-
keepers the same tax status as
other agricultural producers.
Beekeepers will be exempt
from paying state business taxes
on money they collect for polli-
nation services or by selling their
products, such as honey, whole-
sale. They also will be exempt
from sales taxes for production
expenses, such as bee feed and
chemicals to keep hives healthy.
Any beekeeper with at least
one colony qualifies for at least
some of the exemptions. Bud-
get writers estimated the loss in
taxes at about $100,000 a year.
“I was really pleased (leg-
islators) took common sense
advice and made beekeepers
the equivalent of farmers as far
as the state is concerned,” said
Ephrata commercial beekeeper
Tim Hiatt, legislative director
for the Washington State Bee-
keepers Association.
“When we told people
about this, they would say,
‘Aren’t beekeepers already
part of agriculture?’”
Legislators granted tempo-
rary tax relief to beekeepers in
2008 to help them cope with
high mortality rates. The tax re-
lief was due to expire in 2017.
SB 6057 makes the tax breaks
permanent.
Sen. Jim Honeyford, R-Sun-
nyside, sponsored the honeybee
legislation. “Sen. Honeyford
was our great champion on this
one,” Hiatt said.
Beekeepers and Honeyford
argued that beekeepers are a
vital part of food production.
Hiatt and others said that out-
of-state beekeepers provide
pollination services in Wash-
ington but leave without paying
business taxes. “That really was
a matter of fairness,” Hiatt said.
The tax breaks, including the
one for beekeepers, were rolled
into one bill that will cost the
state an estimated $35.2 million
over the next two years in lost
revenue. One legislator remarked
that there was something in the
bill for every lawmaker to like
and dislike, but it was a compro-
mise package agreed to by House
and Senate budget writers.
The bill passed the Senate
38-10 and the House 77-21.
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Weather
concerns
rally grain
prices
By JOHN O’CONNELL
Capital Press
IDAHO FALLS, Idaho —
Wheat and corn prices ended
June with a slight rally due to
weather concerns in the Mid-
west and other parts of the
world, industry experts say.
Jim Rooney, Eastern Ida-
ho merchandiser with Lansing
Trade Group LLH, said exces-
sive rain has the industry an-
ticipating quality problems
and losses in Eastern soft red
wheat and critical hard red
winter wheat growing areas in
Texas, Oklahoma and Kansas.
Due to the weather con-
cerns, coupled with a bullish
recent USDA report on corn
and soybeans driving up com-
modity prices, Rooney said
prices finally rose to near the
growers’ cost of production
on Monday, before dropping
about 30 cents by Wednesday.
“We were able to make
some $6 purchases, and
growers had been waiting
for another chance at that,”
Rooney said. “Farmer selling
increased here, but we’re pull-
ing back now.”
Rooney said the growing
likelihood of El Nino con-
ditions limiting wheat pro-
duction in Australia has also
helped the wheat market.
Kansas State University
Extension agricultural econ-
omist Art Barnaby said his
state experienced a dry April
before heavy rains arrived in
mid-May — too late to help
yields in Southern Kansas but
likely benefiting farms to the
north.
“What’s really driving
(wheat prices) is rain and ex-
cess flooding in Missouri and
on east,” Barnaby said.
Barnaby said corn prices
also rose to $4.30 for new crop
corn and $4.13 for old crop by
July 1. Barnaby said it was sur-
prising that wheat prices began
increasing prior to corn.
He attributes the recent
increases to “the normal sum-
mer weather scare you can al-
most count on, and in a couple
of weeks it’s gone.”
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