The Idaho Public Utilites Commission says it would be "unfair, unjust and unreasonable" for a company with a special contract for electricity to share in a general rate reduction.
The commission earlier allowed Idaho customers of Utah Poer & Light a 1.66 percent rate reduction as part of the settlement of legal action over UP&L's dealings with a coal mining company.Rates to Idaho customers of the utility will drop 1.66 percent over seven years, which overall represents a $i.6 million rate reduction.
Nu-West last August signed a special contract with UP&L after taking over the bankrupt Beker fertilizer plant near Soda Springs. Nu-West receives up to 17 megawatts of power at 2.4 cents per kilowatt hour the first year and 2.7 cents the second year. The special rates are lower than received by other energy customers.
"When we approved Nu-West's special contract with Utah Power and the incentive rates contained in that contract, there was no indication that Nu-West would claim...that it should receive even lower rates than those approved in its contract," the commission said.
Under the circumstances, the commission said, it would be wrong to give Nu-West an incentive rate.
The special contract said Nu-West's contract rates would not change. The commission noted that last year, Nu-West argued that its negotiated rates should not be subject to increases from a general rate increase.