2005 Idaho Code - 67-8912 — COST RECOVERY AND RATE STABILIZATION CHARGES OF PARTICIPATING UTILITIES

                                  TITLE  67
                      STATE GOVERNMENT AND STATE AFFAIRS
                                  CHAPTER 89
                     IDAHO ENERGY RESOURCES AUTHORITY ACT
    67-8912.  COST RECOVERY AND RATE STABILIZATION CHARGES OF PARTICIPATING
UTILITIES. (1) A participating utility contracting with the authority for the
electricity, service or product provided by a facility may establish one (1)
or more rate stabilization charges, cost recovery charges or power cost
adjustment charges as it deems necessary to provide for the payment of all
amounts owed by the participating utility to the authority with respect to the
facility and otherwise enable the participating utility to stabilize its
rates, to protect its consumers from volatile market prices and to insure
against market and other risks. Such rate stabilization charges, cost recovery
charges or power cost adjustment charges may be established by the
participating utility as a separate component of its existing rates and
charges or as a new charge.
    (2)  A participating utility that is subject to rate regulation by the
commission shall submit each of its proposed rate stabilization charges, cost
recovery charges or power cost adjustment charges to the commission for
approval.
    (3)  Each other participating utility that serves electric consumers in
the state but which is not subject to rate regulation by the commission, may
establish a rate stabilization charge, cost recovery charge or power cost
adjustment charge only after it has provided adequate notice of and a public
meeting or hearing on such charge to the members or consumers served by it. A
notice shall be deemed to be adequate if:
    (a)  It is given at least fifteen (15) days prior to the public meeting or
    hearing in the manner usually employed by the participating utility to
    give notice of its hearings or meetings, by mail, publication or
    otherwise; and
    (b)  It provides a brief description of the proposed rate stabilization,
    cost recovery or power cost adjustment charges and a summary of the
    purposes for which it is being established.
After the meeting or hearing has been held, the participating utility may
proceed to establish and fix the rate stabilization, cost recovery or power
cost adjustment charge.
    (4)  Each participating utility may agree in its contractual arrangements
with the authority as to the use and disposition of all or any part of the
revenues from any rate stabilization, cost recovery or power cost adjustment
charges established by the participating utility. Each participating utility
may pledge, and may create and grant a security interest in, all or a portion
of such revenues to secure its payment obligations to the authority in respect
of any facility. Any such agreement or pledge by a participating utility that
is a municipal corporation of the state shall not be deemed to create an
indebtedness or liability of such municipal corporation or a loan or donation
of its credit within the meaning of any constitutional or statutory provision.