Quiz-summary
0 of 30 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
Information
Premium Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 30 questions answered correctly
Your time:
Time has elapsed
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- Answered
- Review
-
Question 1 of 30
1. Question
In Idaho, when a regulated electric utility seeks approval to construct a new 500-megawatt solar photovoltaic facility to meet projected load growth over the next decade, what is the fundamental legal framework that governs the Public Utilities Commission’s (IPUC) evaluation and ultimate decision to grant or deny the necessary authorization?
Correct
The Idaho Public Utilities Commission (IPUC) has a mandate to ensure reliable, safe, and reasonably priced energy services for Idaho consumers. When considering the acquisition of new generating capacity, the IPUC must evaluate proposals based on several statutory criteria. Idaho Code Section 62-1303 outlines the responsibilities of the IPUC, including the regulation of public utilities. Specifically, when a utility proposes to build or acquire new generation, it often requires a Certificate of Public Convenience and Necessity (CPCN). The IPUC’s review process for a CPCN application for a new power plant involves assessing various factors to determine if the proposed facility is in the public interest. These factors are generally enumerated in Idaho Code and IPUC rules and include, but are not limited to, the necessity of the facility to meet projected demand, the economic feasibility and cost-effectiveness of the proposal compared to alternatives, the environmental impact, the reliability and safety of the proposed operation, and the impact on existing utility infrastructure and service. The “public interest” standard is a broad one that encompasses all these elements, aiming to balance the utility’s need to provide service with the consumer’s right to affordable and dependable energy. The question asks about the primary legal basis for the IPUC’s decision-making authority in approving or denying such proposals, which is rooted in its statutory charge to regulate utilities and ensure public welfare in energy provision.
Incorrect
The Idaho Public Utilities Commission (IPUC) has a mandate to ensure reliable, safe, and reasonably priced energy services for Idaho consumers. When considering the acquisition of new generating capacity, the IPUC must evaluate proposals based on several statutory criteria. Idaho Code Section 62-1303 outlines the responsibilities of the IPUC, including the regulation of public utilities. Specifically, when a utility proposes to build or acquire new generation, it often requires a Certificate of Public Convenience and Necessity (CPCN). The IPUC’s review process for a CPCN application for a new power plant involves assessing various factors to determine if the proposed facility is in the public interest. These factors are generally enumerated in Idaho Code and IPUC rules and include, but are not limited to, the necessity of the facility to meet projected demand, the economic feasibility and cost-effectiveness of the proposal compared to alternatives, the environmental impact, the reliability and safety of the proposed operation, and the impact on existing utility infrastructure and service. The “public interest” standard is a broad one that encompasses all these elements, aiming to balance the utility’s need to provide service with the consumer’s right to affordable and dependable energy. The question asks about the primary legal basis for the IPUC’s decision-making authority in approving or denying such proposals, which is rooted in its statutory charge to regulate utilities and ensure public welfare in energy provision.
-
Question 2 of 30
2. Question
A significant industrial energy consumer in Boise, Idaho, has been informed by their electricity provider that a new demand charge structure will be implemented next quarter, impacting their monthly billing significantly. The utility has not filed a formal rate case or sought approval from the Idaho Public Utilities Commission (IPUC) for this change, asserting it is a standard adjustment to reflect peak usage costs. What is the primary legal consequence for the utility under Idaho energy law if they proceed with this unilateral implementation of the new demand charge?
Correct
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities within the state, including the rates and services offered by electricity providers. When a utility proposes a change in its rate structure, such as implementing a new demand charge for large industrial customers, the IPUC must review the proposal to ensure it is just, reasonable, and not discriminatory. This review process typically involves public hearings, expert testimony, and the examination of the utility’s cost of service and revenue requirements. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities and grants the IPUC the power to approve or deny rate changes. Furthermore, Idaho Code Section 61-307 requires that all rates, tolls, charges, classifications, rules, and regulations of public utilities be just and reasonable. The IPUC’s decision-making process is guided by principles of ensuring adequate service, preventing unreasonable discrimination among customer classes, and allowing utilities a fair rate of return on their investments. Therefore, a utility’s unilateral implementation of a new rate structure without IPUC approval would be a violation of these regulatory mandates. The scenario describes a utility bypassing the established regulatory process for rate changes.
Incorrect
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities within the state, including the rates and services offered by electricity providers. When a utility proposes a change in its rate structure, such as implementing a new demand charge for large industrial customers, the IPUC must review the proposal to ensure it is just, reasonable, and not discriminatory. This review process typically involves public hearings, expert testimony, and the examination of the utility’s cost of service and revenue requirements. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities and grants the IPUC the power to approve or deny rate changes. Furthermore, Idaho Code Section 61-307 requires that all rates, tolls, charges, classifications, rules, and regulations of public utilities be just and reasonable. The IPUC’s decision-making process is guided by principles of ensuring adequate service, preventing unreasonable discrimination among customer classes, and allowing utilities a fair rate of return on their investments. Therefore, a utility’s unilateral implementation of a new rate structure without IPUC approval would be a violation of these regulatory mandates. The scenario describes a utility bypassing the established regulatory process for rate changes.
-
Question 3 of 30
3. Question
Consider a scenario where an independent power producer, operating solely within Idaho, plans to construct a new 150-megawatt wind energy generation facility in a rural area of the state. This facility is intended to serve wholesale electricity markets and is not directly tied to a specific retail utility’s integrated resource plan. Under Idaho law, what is the primary regulatory prerequisite that this independent power producer must fulfill with the Idaho Public Utilities Commission (IPUC) before commencing construction of this facility?
Correct
The Idaho Public Utilities Commission (IPUC) has broad authority over the regulation of public utilities within the state, including those involved in energy generation, transmission, and distribution. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities. When a utility proposes to construct a new major energy facility, such as a large-scale solar farm or a new transmission line, it must typically seek a “certificate of need” or a “siting certificate” from the IPUC. This process involves demonstrating that the proposed facility is necessary to meet the public’s demand for energy and that it will be built in a manner that is consistent with public interest, environmental considerations, and economic feasibility. The IPUC’s review often includes public hearings, environmental impact assessments, and consideration of alternative energy sources or facility locations. The purpose of this rigorous review is to ensure that utility investments serve the long-term interests of Idaho ratepayers and the state’s energy infrastructure, balancing the need for reliable and affordable energy with environmental stewardship and economic development. Without this required IPUC approval, a utility undertaking such a project would be in violation of Idaho’s public utility regulatory framework.
Incorrect
The Idaho Public Utilities Commission (IPUC) has broad authority over the regulation of public utilities within the state, including those involved in energy generation, transmission, and distribution. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities. When a utility proposes to construct a new major energy facility, such as a large-scale solar farm or a new transmission line, it must typically seek a “certificate of need” or a “siting certificate” from the IPUC. This process involves demonstrating that the proposed facility is necessary to meet the public’s demand for energy and that it will be built in a manner that is consistent with public interest, environmental considerations, and economic feasibility. The IPUC’s review often includes public hearings, environmental impact assessments, and consideration of alternative energy sources or facility locations. The purpose of this rigorous review is to ensure that utility investments serve the long-term interests of Idaho ratepayers and the state’s energy infrastructure, balancing the need for reliable and affordable energy with environmental stewardship and economic development. Without this required IPUC approval, a utility undertaking such a project would be in violation of Idaho’s public utility regulatory framework.
-
Question 4 of 30
4. Question
Consider a scenario where a major electric utility operating in Idaho proposes to construct a new geothermal power facility to meet projected demand increases. The utility submits an application to the Idaho Public Utilities Commission (IPUC) requesting approval for the project, including a revised rate structure to recover the capital costs. Which of the following best describes the primary legal and regulatory mechanism the IPUC would utilize to evaluate and potentially approve this proposal, considering the need to balance utility investment recovery with consumer protection and the public interest in reliable energy?
Correct
The Idaho Public Utilities Commission (IPUC) has regulatory authority over public utilities, including those involved in energy generation and distribution within the state. When a utility proposes a significant change in its operations or rate structure, such as constructing a new power plant or altering how costs are allocated to different customer classes, it must seek approval from the IPUC. This process typically involves a formal application and a public hearing, where stakeholders can present evidence and arguments. The IPUC’s decision-making is guided by Idaho statutes, including those pertaining to public utilities and administrative procedures, as well as its own rules and regulations. The commission’s mandate includes ensuring that utility rates are just and reasonable, that services are adequate, and that the public interest is served. The specific legal framework for rate cases and new construction proposals is found within Idaho Code Title 62, Chapter 6, which outlines the powers and duties of the IPUC. The commission must consider factors such as the cost of service, the financial health of the utility, the impact on consumers, and the overall reliability and sustainability of energy supply in Idaho. The process is designed to balance the interests of the utility, its customers, and the state’s broader energy policy objectives.
Incorrect
The Idaho Public Utilities Commission (IPUC) has regulatory authority over public utilities, including those involved in energy generation and distribution within the state. When a utility proposes a significant change in its operations or rate structure, such as constructing a new power plant or altering how costs are allocated to different customer classes, it must seek approval from the IPUC. This process typically involves a formal application and a public hearing, where stakeholders can present evidence and arguments. The IPUC’s decision-making is guided by Idaho statutes, including those pertaining to public utilities and administrative procedures, as well as its own rules and regulations. The commission’s mandate includes ensuring that utility rates are just and reasonable, that services are adequate, and that the public interest is served. The specific legal framework for rate cases and new construction proposals is found within Idaho Code Title 62, Chapter 6, which outlines the powers and duties of the IPUC. The commission must consider factors such as the cost of service, the financial health of the utility, the impact on consumers, and the overall reliability and sustainability of energy supply in Idaho. The process is designed to balance the interests of the utility, its customers, and the state’s broader energy policy objectives.
-
Question 5 of 30
5. Question
Consider a scenario where a major electric utility in Idaho proposes to construct a new 500-megawatt natural gas-fired power plant to meet projected load growth. The utility submits an application to the Idaho Public Utilities Commission (IPUC) for a Certificate of Public Convenience and Necessity (CPCN). Which of the following accurately describes a primary consideration the IPUC would likely weigh heavily in its review of this application under Idaho law, focusing on the public interest?
Correct
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving new energy generation facilities. Idaho Code § 62-1301 et seq., particularly concerning public utilities, outlines the regulatory framework. When a public utility seeks to construct a new power plant, it must demonstrate that the facility is in the public interest and meets certain operational and financial criteria. This often involves a Certificate of Public Convenience and Necessity (CPCN) application. The IPUC evaluates factors such as the need for the facility, its environmental impact, its economic feasibility, and the potential effect on existing utility services and rates. The process is designed to ensure that investments in energy infrastructure benefit Idaho consumers and align with the state’s energy policy objectives. A key aspect of this evaluation is whether the proposed facility is the most cost-effective means of meeting projected energy demand, considering alternatives and potential impacts on the grid. The commission’s decision is based on a thorough review of evidence presented by the utility and potentially intervenors.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving new energy generation facilities. Idaho Code § 62-1301 et seq., particularly concerning public utilities, outlines the regulatory framework. When a public utility seeks to construct a new power plant, it must demonstrate that the facility is in the public interest and meets certain operational and financial criteria. This often involves a Certificate of Public Convenience and Necessity (CPCN) application. The IPUC evaluates factors such as the need for the facility, its environmental impact, its economic feasibility, and the potential effect on existing utility services and rates. The process is designed to ensure that investments in energy infrastructure benefit Idaho consumers and align with the state’s energy policy objectives. A key aspect of this evaluation is whether the proposed facility is the most cost-effective means of meeting projected energy demand, considering alternatives and potential impacts on the grid. The commission’s decision is based on a thorough review of evidence presented by the utility and potentially intervenors.
-
Question 6 of 30
6. Question
Consider a scenario where a newly formed cooperative, “Pioneer Power Cooperative,” proposes to construct a 200-megawatt solar photovoltaic facility in rural Idaho to serve its member-owners. This facility would involve significant land acquisition and the installation of new transmission infrastructure connecting to the existing grid managed by a regulated investor-owned utility. What is the primary state-level regulatory authorization Pioneer Power Cooperative must obtain from Idaho state authorities before commencing construction of this facility to ensure it aligns with the public interest and operational requirements for energy infrastructure within Idaho?
Correct
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities, including those involved in energy generation, transmission, and distribution within the state of Idaho. When a public utility proposes to construct a new major energy facility, such as a large-scale solar farm or a new transmission line, it must seek a Certificate of Public Convenience and Necessity (CPCN) from the IPUC. This process ensures that the proposed facility is in the public interest, considering factors like economic feasibility, environmental impact, and the availability of alternative solutions. Idaho Code § 61-526 specifically addresses the requirement for a CPCN for the construction of new utility lines or facilities. The IPUC’s review involves extensive public notice, opportunities for public comment, and detailed evidentiary hearings where the utility must demonstrate that the proposed project meets the statutory criteria for public convenience and necessity. Failure to obtain a CPCN before commencing construction can result in significant penalties and an order to cease operations. Other regulatory bodies, like the U.S. Environmental Protection Agency (EPA) or the U.S. Army Corps of Engineers, may also have jurisdiction over specific aspects of the project, particularly concerning environmental permits or water crossings, but the primary state-level authorization for the facility’s overall construction and operation as a public utility rests with the IPUC through the CPCN process.
Incorrect
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities, including those involved in energy generation, transmission, and distribution within the state of Idaho. When a public utility proposes to construct a new major energy facility, such as a large-scale solar farm or a new transmission line, it must seek a Certificate of Public Convenience and Necessity (CPCN) from the IPUC. This process ensures that the proposed facility is in the public interest, considering factors like economic feasibility, environmental impact, and the availability of alternative solutions. Idaho Code § 61-526 specifically addresses the requirement for a CPCN for the construction of new utility lines or facilities. The IPUC’s review involves extensive public notice, opportunities for public comment, and detailed evidentiary hearings where the utility must demonstrate that the proposed project meets the statutory criteria for public convenience and necessity. Failure to obtain a CPCN before commencing construction can result in significant penalties and an order to cease operations. Other regulatory bodies, like the U.S. Environmental Protection Agency (EPA) or the U.S. Army Corps of Engineers, may also have jurisdiction over specific aspects of the project, particularly concerning environmental permits or water crossings, but the primary state-level authorization for the facility’s overall construction and operation as a public utility rests with the IPUC through the CPCN process.
-
Question 7 of 30
7. Question
Consider a scenario where a regulated electric cooperative operating in northern Idaho, which is not directly subject to the same rate-setting oversight as investor-owned utilities under Title 62 of the Idaho Code, proposes a significant adjustment to its service territory’s energy supply charges. This cooperative, while generally operating outside the IPUC’s direct rate case approval process for its overall rate structure, still must adhere to certain state-level energy policy directives and consumer protection standards. If this cooperative’s proposed charge adjustment is contested by a coalition of its member-consumers due to concerns about transparency and the fairness of the calculation methodology, what primary recourse would be available to the consumers under Idaho law, given the cooperative’s distinct regulatory status compared to an investor-owned utility?
Correct
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving utility rate adjustments. When a regulated electric utility in Idaho, such as Idaho Power, seeks to change its rates, it must file an application with the IPUC. This application is typically a formal request for a general rate increase or decrease, often referred to as a “rate case.” The IPUC then initiates a formal proceeding, which involves several key steps designed to ensure that any rate changes are just and reasonable and that the utility is allowed to recover its legitimate operating expenses and earn a fair rate of return on its invested capital, while also protecting consumer interests. The process begins with the utility filing its application and supporting evidence. Following the filing, the IPUC staff conducts an independent review of the utility’s proposed rates and the underlying cost data. This review often involves detailed analysis of the utility’s financial statements, operating expenses, capital investments, and revenue requirements. Public notice is provided to all interested parties, including consumers, consumer advocacy groups, and other stakeholders. These parties, along with the IPUC staff, can intervene in the proceeding and present their own evidence and arguments. Public hearings are typically held to allow for testimony from the utility, intervenors, and the public. The IPUC then considers all the evidence presented, including expert testimony and legal arguments, to reach a decision. The commission’s final order will either approve, deny, or modify the utility’s proposed rates. The IPUC’s authority to regulate these rates stems from Idaho Code Title 62, Chapter 6, which governs public utilities and their operations within the state. The commission’s decision-making process is guided by principles of ensuring adequate service at reasonable rates and preventing discriminatory practices.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving utility rate adjustments. When a regulated electric utility in Idaho, such as Idaho Power, seeks to change its rates, it must file an application with the IPUC. This application is typically a formal request for a general rate increase or decrease, often referred to as a “rate case.” The IPUC then initiates a formal proceeding, which involves several key steps designed to ensure that any rate changes are just and reasonable and that the utility is allowed to recover its legitimate operating expenses and earn a fair rate of return on its invested capital, while also protecting consumer interests. The process begins with the utility filing its application and supporting evidence. Following the filing, the IPUC staff conducts an independent review of the utility’s proposed rates and the underlying cost data. This review often involves detailed analysis of the utility’s financial statements, operating expenses, capital investments, and revenue requirements. Public notice is provided to all interested parties, including consumers, consumer advocacy groups, and other stakeholders. These parties, along with the IPUC staff, can intervene in the proceeding and present their own evidence and arguments. Public hearings are typically held to allow for testimony from the utility, intervenors, and the public. The IPUC then considers all the evidence presented, including expert testimony and legal arguments, to reach a decision. The commission’s final order will either approve, deny, or modify the utility’s proposed rates. The IPUC’s authority to regulate these rates stems from Idaho Code Title 62, Chapter 6, which governs public utilities and their operations within the state. The commission’s decision-making process is guided by principles of ensuring adequate service at reasonable rates and preventing discriminatory practices.
-
Question 8 of 30
8. Question
Consider a proposal by an independent power producer, “Cascade Renewables,” to construct a new 230-kilovolt transmission line in southern Idaho to connect a newly developed wind farm to the regional grid. The project aims to enhance grid stability and provide access to renewable energy sources. What primary legal framework and core principles would the Idaho Public Utilities Commission (IPUC) utilize when evaluating Cascade Renewables’ application for a Certificate of Public Convenience and Necessity (CPCN) under Idaho law, and what is the overarching objective of this regulatory process?
Correct
The Idaho Public Utilities Commission (IPUC) plays a pivotal role in regulating energy utilities within the state. When considering the issuance of a Certificate of Public Convenience and Necessity (CPCN) for a new electric transmission line, the IPUC must weigh various factors to ensure the project serves the public interest. Idaho Code Section 49-101 et seq. (though this is a placeholder for actual Idaho code sections related to utility regulation, as specific section numbers can vary and require precise legal research for accuracy in a real exam) outlines the general authority of the IPUC. Key considerations for a CPCN include the necessity of the facility, its impact on the environment, the cost to consumers, and the availability of alternative solutions. The IPUC’s decision-making process often involves public hearings, expert testimony, and detailed analysis of the proposed project’s benefits versus its potential drawbacks. The commission is tasked with balancing the need for reliable and affordable energy with the protection of natural resources and the public welfare. A proposed project must demonstrate a clear need that cannot be adequately met by existing infrastructure or less impactful alternatives. The economic feasibility and the long-term financial implications for ratepayers are also crucial elements of the evaluation.
Incorrect
The Idaho Public Utilities Commission (IPUC) plays a pivotal role in regulating energy utilities within the state. When considering the issuance of a Certificate of Public Convenience and Necessity (CPCN) for a new electric transmission line, the IPUC must weigh various factors to ensure the project serves the public interest. Idaho Code Section 49-101 et seq. (though this is a placeholder for actual Idaho code sections related to utility regulation, as specific section numbers can vary and require precise legal research for accuracy in a real exam) outlines the general authority of the IPUC. Key considerations for a CPCN include the necessity of the facility, its impact on the environment, the cost to consumers, and the availability of alternative solutions. The IPUC’s decision-making process often involves public hearings, expert testimony, and detailed analysis of the proposed project’s benefits versus its potential drawbacks. The commission is tasked with balancing the need for reliable and affordable energy with the protection of natural resources and the public welfare. A proposed project must demonstrate a clear need that cannot be adequately met by existing infrastructure or less impactful alternatives. The economic feasibility and the long-term financial implications for ratepayers are also crucial elements of the evaluation.
-
Question 9 of 30
9. Question
Consider a scenario where Clearwater Energy Cooperative, an Idaho-based electric cooperative, proposes to enter into a long-term power purchase agreement with a new solar generation facility located in a remote part of eastern Idaho. The agreement necessitates substantial investment in new transmission lines to connect the facility to the cooperative’s existing distribution network. What is the primary legal framework and procedural requirement that Clearwater Energy Cooperative must satisfy before the Public Utilities Commission of Idaho (IPUC) can approve this wholesale power purchase agreement and the associated transmission infrastructure investment?
Correct
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving wholesale power purchase agreements, particularly those involving renewable energy sources and transmission infrastructure. Idaho Code § 62-616 outlines the commission’s authority to regulate public utilities, including their contracts for the sale or purchase of electricity. When a utility proposes a power purchase agreement (PPA) that requires significant capital investment in transmission upgrades, the IPUC must ensure that the agreement is in the public interest. This involves a thorough review of the economic feasibility, reliability, and environmental impact of the project. Specifically, the commission will examine whether the proposed PPA is cost-effective compared to alternative energy sources and transmission solutions, and whether it aligns with Idaho’s energy policy goals, which often prioritize reliable and affordable energy while encouraging sustainable development. The process typically involves a formal application, public notice, opportunities for intervenors (such as other utilities, consumer groups, or independent power producers) to participate, and a detailed evidentiary hearing. The commission’s decision must be supported by findings of fact and conclusions of law, demonstrating that the approved agreement serves the public convenience and necessity. The commission’s review is not merely a rubber stamp; it requires a substantive analysis of the proposed terms, the financial health of the parties involved, and the potential impact on Idaho ratepayers.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving wholesale power purchase agreements, particularly those involving renewable energy sources and transmission infrastructure. Idaho Code § 62-616 outlines the commission’s authority to regulate public utilities, including their contracts for the sale or purchase of electricity. When a utility proposes a power purchase agreement (PPA) that requires significant capital investment in transmission upgrades, the IPUC must ensure that the agreement is in the public interest. This involves a thorough review of the economic feasibility, reliability, and environmental impact of the project. Specifically, the commission will examine whether the proposed PPA is cost-effective compared to alternative energy sources and transmission solutions, and whether it aligns with Idaho’s energy policy goals, which often prioritize reliable and affordable energy while encouraging sustainable development. The process typically involves a formal application, public notice, opportunities for intervenors (such as other utilities, consumer groups, or independent power producers) to participate, and a detailed evidentiary hearing. The commission’s decision must be supported by findings of fact and conclusions of law, demonstrating that the approved agreement serves the public convenience and necessity. The commission’s review is not merely a rubber stamp; it requires a substantive analysis of the proposed terms, the financial health of the parties involved, and the potential impact on Idaho ratepayers.
-
Question 10 of 30
10. Question
A proposed high-voltage transmission line project, intended to connect a new renewable energy generation facility in eastern Idaho to a major load center in the western part of the state, requires state-level approval. The project will traverse both private and public lands, including areas managed by federal agencies. Which Idaho state regulatory body holds the primary authority for issuing the necessary siting certificate for this infrastructure project, ensuring it meets public need and environmental considerations within Idaho?
Correct
The Idaho Public Utilities Commission (IPUC) has specific authority regarding the siting of energy facilities within the state. Idaho Code Title 49, Chapter 23, specifically addresses the regulation of electric utility transmission lines. This statute outlines the process for obtaining a certificate of public convenience and necessity (CPCN) for major utility facilities, including high-voltage transmission lines. The IPUC evaluates applications based on factors such as public need, environmental impact, economic feasibility, and compliance with state and federal regulations. While federal agencies like the Federal Energy Regulatory Commission (FERC) and the Bureau of Land Management (BLM) may have overlapping jurisdiction, particularly concerning federal lands or interstate transmission, the IPUC retains primary authority over the siting of facilities that primarily serve Idaho customers and are located within the state’s borders. This includes ensuring that proposed facilities are consistent with the state’s energy policies and the public interest. The Idaho Department of Environmental Quality (DEQ) plays a role in environmental permitting, but the ultimate siting approval for major transmission infrastructure rests with the IPUC through the CPCN process. The Idaho Legislature sets the broader policy framework, but the IPUC is the administrative body responsible for implementing and enforcing these siting regulations.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific authority regarding the siting of energy facilities within the state. Idaho Code Title 49, Chapter 23, specifically addresses the regulation of electric utility transmission lines. This statute outlines the process for obtaining a certificate of public convenience and necessity (CPCN) for major utility facilities, including high-voltage transmission lines. The IPUC evaluates applications based on factors such as public need, environmental impact, economic feasibility, and compliance with state and federal regulations. While federal agencies like the Federal Energy Regulatory Commission (FERC) and the Bureau of Land Management (BLM) may have overlapping jurisdiction, particularly concerning federal lands or interstate transmission, the IPUC retains primary authority over the siting of facilities that primarily serve Idaho customers and are located within the state’s borders. This includes ensuring that proposed facilities are consistent with the state’s energy policies and the public interest. The Idaho Department of Environmental Quality (DEQ) plays a role in environmental permitting, but the ultimate siting approval for major transmission infrastructure rests with the IPUC through the CPCN process. The Idaho Legislature sets the broader policy framework, but the IPUC is the administrative body responsible for implementing and enforcing these siting regulations.
-
Question 11 of 30
11. Question
A privately owned utility company, aiming to enhance renewable energy generation capacity in Idaho, proposes the construction of a new hydroelectric facility along a segment of the Snake River. This substantial infrastructure project involves significant capital outlay and is anticipated to impact energy rates for consumers across the state. Under Idaho energy law, what is the primary regulatory pathway the utility must pursue to secure authorization for this major capital investment?
Correct
The Idaho Public Utilities Commission (IPUC) oversees the regulation of public utilities within the state, including those involved in energy generation and distribution. When a utility proposes a significant capital expenditure, such as the construction of a new hydroelectric facility on the Snake River, it must seek approval from the IPUC. This process is typically governed by Idaho Code Title 62, Chapter 13, which deals with the regulation of public utilities. Specifically, Section 62-1303 grants the IPUC the authority to approve or deny such investments. The commission evaluates the prudence, necessity, and reasonableness of the proposed expenditure to ensure it serves the public interest and that the costs are just and reasonable for ratepayers. This involves a thorough review of engineering plans, economic feasibility studies, environmental impact assessments, and market analyses. The IPUC’s decision-making process is guided by principles of ensuring reliable service, promoting efficient operations, and protecting consumers from excessive costs. Therefore, the primary legal mechanism for a utility to obtain authorization for a major capital project like a new hydroelectric dam in Idaho is through a formal application and approval process by the Idaho Public Utilities Commission.
Incorrect
The Idaho Public Utilities Commission (IPUC) oversees the regulation of public utilities within the state, including those involved in energy generation and distribution. When a utility proposes a significant capital expenditure, such as the construction of a new hydroelectric facility on the Snake River, it must seek approval from the IPUC. This process is typically governed by Idaho Code Title 62, Chapter 13, which deals with the regulation of public utilities. Specifically, Section 62-1303 grants the IPUC the authority to approve or deny such investments. The commission evaluates the prudence, necessity, and reasonableness of the proposed expenditure to ensure it serves the public interest and that the costs are just and reasonable for ratepayers. This involves a thorough review of engineering plans, economic feasibility studies, environmental impact assessments, and market analyses. The IPUC’s decision-making process is guided by principles of ensuring reliable service, promoting efficient operations, and protecting consumers from excessive costs. Therefore, the primary legal mechanism for a utility to obtain authorization for a major capital project like a new hydroelectric dam in Idaho is through a formal application and approval process by the Idaho Public Utilities Commission.
-
Question 12 of 30
12. Question
A regulated electric cooperative in Idaho proposes to implement a novel net metering tariff that significantly alters the compensation mechanism for small-scale solar photovoltaic systems connected to its distribution grid. Following the filing of its application with the Idaho Public Utilities Commission (IPUC), what is the most accurate characterization of the IPUC’s procedural obligation before approving or denying this tariff change?
Correct
The Idaho Public Utilities Commission (IPUC) plays a crucial role in regulating the state’s energy sector. When a utility proposes a significant change to its rate structure or service offerings, such as the implementation of a new distributed generation interconnection tariff, the IPUC must conduct a formal proceeding to evaluate the proposal’s impact on consumers, the utility’s financial health, and the broader public interest. This process, often initiated by a formal application filed by the utility, involves public notice, opportunities for stakeholder intervention and testimony (including from consumer advocacy groups and other interested parties), evidentiary hearings, and ultimately, a written decision or order from the Commission. The legal framework governing these proceedings is primarily found within Idaho Code Title 62, Chapter 6, which outlines the powers and duties of the IPUC, including its authority to approve or deny rate changes and service modifications. The commission’s decision must be supported by findings of fact and conclusions of law, demonstrating that the approved changes are just and reasonable and in accordance with applicable statutes and regulations. The process ensures transparency and due process for all parties involved, allowing for a thorough examination of the proposed changes before they become effective.
Incorrect
The Idaho Public Utilities Commission (IPUC) plays a crucial role in regulating the state’s energy sector. When a utility proposes a significant change to its rate structure or service offerings, such as the implementation of a new distributed generation interconnection tariff, the IPUC must conduct a formal proceeding to evaluate the proposal’s impact on consumers, the utility’s financial health, and the broader public interest. This process, often initiated by a formal application filed by the utility, involves public notice, opportunities for stakeholder intervention and testimony (including from consumer advocacy groups and other interested parties), evidentiary hearings, and ultimately, a written decision or order from the Commission. The legal framework governing these proceedings is primarily found within Idaho Code Title 62, Chapter 6, which outlines the powers and duties of the IPUC, including its authority to approve or deny rate changes and service modifications. The commission’s decision must be supported by findings of fact and conclusions of law, demonstrating that the approved changes are just and reasonable and in accordance with applicable statutes and regulations. The process ensures transparency and due process for all parties involved, allowing for a thorough examination of the proposed changes before they become effective.
-
Question 13 of 30
13. Question
A renewable energy developer proposes to construct a 200-megawatt wind energy facility in rural Idaho, requiring the installation of new transmission infrastructure to connect to the state’s grid. Prior to commencing any construction, what is the primary regulatory authorization the developer must secure from the state of Idaho to legally proceed with the project?
Correct
The Idaho Public Utilities Commission (IPUC) has broad authority over the regulation of public utilities within the state, including those involved in energy generation, transmission, and distribution. When a utility seeks to construct new major energy infrastructure, such as a large-scale solar farm or a significant transmission line, it must typically obtain a Certificate of Public Convenience and Necessity (CPCN) from the IPUC. This process is governed by Idaho Code Title 62, Chapter 13, specifically concerning the construction of utility facilities. The IPUC evaluates various factors when considering a CPCN application, including the need for the facility, its impact on the environment and public safety, the financial qualifications of the applicant, and the overall benefit to the public interest. This includes considering the projected costs, the availability of alternative solutions, and the potential for adverse effects on existing service or other utilities. The commission’s decision is based on a thorough review of evidence presented by the applicant, intervenors, and staff, aiming to ensure that the proposed facility serves the public convenience and necessity in the most reasonable and economical manner. The absence of a CPCN for such projects would mean the utility is not authorized to proceed with construction under Idaho law.
Incorrect
The Idaho Public Utilities Commission (IPUC) has broad authority over the regulation of public utilities within the state, including those involved in energy generation, transmission, and distribution. When a utility seeks to construct new major energy infrastructure, such as a large-scale solar farm or a significant transmission line, it must typically obtain a Certificate of Public Convenience and Necessity (CPCN) from the IPUC. This process is governed by Idaho Code Title 62, Chapter 13, specifically concerning the construction of utility facilities. The IPUC evaluates various factors when considering a CPCN application, including the need for the facility, its impact on the environment and public safety, the financial qualifications of the applicant, and the overall benefit to the public interest. This includes considering the projected costs, the availability of alternative solutions, and the potential for adverse effects on existing service or other utilities. The commission’s decision is based on a thorough review of evidence presented by the applicant, intervenors, and staff, aiming to ensure that the proposed facility serves the public convenience and necessity in the most reasonable and economical manner. The absence of a CPCN for such projects would mean the utility is not authorized to proceed with construction under Idaho law.
-
Question 14 of 30
14. Question
Consider a hypothetical scenario where a major Idaho utility proposes the construction of a new natural gas-fired power plant to meet projected increases in electricity demand. Under Idaho energy law, what is the primary regulatory hurdle the utility must overcome to gain approval for this significant infrastructure project?
Correct
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving new energy generation facilities. When a utility proposes a new power plant, it must demonstrate that the facility is necessary and in the public interest. This involves a rigorous review process, often referred to as a Certificate of Public Convenience and Necessity (CPCN). Idaho Code §62-616 outlines the requirements for obtaining a CPCN, which includes showing that the proposed service or facility is needed, that the applicant is able to provide it, and that it is in the public interest. The IPUC considers factors such as economic feasibility, environmental impact, reliability, and the availability of alternatives. For a new fossil fuel plant, the commission would scrutinize the long-term viability of the fuel source, potential carbon emissions, and compliance with state and federal environmental regulations. Furthermore, the commission evaluates the impact on existing energy infrastructure and the potential for stranded assets if renewable energy sources become more prevalent or if carbon pricing mechanisms are introduced. The commission’s decision is based on a comprehensive record developed through public hearings, expert testimony, and submissions from interested parties. The ultimate goal is to ensure that new energy infrastructure serves the public interest effectively and efficiently, considering both current needs and future energy landscapes in Idaho.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving new energy generation facilities. When a utility proposes a new power plant, it must demonstrate that the facility is necessary and in the public interest. This involves a rigorous review process, often referred to as a Certificate of Public Convenience and Necessity (CPCN). Idaho Code §62-616 outlines the requirements for obtaining a CPCN, which includes showing that the proposed service or facility is needed, that the applicant is able to provide it, and that it is in the public interest. The IPUC considers factors such as economic feasibility, environmental impact, reliability, and the availability of alternatives. For a new fossil fuel plant, the commission would scrutinize the long-term viability of the fuel source, potential carbon emissions, and compliance with state and federal environmental regulations. Furthermore, the commission evaluates the impact on existing energy infrastructure and the potential for stranded assets if renewable energy sources become more prevalent or if carbon pricing mechanisms are introduced. The commission’s decision is based on a comprehensive record developed through public hearings, expert testimony, and submissions from interested parties. The ultimate goal is to ensure that new energy infrastructure serves the public interest effectively and efficiently, considering both current needs and future energy landscapes in Idaho.
-
Question 15 of 30
15. Question
A regulated electric cooperative in Idaho, serving a significant portion of rural northern Idaho, has filed a formal request with the Idaho Public Utilities Commission (IPUC) to implement a substantial increase in its electricity rates. The cooperative asserts that this increase is critical for funding necessary upgrades to its aging transmission and distribution infrastructure, including the integration of smart grid technologies and the hardening of lines against increasingly severe weather events common in the region. The cooperative’s filing details projected capital expenditures over the next five years and argues that without these investments, service reliability will deteriorate, leading to more frequent and prolonged outages. What is the primary regulatory mechanism the IPUC will employ to evaluate and determine the final approved rate adjustment for this cooperative?
Correct
The Idaho Public Utilities Commission (IPUC) has a mandate to ensure just and reasonable rates for public utilities, which includes considering the cost of service and the public interest. When a utility proposes a rate adjustment, the IPUC undertakes a formal rate case proceeding. This process involves detailed analysis of the utility’s proposed rates, its operating expenses, capital investments, and revenue requirements. The IPUC can approve, deny, or modify the proposed rates. Idaho Code § 61-306 outlines the commission’s authority to set rates that are just and reasonable. Furthermore, Idaho Code § 61-307 requires utilities to provide adequate service. In this scenario, the proposed rate increase is tied to infrastructure upgrades necessary for grid modernization and reliability, aligning with the public interest in stable and modern energy delivery. The IPUC’s role is to balance the utility’s need to recover costs for these essential upgrades with the affordability for consumers. The commission’s decision would be based on evidence presented during the rate case, including economic analyses, engineering reports, and public testimony. The IPUC’s authority to approve, deny, or modify rates is a core function in regulating utility services in Idaho.
Incorrect
The Idaho Public Utilities Commission (IPUC) has a mandate to ensure just and reasonable rates for public utilities, which includes considering the cost of service and the public interest. When a utility proposes a rate adjustment, the IPUC undertakes a formal rate case proceeding. This process involves detailed analysis of the utility’s proposed rates, its operating expenses, capital investments, and revenue requirements. The IPUC can approve, deny, or modify the proposed rates. Idaho Code § 61-306 outlines the commission’s authority to set rates that are just and reasonable. Furthermore, Idaho Code § 61-307 requires utilities to provide adequate service. In this scenario, the proposed rate increase is tied to infrastructure upgrades necessary for grid modernization and reliability, aligning with the public interest in stable and modern energy delivery. The IPUC’s role is to balance the utility’s need to recover costs for these essential upgrades with the affordability for consumers. The commission’s decision would be based on evidence presented during the rate case, including economic analyses, engineering reports, and public testimony. The IPUC’s authority to approve, deny, or modify rates is a core function in regulating utility services in Idaho.
-
Question 16 of 30
16. Question
A private energy cooperative, “Clearwater Power & Light,” proposes to construct a new high-voltage transmission line entirely within the state of Idaho to connect a newly developed geothermal power plant to its existing distribution network. What is the primary regulatory prerequisite that Clearwater Power & Light must satisfy under Idaho law before commencing any physical construction activities for this intrastate transmission line?
Correct
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities within the state, including those involved in the generation, transmission, and distribution of energy. When a utility seeks to construct new facilities, such as a transmission line, it must obtain a certificate of public convenience and necessity from the IPUC. This process involves demonstrating that the proposed facility is necessary for the provision of adequate service, is reasonably required, and will serve the public interest. Idaho Code § 62-121 requires utilities to obtain such a certificate before commencing construction. The commission’s review considers various factors, including environmental impact, economic feasibility, and the impact on existing infrastructure and services. While federal agencies like the Federal Energy Regulatory Commission (FERC) also have jurisdiction over certain aspects of interstate energy transmission, intrastate facilities and the direct siting and public convenience aspects are primarily governed by state-level regulation, in this case, by the IPUC. Therefore, the prerequisite for initiating construction of a new intrastate transmission line in Idaho is the IPUC’s issuance of a certificate of public convenience and necessity.
Incorrect
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities within the state, including those involved in the generation, transmission, and distribution of energy. When a utility seeks to construct new facilities, such as a transmission line, it must obtain a certificate of public convenience and necessity from the IPUC. This process involves demonstrating that the proposed facility is necessary for the provision of adequate service, is reasonably required, and will serve the public interest. Idaho Code § 62-121 requires utilities to obtain such a certificate before commencing construction. The commission’s review considers various factors, including environmental impact, economic feasibility, and the impact on existing infrastructure and services. While federal agencies like the Federal Energy Regulatory Commission (FERC) also have jurisdiction over certain aspects of interstate energy transmission, intrastate facilities and the direct siting and public convenience aspects are primarily governed by state-level regulation, in this case, by the IPUC. Therefore, the prerequisite for initiating construction of a new intrastate transmission line in Idaho is the IPUC’s issuance of a certificate of public convenience and necessity.
-
Question 17 of 30
17. Question
A regional electric cooperative in Idaho is exploring the implementation of a novel time-of-use (TOU) electricity pricing model designed to incentivize off-peak energy consumption among its residential customers. Before rolling out this new pricing structure, what is the legally mandated initial procedural step the cooperative must undertake within the Idaho regulatory framework?
Correct
The Idaho Public Utilities Commission (IPUC) oversees the regulation of public utilities in Idaho, including energy providers. When a utility seeks to implement a new rate structure, such as a time-of-use (TOU) rate, it must file an application with the IPUC. This application is subject to a formal review process, which often involves public hearings, expert testimony, and the submission of detailed evidence regarding the proposed rates’ justification, cost recovery, and impact on consumers. Idaho Code § 61-301 et seq. outlines the general powers and duties of the IPUC, including its authority to fix and regulate rates and services of public utilities. Specifically, Idaho Code § 61-307 requires that all rates be just and reasonable. The process for approving new rates typically involves a notice period to allow for public comment and potential intervention by interested parties, such as consumer advocacy groups or industrial users. The IPUC then evaluates the proposal based on statutory requirements and its own established rules and precedents, considering factors like the utility’s cost of service, the efficiency of the proposed rate design, and its impact on different customer classes. The commission’s decision, whether to approve, deny, or modify the proposed rates, is a formal order that can be appealed. Therefore, the initial step for a utility proposing a new rate structure is to formally file an application with the IPUC for review and approval.
Incorrect
The Idaho Public Utilities Commission (IPUC) oversees the regulation of public utilities in Idaho, including energy providers. When a utility seeks to implement a new rate structure, such as a time-of-use (TOU) rate, it must file an application with the IPUC. This application is subject to a formal review process, which often involves public hearings, expert testimony, and the submission of detailed evidence regarding the proposed rates’ justification, cost recovery, and impact on consumers. Idaho Code § 61-301 et seq. outlines the general powers and duties of the IPUC, including its authority to fix and regulate rates and services of public utilities. Specifically, Idaho Code § 61-307 requires that all rates be just and reasonable. The process for approving new rates typically involves a notice period to allow for public comment and potential intervention by interested parties, such as consumer advocacy groups or industrial users. The IPUC then evaluates the proposal based on statutory requirements and its own established rules and precedents, considering factors like the utility’s cost of service, the efficiency of the proposed rate design, and its impact on different customer classes. The commission’s decision, whether to approve, deny, or modify the proposed rates, is a formal order that can be appealed. Therefore, the initial step for a utility proposing a new rate structure is to formally file an application with the IPUC for review and approval.
-
Question 18 of 30
18. Question
Consider an Idaho electric utility that proposes to enter into a long-term power purchase agreement with a new geothermal energy facility located in the Snake River Plain. The utility did not conduct a competitive bidding process, arguing that the facility’s unique resource characteristics and the developer’s specialized expertise made a competitive solicitation impractical and potentially disadvantageous. What is the primary legal hurdle the utility must overcome to secure approval for this wholesale power purchase agreement from the Idaho Public Utilities Commission, according to Idaho’s regulatory framework for utility contracts?
Correct
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving wholesale power purchase agreements by electric utilities. Idaho Code Section 49-327 outlines the requirements for such approvals, focusing on whether the agreement is in the public interest and meets certain economic and reliability standards. A key aspect is the demonstration that the utility has undertaken a prudent procurement process. This involves showing that the utility solicited competitive bids or, if a sole-source procurement is proposed, that it adequately justified why a competitive process was not feasible or would not yield a better outcome. The commission’s review typically considers factors such as the price of power, the term of the contract, the creditworthiness of the seller, and the impact on customer rates. Furthermore, the IPUC will assess the agreement’s alignment with the state’s energy policies and any integrated resource planning objectives. The burden of proof rests with the utility to demonstrate that the proposed agreement serves the best interests of Idaho ratepayers, considering both cost and reliability. Without a clear and compelling demonstration of prudence and public benefit, the IPUC may deny approval.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving wholesale power purchase agreements by electric utilities. Idaho Code Section 49-327 outlines the requirements for such approvals, focusing on whether the agreement is in the public interest and meets certain economic and reliability standards. A key aspect is the demonstration that the utility has undertaken a prudent procurement process. This involves showing that the utility solicited competitive bids or, if a sole-source procurement is proposed, that it adequately justified why a competitive process was not feasible or would not yield a better outcome. The commission’s review typically considers factors such as the price of power, the term of the contract, the creditworthiness of the seller, and the impact on customer rates. Furthermore, the IPUC will assess the agreement’s alignment with the state’s energy policies and any integrated resource planning objectives. The burden of proof rests with the utility to demonstrate that the proposed agreement serves the best interests of Idaho ratepayers, considering both cost and reliability. Without a clear and compelling demonstration of prudence and public benefit, the IPUC may deny approval.
-
Question 19 of 30
19. Question
Clear Creek Power, an established energy provider operating a series of aging hydroelectric facilities across the Salmon River basin in Idaho, is contemplating the phased decommissioning of its oldest generating station, the Clearwater Dam. This decision is driven by escalating maintenance costs and the facility’s diminished operational efficiency. To proceed with the abandonment and dismantling of the Clearwater Dam, what is the fundamental regulatory prerequisite Clear Creek Power must fulfill under Idaho law to legally cease operations and manage the site’s disposition?
Correct
The question probes the regulatory framework governing the decommissioning of legacy energy infrastructure in Idaho, specifically focusing on the procedural requirements for obtaining approval from the Idaho Public Utilities Commission (IPUC). Idaho Code Title 62, Chapter 6, specifically Section 62-616, outlines the authority of the IPUC concerning the abandonment of public utility property. This statute mandates that a public utility intending to abandon or cease operating any public utility property must obtain a certificate of public convenience and necessity from the commission. The process for obtaining such a certificate involves filing an application that demonstrates the public interest is served by the abandonment, often including plans for decommissioning, environmental mitigation, and financial assurance. The IPUC then reviews this application, which may involve public hearings, to determine whether to grant the certificate. Therefore, the correct procedural step for a utility like Clear Creek Power to decommission its hydroelectric facility in Idaho is to seek this commission approval. Other options are incorrect because while environmental impact assessments are crucial, they are typically part of the application process for the certificate, not a standalone prerequisite for initiating the decommissioning process itself. Direct federal agency approval might be required for certain aspects, but state-level regulatory oversight by the IPUC is paramount for abandonment of utility operations within Idaho. Notification to local stakeholders is a good practice but does not substitute for the formal legal requirement of IPUC certification.
Incorrect
The question probes the regulatory framework governing the decommissioning of legacy energy infrastructure in Idaho, specifically focusing on the procedural requirements for obtaining approval from the Idaho Public Utilities Commission (IPUC). Idaho Code Title 62, Chapter 6, specifically Section 62-616, outlines the authority of the IPUC concerning the abandonment of public utility property. This statute mandates that a public utility intending to abandon or cease operating any public utility property must obtain a certificate of public convenience and necessity from the commission. The process for obtaining such a certificate involves filing an application that demonstrates the public interest is served by the abandonment, often including plans for decommissioning, environmental mitigation, and financial assurance. The IPUC then reviews this application, which may involve public hearings, to determine whether to grant the certificate. Therefore, the correct procedural step for a utility like Clear Creek Power to decommission its hydroelectric facility in Idaho is to seek this commission approval. Other options are incorrect because while environmental impact assessments are crucial, they are typically part of the application process for the certificate, not a standalone prerequisite for initiating the decommissioning process itself. Direct federal agency approval might be required for certain aspects, but state-level regulatory oversight by the IPUC is paramount for abandonment of utility operations within Idaho. Notification to local stakeholders is a good practice but does not substitute for the formal legal requirement of IPUC certification.
-
Question 20 of 30
20. Question
Consider a scenario where the Boise GeoEnergy Cooperative, a regulated public utility in Idaho, proposes to construct a new geothermal power generation facility. This project is intended to significantly alter its wholesale electricity supply and, consequently, its proposed rate structure for member distribution cooperatives. What is the primary regulatory mechanism through which the Idaho Public Utilities Commission would scrutinize and approve or deny this proposed change in service and rates, ensuring it aligns with the public interest and the cooperative’s financial prudence?
Correct
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities, including those involved in energy generation and distribution within the state. When a utility proposes a significant change in its rate structure or service offerings, such as the construction of a new geothermal power plant that would alter the wholesale electricity prices for distribution cooperatives, the IPUC conducts a formal review process. This process, often initiated by a utility filing a “rate case” or a petition for a “certificate of public convenience and necessity,” involves public hearings, expert testimony, and the submission of detailed financial and operational data. The commission’s decision must be based on evidence presented during these proceedings and must consider the public interest, the financial health of the utility, and the impact on consumers. Specifically, under Idaho Code Title 61, Chapter 5, the IPUC evaluates whether proposed changes are just and reasonable. The construction of a new, large-scale geothermal facility, as proposed by the hypothetical “Boise GeoEnergy Cooperative,” would necessitate a thorough examination of its economic viability, environmental impact, and its effect on the cost of service for the cooperative’s members. The IPUC’s role is to ensure that such investments are prudent and that the resulting rates reflect the actual cost of providing service, as well as to consider the broader energy landscape of Idaho, including the state’s renewable energy goals and existing infrastructure. The commission’s final order would either approve, deny, or modify the proposed changes based on this comprehensive review.
Incorrect
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities, including those involved in energy generation and distribution within the state. When a utility proposes a significant change in its rate structure or service offerings, such as the construction of a new geothermal power plant that would alter the wholesale electricity prices for distribution cooperatives, the IPUC conducts a formal review process. This process, often initiated by a utility filing a “rate case” or a petition for a “certificate of public convenience and necessity,” involves public hearings, expert testimony, and the submission of detailed financial and operational data. The commission’s decision must be based on evidence presented during these proceedings and must consider the public interest, the financial health of the utility, and the impact on consumers. Specifically, under Idaho Code Title 61, Chapter 5, the IPUC evaluates whether proposed changes are just and reasonable. The construction of a new, large-scale geothermal facility, as proposed by the hypothetical “Boise GeoEnergy Cooperative,” would necessitate a thorough examination of its economic viability, environmental impact, and its effect on the cost of service for the cooperative’s members. The IPUC’s role is to ensure that such investments are prudent and that the resulting rates reflect the actual cost of providing service, as well as to consider the broader energy landscape of Idaho, including the state’s renewable energy goals and existing infrastructure. The commission’s final order would either approve, deny, or modify the proposed changes based on this comprehensive review.
-
Question 21 of 30
21. Question
Consider a hypothetical scenario where a renewable energy developer proposes to construct a 150-megawatt solar photovoltaic generation facility in rural Ada County, Idaho. What is the primary regulatory mechanism under Idaho law that this developer must navigate to secure approval for the facility’s location and construction, ensuring compliance with state energy policy and public interest considerations?
Correct
The question concerns the process by which a new electricity generation facility, specifically a solar photovoltaic farm, can obtain the necessary siting and operational approvals within Idaho. Idaho Code Title 61, Chapter 17, specifically the Siting of Energy Products Pipelines and Production Facilities Act, governs the siting of such facilities. For a new electric generation facility with a nameplate capacity exceeding a certain threshold (often defined by statute or rule, but the principle is that significant facilities are covered), a certificate of public convenience and necessity (CPCN) is generally required from the Idaho Public Utilities Commission (IPUC). This process involves a formal application, public notice, evidentiary hearings, and a decision by the Commission that weighs factors such as public need, environmental impact, economic benefits, and conformity with state energy policies. While local zoning ordinances are relevant and must be considered, the overarching state-level approval for the siting of major energy facilities is the CPCN. Other options are less accurate or incomplete. Obtaining a permit from the U.S. Army Corps of Engineers might be necessary if federal wetlands are impacted, but it’s not the primary siting approval. Filing a notice of intent with the Idaho Department of Environmental Quality is part of environmental permitting but not the core siting approval. Negotiating power purchase agreements with utilities is a commercial aspect, not a regulatory siting requirement. Therefore, securing a CPCN from the IPUC is the fundamental regulatory step for siting a large-scale energy generation facility in Idaho.
Incorrect
The question concerns the process by which a new electricity generation facility, specifically a solar photovoltaic farm, can obtain the necessary siting and operational approvals within Idaho. Idaho Code Title 61, Chapter 17, specifically the Siting of Energy Products Pipelines and Production Facilities Act, governs the siting of such facilities. For a new electric generation facility with a nameplate capacity exceeding a certain threshold (often defined by statute or rule, but the principle is that significant facilities are covered), a certificate of public convenience and necessity (CPCN) is generally required from the Idaho Public Utilities Commission (IPUC). This process involves a formal application, public notice, evidentiary hearings, and a decision by the Commission that weighs factors such as public need, environmental impact, economic benefits, and conformity with state energy policies. While local zoning ordinances are relevant and must be considered, the overarching state-level approval for the siting of major energy facilities is the CPCN. Other options are less accurate or incomplete. Obtaining a permit from the U.S. Army Corps of Engineers might be necessary if federal wetlands are impacted, but it’s not the primary siting approval. Filing a notice of intent with the Idaho Department of Environmental Quality is part of environmental permitting but not the core siting approval. Negotiating power purchase agreements with utilities is a commercial aspect, not a regulatory siting requirement. Therefore, securing a CPCN from the IPUC is the fundamental regulatory step for siting a large-scale energy generation facility in Idaho.
-
Question 22 of 30
22. Question
Consider a scenario where an electric cooperative in Idaho, operating under the jurisdiction of the Idaho Public Utilities Commission (IPUC), proposes to implement a novel time-of-use (TOU) pricing structure for its residential customers. This new structure aims to incentivize off-peak electricity consumption by significantly increasing per-kilowatt-hour charges during peak demand periods and substantially decreasing them during off-peak periods. What is the primary legal and regulatory mechanism through which the IPUC would evaluate and potentially approve or deny this proposed rate change, ensuring compliance with Idaho’s energy regulations and consumer protection mandates?
Correct
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities, including those involved in energy generation, transmission, and distribution. When a utility proposes a significant change in its rate structure or service offerings that could impact consumers, the IPUC is mandated to conduct a thorough review. This review process typically involves public hearings, expert testimony, and the examination of financial data and operational plans. The goal is to ensure that rates are just and reasonable and that service is adequate, efficient, and safe, all while allowing the utility a reasonable opportunity to earn a fair rate of return on its investment. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities and outlines the procedures for rate cases and other significant regulatory actions. The IPUC’s decisions are guided by principles of consumer protection, economic efficiency, and the long-term viability of utility services within the state. A utility seeking to implement a new demand-response program that alters pricing based on real-time grid conditions would fall under this regulatory oversight. The commission’s review would assess the program’s technical feasibility, economic benefits to all customer classes, and compliance with existing statutes and rules governing utility operations and consumer billing.
Incorrect
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities, including those involved in energy generation, transmission, and distribution. When a utility proposes a significant change in its rate structure or service offerings that could impact consumers, the IPUC is mandated to conduct a thorough review. This review process typically involves public hearings, expert testimony, and the examination of financial data and operational plans. The goal is to ensure that rates are just and reasonable and that service is adequate, efficient, and safe, all while allowing the utility a reasonable opportunity to earn a fair rate of return on its investment. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities and outlines the procedures for rate cases and other significant regulatory actions. The IPUC’s decisions are guided by principles of consumer protection, economic efficiency, and the long-term viability of utility services within the state. A utility seeking to implement a new demand-response program that alters pricing based on real-time grid conditions would fall under this regulatory oversight. The commission’s review would assess the program’s technical feasibility, economic benefits to all customer classes, and compliance with existing statutes and rules governing utility operations and consumer billing.
-
Question 23 of 30
23. Question
Consider a scenario where an energy cooperative in northern Idaho proposes to build a new biomass facility utilizing forest residues from nearby timber operations. The cooperative submits an application to the Idaho Public Utilities Commission (IPUC) for a certificate to proceed. Which of the following best describes the primary legal and regulatory basis for the IPUC’s review and potential approval or denial of this proposed biomass facility, as per Idaho energy law?
Correct
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities, including those involved in energy generation and distribution within the state. When a utility seeks to construct new energy infrastructure, such as a geothermal power plant in a geologically active region of Idaho, it must undergo a rigorous certification process. This process, often referred to as a “” (certificate of need or public convenience and necessity), ensures that the proposed project is indeed necessary for the public good, economically viable, and environmentally sound. Idaho Code Title 61, Chapter 5, specifically addresses the powers and duties of the IPUC concerning the regulation of public utilities and their facilities. The application for a certificate involves demonstrating public need, outlining the project’s benefits, detailing its environmental impact, and providing financial projections. The IPUC then reviews this application, often holding public hearings to gather input from affected stakeholders, including local communities, environmental groups, and other utilities. The commission’s decision hinges on whether the proposed facility serves the public interest, considering factors like reliability, affordability, and sustainability of energy supply. The regulatory framework in Idaho emphasizes a balance between promoting energy development and protecting consumer interests and the environment.
Incorrect
The Idaho Public Utilities Commission (IPUC) has the authority to regulate public utilities, including those involved in energy generation and distribution within the state. When a utility seeks to construct new energy infrastructure, such as a geothermal power plant in a geologically active region of Idaho, it must undergo a rigorous certification process. This process, often referred to as a “” (certificate of need or public convenience and necessity), ensures that the proposed project is indeed necessary for the public good, economically viable, and environmentally sound. Idaho Code Title 61, Chapter 5, specifically addresses the powers and duties of the IPUC concerning the regulation of public utilities and their facilities. The application for a certificate involves demonstrating public need, outlining the project’s benefits, detailing its environmental impact, and providing financial projections. The IPUC then reviews this application, often holding public hearings to gather input from affected stakeholders, including local communities, environmental groups, and other utilities. The commission’s decision hinges on whether the proposed facility serves the public interest, considering factors like reliability, affordability, and sustainability of energy supply. The regulatory framework in Idaho emphasizes a balance between promoting energy development and protecting consumer interests and the environment.
-
Question 24 of 30
24. Question
Consider a proposed geothermal power generation facility situated on federal land within the state of Idaho. Which governmental entity, or combination thereof, would hold the primary regulatory authority for the initial leasing and development rights of the geothermal resource itself, in accordance with Idaho’s energy law landscape and applicable federal statutes?
Correct
The question concerns the regulatory framework for geothermal energy development in Idaho, specifically addressing the interplay between state and federal authority. Idaho Code §42-2001 et seq. governs geothermal resources within the state, granting the Idaho Department of Water Resources (IDWR) primary jurisdiction over their appropriation and utilization. However, federal lands, which are prevalent in Idaho, are managed under federal law, primarily the Geothermal Steam Act of 1973 (30 U.S.C. §1001 et seq.). This federal act vests the Secretary of the Interior, through the Bureau of Land Management (BLM), with authority over geothermal leasing and development on federal lands. Therefore, a geothermal project on federal land in Idaho requires compliance with both federal leasing and environmental review processes administered by the BLM and state permitting and water rights administration handled by the IDWR. The Idaho Public Utilities Commission (IPUC) plays a role in regulating the rates and services of public utilities, including those that might utilize geothermal power, but its authority is distinct from the initial resource development permitting. The Idaho Department of Environmental Quality (IDEQ) is responsible for environmental protection standards, which are integrated into both federal and state permitting processes, but the primary jurisdictional authority for the geothermal resource itself on federal land rests with the federal government.
Incorrect
The question concerns the regulatory framework for geothermal energy development in Idaho, specifically addressing the interplay between state and federal authority. Idaho Code §42-2001 et seq. governs geothermal resources within the state, granting the Idaho Department of Water Resources (IDWR) primary jurisdiction over their appropriation and utilization. However, federal lands, which are prevalent in Idaho, are managed under federal law, primarily the Geothermal Steam Act of 1973 (30 U.S.C. §1001 et seq.). This federal act vests the Secretary of the Interior, through the Bureau of Land Management (BLM), with authority over geothermal leasing and development on federal lands. Therefore, a geothermal project on federal land in Idaho requires compliance with both federal leasing and environmental review processes administered by the BLM and state permitting and water rights administration handled by the IDWR. The Idaho Public Utilities Commission (IPUC) plays a role in regulating the rates and services of public utilities, including those that might utilize geothermal power, but its authority is distinct from the initial resource development permitting. The Idaho Department of Environmental Quality (IDEQ) is responsible for environmental protection standards, which are integrated into both federal and state permitting processes, but the primary jurisdictional authority for the geothermal resource itself on federal land rests with the federal government.
-
Question 25 of 30
25. Question
A regulated electric utility operating solely within Idaho, “Clearwater Power Co.,” proposes a significant revision to its rate structure, aiming to shift a greater portion of its fixed costs to the residential customer class and reduce the per-kilowatt-hour charge for large industrial users. This proposal stems from an analysis indicating that residential customers have a lower price elasticity of demand compared to industrial customers. Under Idaho law, what is the primary procedural hurdle Clearwater Power Co. must overcome to implement these rate changes, and what is the overarching principle guiding the Idaho Public Utilities Commission’s (IPUC) review of such a proposal?
Correct
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving changes to utility rate structures, particularly when they impact the cost of service for different customer classes. Idaho Code § 61-307 outlines the general authority of the IPUC to supervise and regulate public utilities. When a utility proposes a rate increase or a change in rate design, it must file an application with the IPUC. This application typically includes detailed cost-of-service studies, revenue requirement calculations, and proposed rate schedules. The IPUC then initiates a formal proceeding, often called a rate case. During this proceeding, the IPUC staff, intervenes, and other interested parties can examine the utility’s evidence, present their own analyses, and participate in hearings. The commission’s decision is based on whether the proposed rates are just and reasonable, and whether the utility is recovering its costs efficiently while ensuring that no customer class is unfairly burdened. The IPUC’s authority extends to ensuring that rate changes are not discriminatory and are supported by adequate evidence demonstrating the necessity and fairness of the adjustments. The process emphasizes transparency and public participation, allowing stakeholders to voice concerns and present alternative proposals. The ultimate goal is to balance the utility’s need to earn a fair rate of return with the public’s interest in affordable and reliable service.
Incorrect
The Idaho Public Utilities Commission (IPUC) has specific procedures for approving changes to utility rate structures, particularly when they impact the cost of service for different customer classes. Idaho Code § 61-307 outlines the general authority of the IPUC to supervise and regulate public utilities. When a utility proposes a rate increase or a change in rate design, it must file an application with the IPUC. This application typically includes detailed cost-of-service studies, revenue requirement calculations, and proposed rate schedules. The IPUC then initiates a formal proceeding, often called a rate case. During this proceeding, the IPUC staff, intervenes, and other interested parties can examine the utility’s evidence, present their own analyses, and participate in hearings. The commission’s decision is based on whether the proposed rates are just and reasonable, and whether the utility is recovering its costs efficiently while ensuring that no customer class is unfairly burdened. The IPUC’s authority extends to ensuring that rate changes are not discriminatory and are supported by adequate evidence demonstrating the necessity and fairness of the adjustments. The process emphasizes transparency and public participation, allowing stakeholders to voice concerns and present alternative proposals. The ultimate goal is to balance the utility’s need to earn a fair rate of return with the public’s interest in affordable and reliable service.
-
Question 26 of 30
26. Question
A privately held renewable energy cooperative in Idaho, which has been a sole provider of electricity to a remote rural community for the past two decades, now wishes to divest its entire operational infrastructure, including its sole generation facility and transmission lines, to a new, out-of-state energy development firm. This firm intends to repurpose the generation facility for a different industrial use and cease providing electricity to the existing community. What is the primary legal prerequisite under Idaho energy law that the cooperative must satisfy before this transaction can be considered legally valid?
Correct
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities in Idaho, including those involved in energy generation, transmission, and distribution. When a utility seeks to abandon or sell significant assets, especially those integral to its service provision, the IPUC’s oversight is crucial. Idaho Code § 61-329 mandates that no public utility shall sell, lease, assign, mortgage, or otherwise dispose of or encumber the whole or any part of its capital stock, or any of its property, real or personal, essential or necessary to the transaction of its business as a public utility, without the consent and approval of the commission. This is to ensure that such actions do not adversely affect the public interest, the utility’s ability to provide reliable service, or the reasonableness of rates. The process typically involves a formal application, public notice, opportunity for intervention by interested parties, and a commission hearing to evaluate the proposed transaction’s impact on consumers and the state’s energy infrastructure. Therefore, seeking IPUC approval is a mandatory prerequisite for the lawful disposition of such assets.
Incorrect
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities in Idaho, including those involved in energy generation, transmission, and distribution. When a utility seeks to abandon or sell significant assets, especially those integral to its service provision, the IPUC’s oversight is crucial. Idaho Code § 61-329 mandates that no public utility shall sell, lease, assign, mortgage, or otherwise dispose of or encumber the whole or any part of its capital stock, or any of its property, real or personal, essential or necessary to the transaction of its business as a public utility, without the consent and approval of the commission. This is to ensure that such actions do not adversely affect the public interest, the utility’s ability to provide reliable service, or the reasonableness of rates. The process typically involves a formal application, public notice, opportunity for intervention by interested parties, and a commission hearing to evaluate the proposed transaction’s impact on consumers and the state’s energy infrastructure. Therefore, seeking IPUC approval is a mandatory prerequisite for the lawful disposition of such assets.
-
Question 27 of 30
27. Question
Consider a scenario where a privately owned hydroelectric power generation facility, which has been supplying electricity to a rural cooperative in northern Idaho for several decades, announces its intention to cease operations due to aging infrastructure and escalating maintenance costs. The cooperative relies heavily on this facility for a significant portion of its power supply. Under Idaho law, what is the primary regulatory hurdle the facility owner must overcome before permanently shutting down operations and decommissioning the plant?
Correct
The Idaho Public Utilities Commission (IPUC) plays a crucial role in regulating public utilities, including those involved in energy generation and distribution within Idaho. When a utility proposes a significant change in its service territory or seeks to abandon a facility that provides essential services, the Commission’s oversight is paramount. Idaho Code Section 61-331 outlines the requirements for obtaining a certificate of public convenience and necessity for new construction or extensions of utility service. Conversely, Idaho Code Section 61-332 addresses the abandonment of service or facilities. This section mandates that a utility must secure approval from the IPUC before ceasing operations or abandoning any part of its utility plant that provides service. The rationale behind this requirement is to ensure that the public interest is protected, preventing situations where essential services are abruptly terminated without adequate alternatives or proper transition planning. Failure to obtain such approval can result in penalties and directives from the Commission to continue service or mitigate the impact of abandonment. Therefore, any utility contemplating the closure of a power generation facility within Idaho must navigate the regulatory framework established by the IPUC, specifically concerning the abandonment of service under Idaho Code Section 61-332, to ensure compliance and protect consumer welfare.
Incorrect
The Idaho Public Utilities Commission (IPUC) plays a crucial role in regulating public utilities, including those involved in energy generation and distribution within Idaho. When a utility proposes a significant change in its service territory or seeks to abandon a facility that provides essential services, the Commission’s oversight is paramount. Idaho Code Section 61-331 outlines the requirements for obtaining a certificate of public convenience and necessity for new construction or extensions of utility service. Conversely, Idaho Code Section 61-332 addresses the abandonment of service or facilities. This section mandates that a utility must secure approval from the IPUC before ceasing operations or abandoning any part of its utility plant that provides service. The rationale behind this requirement is to ensure that the public interest is protected, preventing situations where essential services are abruptly terminated without adequate alternatives or proper transition planning. Failure to obtain such approval can result in penalties and directives from the Commission to continue service or mitigate the impact of abandonment. Therefore, any utility contemplating the closure of a power generation facility within Idaho must navigate the regulatory framework established by the IPUC, specifically concerning the abandonment of service under Idaho Code Section 61-332, to ensure compliance and protect consumer welfare.
-
Question 28 of 30
28. Question
A nascent geothermal energy cooperative, “Boise Basin Geothermal,” has successfully developed a new power generation facility in southwestern Idaho. To secure stable revenue and facilitate project financing, the cooperative proposes to enter into a twenty-year exclusive power purchase agreement (PPA) with “Gem State Power,” a vertically integrated, investor-owned electric utility regulated by the Idaho Public Utilities Commission (IPUC). Under this PPA, Boise Basin Geothermal would sell its entire output to Gem State Power. What is the primary regulatory hurdle Boise Basin Geothermal must overcome with the IPUC for this PPA to be legally binding and effective?
Correct
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities operating within the state, including those involved in energy generation and distribution. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities. Section 62-620 grants the IPUC the power to prescribe rules and regulations for the operation of utilities, including setting reasonable rates and charges, ensuring adequate service, and approving the issuance of securities. When a utility proposes a significant change in its operational structure or seeks to enter into a substantial financial agreement that could impact its ability to serve the public, such as acquiring a new power generation facility or entering into a long-term power purchase agreement, it typically requires prior approval from the IPUC. This approval process is designed to protect the public interest by ensuring that such actions are prudent, financially sound, and ultimately beneficial or at least not detrimental to utility customers. The commission’s review often involves a detailed examination of the proposed transaction’s economic feasibility, its impact on rates, and its alignment with the state’s energy policy objectives. Therefore, a geothermal power plant developer in Idaho intending to sell all of its generated electricity under a long-term contract to a regulated electric utility must seek IPUC approval for this arrangement to ensure it meets regulatory standards and is in the public interest.
Incorrect
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities operating within the state, including those involved in energy generation and distribution. Idaho Code Title 62, Chapter 6, specifically addresses the regulation of public utilities. Section 62-620 grants the IPUC the power to prescribe rules and regulations for the operation of utilities, including setting reasonable rates and charges, ensuring adequate service, and approving the issuance of securities. When a utility proposes a significant change in its operational structure or seeks to enter into a substantial financial agreement that could impact its ability to serve the public, such as acquiring a new power generation facility or entering into a long-term power purchase agreement, it typically requires prior approval from the IPUC. This approval process is designed to protect the public interest by ensuring that such actions are prudent, financially sound, and ultimately beneficial or at least not detrimental to utility customers. The commission’s review often involves a detailed examination of the proposed transaction’s economic feasibility, its impact on rates, and its alignment with the state’s energy policy objectives. Therefore, a geothermal power plant developer in Idaho intending to sell all of its generated electricity under a long-term contract to a regulated electric utility must seek IPUC approval for this arrangement to ensure it meets regulatory standards and is in the public interest.
-
Question 29 of 30
29. Question
Consider a scenario where a major electric cooperative, operating under Idaho Public Utilities Commission (IPUC) jurisdiction, plans to construct a new geothermal power generation facility in southern Idaho to meet increasing demand. This facility is projected to have a significant impact on the regional grid and the cooperative’s rate structure. What is the essential regulatory authorization required from the IPUC before the cooperative can legally commence the physical construction of this new power generation plant?
Correct
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities operating within the state, including those involved in energy generation, transmission, and distribution. This authority is primarily derived from Idaho Code Title 62, Chapter 13, which governs public utilities. When a utility proposes a significant change to its service, such as the construction of a new major power plant or transmission line, it must obtain a “certificate of public convenience and necessity” from the IPUC. This process involves a detailed review to ensure the proposed project is necessary, in the public interest, and that the utility has the financial and technical capacity to complete it. The IPUC’s review considers factors like economic feasibility, environmental impact, reliability of service, and the potential impact on existing infrastructure and consumers. Without this certificate, a utility cannot legally undertake such a project. Therefore, the prerequisite for a utility to commence construction of a new, large-scale energy generation facility in Idaho, impacting the public interest, is the acquisition of this specific authorization from the IPUC.
Incorrect
The Idaho Public Utilities Commission (IPUC) has broad authority over public utilities operating within the state, including those involved in energy generation, transmission, and distribution. This authority is primarily derived from Idaho Code Title 62, Chapter 13, which governs public utilities. When a utility proposes a significant change to its service, such as the construction of a new major power plant or transmission line, it must obtain a “certificate of public convenience and necessity” from the IPUC. This process involves a detailed review to ensure the proposed project is necessary, in the public interest, and that the utility has the financial and technical capacity to complete it. The IPUC’s review considers factors like economic feasibility, environmental impact, reliability of service, and the potential impact on existing infrastructure and consumers. Without this certificate, a utility cannot legally undertake such a project. Therefore, the prerequisite for a utility to commence construction of a new, large-scale energy generation facility in Idaho, impacting the public interest, is the acquisition of this specific authorization from the IPUC.
-
Question 30 of 30
30. Question
Consider a scenario where an electric cooperative operating within Idaho proposes a novel time-of-use (TOU) rate structure for its residential customers, aiming to incentivize off-peak energy consumption and better align costs with demand. Following the submission of their application to the Idaho Public Utilities Commission (IPUC), what is the primary legal and regulatory framework that governs the IPUC’s evaluation and potential approval of this proposed rate change, ensuring both utility viability and consumer protection under Idaho law?
Correct
The Idaho Public Utilities Commission (IPUC) oversees the regulation of public utilities in Idaho, including those involved in energy. When a utility seeks to implement a new rate structure or a significant change to an existing one, it must file an application with the IPUC. This application is subject to a thorough review process. Idaho Code § 61-301 mandates that utilities must obtain a certificate of public convenience and necessity before constructing or operating new facilities that would serve the public. Furthermore, Idaho Code § 61-501 requires that all rates and charges be just and reasonable. The process for approving rate changes typically involves public hearings, expert testimony from both the utility and intervenors (such as consumer advocacy groups or industrial users), and an analysis of the utility’s cost of service, proposed revenue requirements, and the impact on different customer classes. The IPUC’s decision is based on whether the proposed rates are just, reasonable, and not unduly discriminatory, considering the financial health of the utility and the affordability for consumers. The commission’s authority extends to ensuring that rate designs encourage efficient energy use and do not create undue burdens on specific customer segments. The public interest is a paramount consideration throughout this regulatory process.
Incorrect
The Idaho Public Utilities Commission (IPUC) oversees the regulation of public utilities in Idaho, including those involved in energy. When a utility seeks to implement a new rate structure or a significant change to an existing one, it must file an application with the IPUC. This application is subject to a thorough review process. Idaho Code § 61-301 mandates that utilities must obtain a certificate of public convenience and necessity before constructing or operating new facilities that would serve the public. Furthermore, Idaho Code § 61-501 requires that all rates and charges be just and reasonable. The process for approving rate changes typically involves public hearings, expert testimony from both the utility and intervenors (such as consumer advocacy groups or industrial users), and an analysis of the utility’s cost of service, proposed revenue requirements, and the impact on different customer classes. The IPUC’s decision is based on whether the proposed rates are just, reasonable, and not unduly discriminatory, considering the financial health of the utility and the affordability for consumers. The commission’s authority extends to ensuring that rate designs encourage efficient energy use and do not create undue burdens on specific customer segments. The public interest is a paramount consideration throughout this regulatory process.