IdahoUtilities must protect ratepayers when serving very large electric loads
Beginning July 1, 2026, very large electricity users would need approved utility contracts and would have to cover the full costs of serving them.
What it does
Starting July 1, 2026, utilities may serve electricity users adding at least 50 megawatts only under commission-approved contracts that protect service quality and make the user pay its full costs.
Approval must be conditioned on financial security from the large electricity user, helping protect utilities and other customers if expected demand does not materialize.
During each utility rate case, regulators must check that approved large loads pay their full costs and may adjust charges or require safeguards to limit effects on other customers.
Argument forRequiring large electricity users to pay costs caused by their demand could reduce the risk that existing customers pay for unused infrastructure.
Argument againstThe approval process and financial-security requirement could delay or increase the cost of building facilities that need very large amounts of electricity.
More detail
A public utility must provide electricity to a new large load only under a service contract approved by the commission. A new large load is a new or changed service entrance that raises contracted demand by at least 50 megawatts within any consecutive 60-month period and has a utility service contract entered on or after July 1, 2026. The utility must file the contract before providing service and include an assessment of its effect on existing customers' rates. The commission must approve the contract only if service quality and reliability are expected to remain at least as high as they otherwise would have been. The large load must pay its full service costs, including infrastructure costs needed because of that load. A large load may not avoid these rules by splitting one enterprise's demand among multiple connections, meters, or service entrances. These requirements apply on and after July 1, 2026, to service contracts entered into on or after that date. The commission must approve or deny a filed contract within 270 days after receiving it.
The commission must require an approved new-large-load contract to include financial security. The security comes from the large electricity user and protects the utility and its other customers from costs tied to the user's contracted demand. The commission decides the form and amount of the security. The security must reasonably protect against stranded costs, unrecovered costs, and investments the utility makes in reliance on the user's contracted power requirement. The security requirement applies as a condition of approving the service contract on and after July 1, 2026.
The commission must review approved large-load contracts in each utility rate case and may adjust related rates, charges, or cost-recovery rules. The review covers rates and cost-recovery methods for approved new-large-load service contracts and aims to assign the large load its full service cost. The commission must issue guidance or other requirements to help prevent higher rates for the utility's other customers. The commission may resolve disputes arising under these provisions. Providing service under this section does not establish an unlawful preference, disadvantage, or unreasonable difference in rates or services. Rate review occurs in each general rate case filed by the utility after the contract is approved. The implementation and dispute provisions apply on and after July 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 2Reported Signed by Governor Brad Little on April 10, 2026 Session Law Chapter 335 Effective: 07/01/2026Became Law
- Apr 1Delivered to Governor at 12:50 p.m. on April 1, 2026To Governor
- Apr 1Returned Signed by the President; Ordered Transmitted to GovernorMinor
- Mar 31Signed by President; returned to HouseMajor
- Mar 31Received from the House enrolled/signed by SpeakerMajor
- Mar 31Reported Enrolled; Signed by Speaker; Transmitted to SenateMajor
- Mar 31Returned from Senate Passed; to JRA for EnrollingMinor
- Mar 30Read third time in full – PASSED - 34-1-0AYES – Adams, Anthon, Bernt, Bjerke(Bjerke), Blaylock, Burtenshaw, Carlson, Cook, Den Hartog, Foreman, Galloway, Grow, Guthrie, Harris, Hart, Keyser, Kohl, Lakey, Lent, Nichols, Okuniewicz, Rabe, Ricks, Ruchti, Semmelroth, Shippy, Taylor, Toews, VanOrden, Ward-Engelking, Wintrow, Woodward, Zito, ZuiderveldNAYS – LenneyAbsent and excused – NoneFloor Sponsor - GuthrieTitle apvd - to HousePassed 2nd Chamber
- Vote recorded Read third time in full –. Result: pass.Upper
- Mar 26Read second time; filed for Third ReadingMinor
- Mar 25Reported out of Committee with Do Pass Recommendation; Filed for second readingMinor
- Mar 23Introduced, read first time; referred to: State AffairsMinor
- Mar 23Received from the House passed; filed for first reading
- Mar 20Rules Suspended: Ayes 70 Nays 0 Abs/Excd 0, read in full as required – PASSED - 65-3-2AYES – Barbieri, Beiswenger, Berch, Bingham, Boyle, Bruce, Burgoyne, Cannon, Cayler, Cheatum, Church, Cornilles, Crane(12), Crane(13), Dygert, Egbert, Ehardt, Ehlers, Erickson, Fuhriman, Furniss, Galaviz, Gannon, Garner, Green, Hall(Stone), Handy, Harris, Haws, Healey, Holtzclaw, Hostetler, Leavitt, Manwaring, Marmon, Mathias, McCann, Mendive, Mickelsen, Miller, Mitchell, Monks, Nelsen, Palmer, Petzke, Pickett, Pohanka, Price, Raybould, Raymond, Redman, Rubel, Sauter, Scott, Shepherd, Shirts, Skaug, Tanner(14), Thompson, Vander Woude, Veile, Weber, Wheeler, Wisniewski, Mr. SpeakerNAYS – Hawkins, Rasor, Tanner(13)Absent – Alfieri, HillFloor Sponsor - VeileTitle apvd - to SenatePassed 1st Chamber
- Vote recorded Rules Suspended: Ayes 70 Nays 0 Abs/Excd 0, read in full as required –. Result: pass.Lower
- Mar 20Read second time; Filed for Third ReadingMinor
- Mar 19Reported out of Committee with Do Pass Recommendation, Filed for Second ReadingMinor
- Mar 17Reported Printed and Referred to State Affairs
- Mar 17Introduced, read first time, referred to JRA for PrintingIntroduced
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