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H 395

PUBLIC UTILITIES – Adds to existing law to provide for competitive procurement of electric services and electric ratepayer protection.

68th Legislature, 1st Regular Session (2025)

Idaho H 395: new large loads 30 MW/12 months must pay all incremental generation and facilities costs; allows competitive supply; costs recovered only from load-causing customer.

Introduced, read first time; referred to: State Affairs
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Bill Summary · H 395

Summary — H 395 (2025): Competitive Procurement and Electric Ratepayer Protection

Purpose

H 395 adds a new Section 61-335 to Chapter 3, Title 61, Idaho Code to (1) require that very large new electricity loads pay the full cost of the incremental generation and related facilities they cause, (2) enable competitive procurement of supply for those loads, and (3) prevent cost-shifting of those incremental costs onto other utility customers. The bill’s stated intent is to ensure entities that cause new generation needs pay those costs so general ratepayers are not burdened.

Key provisions

  • Adds new Section 61-335, Idaho Code (Competitive Procurement and Ratepayer Protection).
  • Definition: "New large load" — any service entrance (new, existing, or expanded) that increases power requirements by 30 megawatts (MW) or more in any consecutive 12‑month period. (Note: an amendment increased the threshold from 10 MW to 30 MW.)
  • Cost responsibility: A public utility may not serve a new large load from its existing resources or from resources planned/anticipated to serve the general body of ratepayers within 10 years of the new load’s initial service date.
  • Cost recovery: Costs associated with serving the new large load (including cost of capital, generation, transmission, distribution, and customer-related costs) may be recovered only from the customer that creates the new large load — not from other utility ratepayers.
  • Competitive procurement: A new large load customer may obtain all or part of its electric service from a third party instead of the incumbent public utility (consistent with the Electric Supplier Stabilization Act). The incumbent utility must make transmission, distribution, and delivery facilities available at cost to accommodate competitively procured supply.
  • Anti-evasion: Load cannot be reclassified by artificial measures (e.g., splitting load across connections/meters) to avoid the new large load designation.
  • Oversight and dispute resolution: The Idaho Public Utilities Commission may adopt rules (subject to legislative approval) to implement the section and has jurisdiction to resolve disputes arising under it.
  • Clarification: Providing service under this section does not constitute granting preference or creating unreasonable differences in rates or services.
  • Emergency clause: the act is effective July 1, 2025.

Who is affected

  • Large electric consumers (industrial/commercial) whose new or expanded demand meets or exceeds 30 MW within 12 months.
  • Regulated public utilities (incumbent electric utilities) — impacts planning, resource allocation, cost recovery practices and tariffs.
  • Other utility customers/ratepayers — protected from being charged for costs caused by new large loads.
  • Third‑party generators, power marketers, and retail suppliers — may gain opportunities to serve large loads using incumbent utility delivery facilities.
  • Idaho Public Utilities Commission — rulemaking and dispute resolution responsibilities.

Procedural status & fiscal note

  • Introduced March 10, 2025. House passed (March 26, 2025) by recorded vote 62–8. Referred to State Affairs (and transmitted to the Senate).
  • Fiscal note: bill reported to have no fiscal impact on state or local government revenues or expenditures.
  • Effective date: July 1, 2025 (emergency provision).

Potential impacts and considerations

  • Shifts incremental generation and related capital cost risk onto the new large load customer or its third‑party supplier, reducing cross-subsidization by existing ratepayers.
  • May encourage third‑party power procurement, direct contracts, or on-site generation for qualifying large customers.
  • Could require utilities to change planning and tariff rules, and the Commission to adopt implementing rules and adjudicate disputes.
  • The 30 MW threshold (amendment) narrows scope compared to the bill’s original 10 MW threshold, limiting application to larger loads.

Compiled from official sources — confirm details with the bill’s official record.

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