Dive Brief:

• Idaho regulators granted Idaho Power a permit to spend $130 million on a pollution control project, but declined to guarantee that the utility could recover the investment in its electric rates.
• Environmental groups wanted the Idaho Public Utilities Commission (PUC) to deny the permit and instead require Idaho Power to replace the two units at the Jim Bridger plant in Wyoming with 350 MW from renewable sources of energy efficiency programs. The PUC said the proposal wasn't realistic.
• The upgrades at the plant, majority owned by PacifiCorp, are needed to comply with the Clean Air Act's regional haze rules.

Dive Insight:

The PUC gave Idaho Power permission for the pollution control project, but will the utility risk spending $130 million if it is unclear that those costs can be recouped in rates?

“Because of the uncertain future of coal-fired generation, we find it unreasonable to prematurely commit ratepayer dollars to support Idaho Power’s investment,” the commission said. Approval of such treatment would provide the company with economic, social and political assurance it seeks, while leaving ratepayers to “bear the risk of environmental uncertainties,” the commission said.