Bill Description: House Bill 348 would require new electrical generating facilities to offer to sell power to Idaho electric suppliers at rates set by Idaho’s regulators before they offer it to out-of-state electric suppliers.
Rating: -2
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
House Bill 348 would create Section 67-6512A, Idaho Code, to require any new electrical generating facility to obtain a conditional use permit that limits the facility's right to sell the power it produces.
It says, "A condition shall be attached to each permit that requires the energy facility to offer for purchase the electricity generated from the facility first to any electric supplier as defined in section 61-332A, Idaho Code, that furnishes electric service to Idaho consumers before making an offer to any other electric supplier that does not furnish electric service to Idaho consumers."
It further requires that "such electricity shall be offered for purchase to the electric supplier furnishing electric service to Idaho consumers at the market price existing at the time of the offer."
This means that even if an out-of-state electric supplier offers to pay more for the power, these facilities will be forced to sell at the "market price" in Idaho, which is set by state regulators.
It is difficult to overstate the level of market intrusion inherent in forcing a producer or supplier — of any good or service — to prioritize certain customers and to accept less from those favored customers than is offered by other willing buyers.
(-1)
Does it increase government redistribution of wealth? Examples include the use of tax policy or other incentives to reward specific interest groups, businesses, politicians, or government employees with special favors or perks; transfer payments; and hiring additional government employees. Conversely, does it decrease government redistribution of wealth?
This bill imposes a new regulatory burden. Equally bad, it has a strong element of coercive redistribution by forcing a company to sell its product for less than what it can obtain on the open market. It does this in the name of favoring local buyers.
Regardless of whether you view this requirement as benefiting Idaho electric suppliers or the end users of electricity in Idaho, the fact remains that using government regulation to financially benefit a buyer at a seller's expense is government redistribution of wealth. It’s government picking winners and losers.
(-1)
