BOISE -- An elemental phosphorus producer, southeastern Idaho's biggest user of electricity, contends ScottishPower is unable to provide any assurances of rate stability if regulators approve the takeover of PacifiCorp.
In a letter dated Nov. 3 to Gov. Dirk Kempthorne, the manager of Solutia Inc.'s Soda Springs plant praised the chief executive's commitment to "rely heavily on the suggestions of affected ratepayers" in considering whether to support the $7.9 billion merger.With that in mind, Solutia's Bruce Pallante enlisted Kempthorne's help in ensuring regulators hold ScottishPower's feet to the fire as it attempts to move into the Idaho area served by PacifiCorp subsidiary Utah Power.
There was no immediate response from the governor's office, and a ScottishPower representative in Portland, Ore., did not return calls Wednesday.
"For 50 years the utility granted exclusive marketing rights for Caribou County has been able to procure and deliver electricity to our plant at rates that allow production of elemental phosphorus at competitive costs," Pallante wrote. "In our discussions with the petitioners to date, they have been unable to commit to meet this minimum expectation in the future, post merger."
A legislative task force on electric deregulation only last week reviewed a proposal to restrict state approval of any utility merger to those that would result in lower rates for consumers. And state law already requires the Idaho Public Utilities Commission to ensure the merger would do ratepayers no harm.
The ScottishPower-PacifiCorp deal would be the first takeover of an American electric utility by a foreign company. The merger has won approval from Wyoming, California, Washington, Oregon and federal regulators, but it still must be endorsed by Idaho and Utah.