HJR7 would allow city to enter into power contracts

The City of Bonners Ferry along with 11 Idaho cities own municipal electric utilities and  provide electrical service to citizens.  Bonners Ferry and the other cities have worked with state legislators to draft HJR7, a two-part amendment to the Idaho Constitution.  

The first part would restore the ability to purchase electrical energy when market conditions are favorable rather than waiting for the next election date. HJR7 clarifies that a city owning a municipal electric system may enter into contracts with BPA and other suppliers for the purchase of wholesale electricity to help keep electric rates low and stable. 

According to City Administrator Stephen Boorman, the City of Bonners Ferry generates about 30 percent of the city’s electricity requirements at the Moyie Hydroelectric plant, and buys the rest from Bonneville Power Administration.

“The percent we generate varies from year to year sometimes we generate 40 percent sometimes 20 percent depending on the weather,” Boorman said.

The second part of this amendment would allow Idaho cities which own municipal electrical systems to issue revenue bonds, to pay for infrastructure upgrades.

Voter approval is required, however property tax dollars cannot be used to settle those debts. Cities would be prohibited from using property tax revenue to cover indebtedness resulting from the agreements. 

HJR7 will affect the voting requirements for revenue bonds from 2/3 to a simple majority, the same as the requirements for water and sewer system upgrades. Such bonds cannot legally be paid with property tax revenues.  They can only be paid with revenues derived from the sale of electrical energy.

This amendment will be on the statewide general election ballot Tuesday. The amendment would help ensure residents have low-cost and stable electricity rates, according to supporters. Opponents, however, raise the two-thirds voter assent safeguard argument.