Editorial: Regulators protect Idaho customers from Washington’s tax

Published 7:00 am Thursday, January 11, 2024

It was a small victory, but a victory nonetheless.

In a recent ruling, the Idaho Public Utilities Commission rejected a proposal by Avista Utilities to add the cost of Washington’s cap-and-trade program to the bills of its customers in Idaho.

Avista has a natural gas-powered generator in Washington state and transmits electricity and natural gas to customers across the border in Idaho.

Washington’s Climate Commitment Act requires utilities and other greenhouse gas producers to buy allowances for the privilege of operating in the state. Over time, the number of allowances will decrease, in theory forcing the companies to produce less greenhouse gases such as carbon dioxide and methane.

Washington has a system under which Avista’s customers within the state are exempted from paying for the allowances but Idaho customers are not.

The Idaho commission rejected that setup.

“The current application of (Washington’s Climate Commitment Act) provides for disparate treatment between Idaho and Washington ratepayers and creates in essence, or perhaps in fact, a one-sided tax upon Idaho ratepayers to pay for Washington’s social and environmental policies,” the final order stated. “The commission cannot find it fair, just or reasonable for Idaho customers to fund Washington’s policy initiatives when none of the alleged benefits will flow to Idaho customers.”

The commission’s ruling showed that Washington’s cap-and-trade program, which has extracted more than $1.5 billion from energy producers and others that emit greenhouse gases, is a tax whose benefits are debatable.

Washington’s cap-and-trade law has many flaws. It has caused the price of gasoline to increase by 41 cents a gallon and diesel fuel to increase by 50 cents. That is in addition to the 49.4 cent gas tax the state already levies.

This forces the price of nearly everything higher, as truckers, railroads, airlines and other modes of transportation must pay more for fuel. Low-income drivers and consumers — who can least afford higher fuel prices — are hurt while the state of Washington has reaped more than $1.5 billion.

The law exempts farmers and ranchers from paying the higher price of fuel, but the state has refused to put in place a means of refunding the cost.

And don’t ask whether the Washington law has stopped or even slowed climate change. Washington state contributes about 0.2% of global greenhouse gas emissions. That means if the state shut down all emissions, it wouldn’t impact the overall problem.

In the meantime, the climate law will continue to drive the prices of food, fuel and consumer goods higher.

The utilities commission in Idaho recognized that. It recognized that Washington’s legislature has gone overboard in its climate change efforts. The result has been a feel-good program that accomplished little and overfilled state coffers.

It is a politician’s dream come true.

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