WASHINGTON
The
Bonneville Power Administration, which supplies almost half of
Washington's electricity, recently announced that it won't be able
to meet demand over the next five years and may be forced to
increase its wholesale power rates 60 percent during the same
period. Washington Gov. Gary Locke has a plan that could save the
day.
On Jan. 24, Locke announced a $7 million
package designed to encourage energy efficiency, conservation, and
diversification of the state's energy supplies, primarily through
tax incentives. By 2011, Locke wants utilities to generate at least
10 percent of their power using wind, solar, geothermal or biomass
energy. The package also encourages industrial power users, like
aluminum smelters, to build natural gas-fired generators and
produce their own power. Individual consumers will be exempt from
sales tax on energy-efficient lighting and appliances, and
utilities that supply reduced-rate power and gas to low-income
Washingtonians will also receive tax credits.
Locke "is doing some great stuff for
conservation," says Mark Glyde of the Northwest Energy Coalition,
but he and other critics want the governor to push utilities to
invest more in conservation. Major power users also have mixed
views of the plan. "Every bit of encouragement helps when it comes
to government incentives for new generating capacity," says Scott
Lamb, spokesman for Kaiser Aluminum, but he notes that the company
has "a lot of questions" about the practicality of building its own
gas-fired powerplants when natural gas prices are so
high.





