Idaho Falls Power

140 S. Capital Ave., PO Box 50220, Idaho Falls, Idaho 83405     Phone: (208)6128430  Fax: (208)612-8435

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PRESS RELEASE

Jared D Fuhriman

Mayor

July 13, 2010

Over 120 years ago, the drafters of the Idaho Constitution wisely included a provision in

Idaho’s Constitution that required a vote of the people before any city, county, or school district could incur “special” or “extra-ordinary” debt. The framers of the Constitution were men of practicality and they recognized that these local government entities would occasionally need to make expenditures extending beyond their budget year in order to perform their customary functions. Accordingly, they included an exception to the rule requiring a public vote—it was called the “ordinary and necessary” expense proviso. 

Idaho Falls has relied upon this exception in order to provide low cost, stable electrical energy to all of its residents. The execution of multi-year power purchase contracts has become an increasingly important tool to protect our citizens from wildly fluctuating energy costs. Relying upon the ordinary and necessary expense exception, the Idaho Falls electrical department has for many years signed energy contracts when the price of energy was low or when energy was otherwise needed in order to meet our electrical load requirements. Energy markets move quickly and do not wait for bond elections—especially ones that by state law can now only be conducted twice a year.

Last week, the Idaho Supreme Court, in a split decision, issued a ruling that narrowly

defined this constitutional proviso, almost to the point of writing it out of existence.  The curious logic used to derive such result was pointed out in a strongly worded dissent signed by two of the justices, Justice Jones and Justice Kidwell.  Although we respect the Court’s decision, we also strongly disagree with it.  As elected representatives, we believe that the Constitution should be amended only by a vote of the people---not by judicial revisionism untempered by vigorous political debate.

We—meaning the City—brought this test case in order to clarify an earlier opinion by the

Court in the case of the City of Boise v. Frazier.  We did so, with the hope that the Court would accept our invitation to carefully review the recorded history surrounding the constitutional debates and restore the interpretation of the proviso to its intended application. Sadly, the Court rejected our invitation.

The low, stable electrical rates we have long enjoyed are in grave jeopardy as a result of this decision. There is a solution, but it lies---as it should---with the people of this great State. Three constitutional amendments have been placed on the November election ballot by our State Legislature. If adopted, these three ballot initiatives will restore a significant portion of the authority so wisely vested in cities and counties by our Founding Fathers. We call upon all concerned citizens statewide to rally around these three constitutional amendments. In the coming months, we will need not only your votes, but your financial contributions as well, in order to educate and inform our electorate about these ballot initiatives. The bottom line is simple—stable and low electric rates may soon be a thing of the past.