Jul. 15--Idaho Power Co. predicts a rebounding state economy will need electricity generated by its proposed Langley Gulch natural gas plant.

Despite the layoffs at Micron Technology and the drop off in new home construction and sales, Idaho remains a great place and will continue to attract people from other places, especially California, said Michael Mace, a Boise State University economics professor who used to work for Idaho Power.

"I would say the growth prospects for southern Idaho are good," Mace said.

The Public Utilities Commission began its formal hearing Tuesday on the utility's proposal, with the economic consultant defending the company's power load forecast. The company says it will need the 330 megawatts of power the plant would generate.

Critics like industrial users, irrigators and environmentalists countered that the general economic decline and a recent decision by Hoku Scientific to slow construction of its polysilicon plant for solar panels in Pocatello are reasons to delay a decision on the plant. The plant would cost $427.4 million and tie Idaho Power rates partly to the unstable costs of natural gas.

"The heart of this case is whether the lights will go out if you delay your decision 10 months," said Peter Richardson, a lawyer for the industrial users.

Mace said Idaho Power regularly must accommodate companies coming in that need access to power.

Server farms are among the industries looking at southern Idaho, Mace said. These are companies that host computer servers for businesses and need anywhere from 10 to 15 megawatts of power each.

And until Hoku actually closes and reneges on its contract, Idaho Power must move forward prepared to meet what the company agreed to provide, Mace said.

"The problem with waiting to reduce your uncertainty is you might have more uncertainty," Mace said.

Idaho Department of Commerce Director Don Dietrich confirmed in an interview that there is a lot of interest from companies looking to locate in Idaho.

"Our pipeline is full," Dietrich said.

And he's confident Hoku, which would need 40 to 46 megawatts of power at peak, will open.

"Hoku is going to come to fruition whether it's under Hoku or someone else," Dietrich said.

The Langley Gulch hearing is expected to continue for two more days, with a decision expected in August.

Rocky Barker: 377-6484

-----

To see more of the Idaho Statesman, or to subscribe to the newspaper, go to http://www.idahostatesman.com

Copyright (c) 2009, The Idaho Statesman, Boise

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:MU, NASDAQ-NMS:HOKU,

A service of YellowBrix, Inc.