A May 3, 2007, ruling by the U.S. 9th Circuit Court of Appeals required the Bonneville Power Administration (BPA) to cease making payments that have benefited the residential and small farm customers of the seven Pacific Northwest investor-owned utilities, including Idaho Power.

In 2000, Idaho Power entered into an agreement with the BPA, settling the company’s rights under the Residential Exchange Program of the Northwest Power Act, through fiscal year 2011. This agreement allowed benefits from the BPA to be passed on to Idaho Power’s residential and small farm customers in Idaho and Oregon beginning in October 2001.

Residential customers received the credit as a monthly credit on their electricity bills. Small-farm customers received the credit in the form of an annual payment made each December.

Several of BPA’s publicly-owned utility and direct-service industry customers filed lawsuits against the BPA with the U. S. 9th Circuit Court of Appeals. The lawsuits challenge certain aspects of the agreement, including the level of benefits previously paid to the customers of investor-owned utilities. In May 2007, the Court ruled that the settlement agreements entered into between the BPA and the investor-owned utilities, including Idaho Power,are inconsistent with the Northwest Power Act.