Print

April 13, 2012

Company Files Annual Power Cost Adjustment

BOISE, Idaho -- On April 13, Idaho Power submitted its annual Power Cost Adjustment (PCA) proposal for approval by the Idaho Public Utilities Commission (IPUC). If it is approved by the Commission as filed, Idaho customer rates will increase by $43 million, or an overall percentage increase of 5.10 percent in current billed rates beginning June 1.

“This year’s PCA increase is driven primarily by PURPA expenses,” pointed out Greg Said, Idaho Power vice president of Regulatory Affairs. “PURPA expenses have grown by nearly 25 percent in the last year and that increase is reflected in this year’s request.”

The chart below illustrates the overall percentage change for each major customer group as a result of the PCA filing. The varying percentages of overall increase for each customer class reflect the difference in the price each group pays for electricity.

Revenue Impact by Class: Percentage Change from Current Billed Rates

The typical Idaho residential customer using 1,050 kilowatt-hours (kWh) of energy per month will see an increase of approximately $2.82 on their monthly summer bill and $2.88 a month for non-summer months. The actual percentage of change will vary by customer group based upon the rate they pay.

PURPA Impact on the PCA
The power supply expense passed on to customers through the PCA as a result of PURPA QF projects was about $40 million in 2004. The large increase in QF projects on-line and under contract since then is expected to increase that expense to nearly $130 million during the 2012/2013 PCA period, which represents an increase of nearly $30 million this year.

There are 27 projects currently exploring energy sales agreements with Idaho Power. These projects represent 595 megawatts (MW) nameplate capacity of generation in addition to the 989 MW nameplate capacity of the 119 projects with existing power purchase agreements with Idaho Power. These additional projects would require customers to pay an additional $2.7 billion over the company’s existing contractual obligation of more than $3.6 billion.

Idaho Power is aware of the impact these cost increases have on customers and the region’s economy and has asked the Idaho Public Utilities Commission to change the way prices are set for energy from these projects. The proposed pricing model would take into account important factors like whether the resource is reliable, whether its production can be raised or lowered in response to customer demand, and whether the electricity is even needed at all.

Opportunities for Public Review
Idaho Power’s filing is a proposal that is subject to public review and approval by the IPUC. Copies of the application are available to the public at the IPUC offices (472 W. Washington, Boise, ID), Idaho Power offices or on Idaho Power’s website, www.idahopower.com or the IPUC website, www.puc.idaho.gov. You can view additional, related materials on the filing at www.idahopower.com/rates.

About Idaho Power Company:
Idaho Power began operations in 1916. Today, the electric utility employs approximately 2,000 people who serve nearly 500,000 customers throughout a 24,000-square-mile area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its generation portfolio, Idaho Power’s residential, business and agricultural customers pay among the nation’s lowest rates for electricity. IDACORP, Inc. (NYSE: IDA) is the investor-owned utility’s parent company based in Boise, Idaho. To learn more, visit www.idahopower.com or www.idacorpinc.com.

Contact: Stephanie McCurdy
Communication Specialist
Idaho Power
208-388-6973 and SMcCurdy@idahopower.com
1-800-458-1443 media line