January 23, 2008
Idaho Power Files To Settle Pending General Rate Case

Idaho Power, the staff of the Idaho Public Utilities Commission (IPUC), and representatives of various customer groups today filed a proposed stipulation with the IPUC that, if approved, will conclude a general rate case filed by the company in June, 2007.

The stipulation calls for an average increase of 5.2 percent to the base rates paid by Idaho Power customers in Idaho or about a $32 million increase in the company’s annual electricity revenues.  With commission approval the changes in rates are expected to become effective on March 1.

“In its totality, today’s filing could bring our general rate case to a fair conclusion after months of intensive work by all involved,” said Idaho Power Vice President for Regulatory Affairs Ric Gale. “It is a settlement that was brought about through a cooperative effort between our customers, regulators and our company.”

Idaho Power filed its general rate case requesting an annual increase to its Idaho retail base rates of $64 million or 10.35 percent.  Base rates reflect the company’s cost of equipment, vehicles and infrastructure needed to provide electrical service to its customers.

Customer Impacts

An approved settlement would have differing impacts on the rates paid by Idaho Power’s Idaho customers.  For example, the monthly bill for a typical residential customer using 1,050 kilowatt-hours (kWh) per month would increase from $64.42 to $67.32 during non-summer months, and from $69.61 to $72.76 per month during June, July and August. Other customer groups’ increases would vary by electricity usage.

The chart below shows an average change by kWh for these customers groups:

Customer Group

Current Average Base Rate

Proposed Average Base Rate

Overall Percent Increase

Residential

5.92 cents

6.20 cents

4.7 percent

Small Commercial

7.39 cents

7.81 cents

5.65 percent

Large Commercial

4.03 cents

4.26 cents

5.65 percent

Irrigation

3.07 cents

3.24 cents

5.65 percent

Industrial

4.60 cents

4.86 cents

5.65 percent

Background

In its original June 2007 filing the company projected that it placed an additional $300 million of investment in service in its electrical system during 2006 and 2007. 

This investment included:

  • more than $200 million in the company’s distribution and transmission system, including nearly 650 miles of new transmission and distribution lines and 10 new substations, and
  • $80 million for maintenance and improvements at its existing power plants, including: $47 million for equipment upgrades, environmental protection measures and other investments at the company’s coal- and gas-fired plants, and
  • $34 million of relicensing and equipment investments related to its hydroelectric projects.

Operating and maintenance expenses have increased substantially over the same two-year period driven by increased levels of power purchases, continued rapid customer growth and inflation.

Today Idaho Power provides electricity to more than 481,000 customers in a 24,000-square-mile service area that includes portions of southern Idaho and eastern Oregon.