On Tuesday (April 15) Idaho Power filed its annual PCA to recover $87 million in power supply and fuel expenses incurred from April 15, 2007 through April 15, 2008.

The IPUC order arrived too late for Idaho Power to determine how each customer group will be affected but estimates the benefit will reduce the overall PCA from over 12 percent to around 10.4 percent. The reduction will be applied June 1 when the 2008 PCA becomes effective.

The company earlier had suggested to the IPUC four ways of sharing the benefit of the emissions sale with its customers:

1. applying the proceeds against the PCA to provide rate relief to customers;
2. buying green tags from owners of small-wind projects or other renewable projects;
3. allowing Idaho Power to buy a wind project;  and
4. using $500,000 to develop classroom education programs about energy efficiency with the remaining balance directed toward other energy efficiency operations.

The four options were discussed with IPUC staff and interested parties in a workshop last year. The findings of that meeting were then sent on to the IPUC commissioners for their consideration. The commission then ordered the disposition of the $16 million.

Last year Idaho Power sold 35,000 Sulfur Dioxide (SO2) credits for approximately $19 million. The credits came from a federal program that allows utilities that own coal-fired or other thermal power plants to sell SO2 allowances over their allotted annual emissions requirements.

A utility that holds more allowances than its annual requirement is considered to have surplus allowances. These can be sold on the open market or through auctions sponsored by the Environmental Protection Agency.

Idaho Power owns a portion of three coal-fired plants: Jim Bridger in Wyoming, North Valmy in Nevada and Boardman in Oregon.