The change reduces the overall increase from this year’s PCA filing. For the average residential customer who uses 1,050 kilowatt-hours (kWh)of electricity each month, the offset means about $1.30 less per month than projected in the original filing.

For residential customers, the change means an increase of 8.15 percent rather than 10.04 percent, a difference per month of $5.51 instead of $6.80 for 1,050 kWh.

These amounts assume the IPUC adopts Idaho Power’s proposal to credit 100 percent of the forecast amount to customers. If the traditional 90-10 percent sharing is used, the reduction will be slightly less.

On April 14 the IPUC issued an order determining the disposition of sulfur dioxide emission sales made by Idaho Power during 2007. The commission ordered $16 million in proceeds from the sale be used to offset the PCA deferral balances incurred from April 15, 2007 through April 15 of this year.

Because of the filing deadline for the PCA, the net result of the IPUC order could not be reflected until now.

When stream flows in the Snake River are normal or above, the company generates more electricity using its system of 17 hydroelectric dams. Cost savings obtained under these conditions are passed on to customers.

However, when flows are below normal, as they were last year, the company relies on its coal or natural gas-fired plants or power purchased from other utilities. This causes an increase in the annual PCA due to higher fuel or power purchase costs.