Annual Power Cost Adjustment Filed Today

BOISE, Idaho – Today, Idaho Power filed its annual Power Cost Adjustment (PCA) with the Idaho Public Utilities Commission (IPUC). The PCA is a cost recovery tool that passes on both the benefits and costs of supplying energy to Idaho Power customers. Neither Idaho Power nor its shareholders receive any financial return on this filing—money collected from the surcharge can be used only to pay power-supply expenses. These typically represent approximately one-fourth to one-third of the company’s annual cost of serving customers.

If the PCA proposal is approved by the IPUC, the typical Idaho residential customer using 1,000 kilowatt-hours (kWh) of energy per month will see an increase of about $0.59 on their monthly bill, beginning June 1.

The amount all Idaho customer classes pay for electric service will increase by $10.6 million; the actual percentage of change will depend on a customer’s class and the rate they pay.

2017 PCA Revenue Impact by Class:
Percentage Change from Current Billed Revenue
Residential Small General Service Large General Service Large Power Irrigation Overall Change*
0.58% 0.27% 1.10% 1.75% 0.94% 0.93%


There are a few main factors contributing to this year’s PCA increase:

Hydro conditions are expected to be better than normal, resulting in more low-cost hydro generation available to serve customers. However, the benefit from improved hydro conditions is expected to be more than offset by higher costs associated with new solar and wind power purchase agreements under the Public Utility Regulatory Policies Act of 1978 (PURPA), and higher coal-fired generation costs. Additionally, last year’s actual power costs exceeded forecast levels mostly attributable to worse-than-expected water conditions.

Included in this year’s PCA rates, customers will receive a $13 million refund of previously collected energy efficiency rider funds. This refund will have no impact on existing and new demand side management services. A full portfolio of demand response and energy efficiency programs for all customer sectors will continue to be offered.

“It’s also important to understand that the availability of water for hydroelectric generation depends on many factors, including how fast spring runoff occurs, which in turn shapes how much runoff remains in the summer when demand for electricity peaks,” said Idaho Power Vice President of Regulatory Affairs Tim Tatum. “If the snow melts too quickly, flood control efforts take priority, and in some cases excess water must be spilled, rather than used for generation, to avoid overfilling reservoirs. Idaho Power is currently facing this situation.”

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 St., Boise, Idaho, 83702), Idaho Power offices or on Idaho Power’s website,, or the IPUC website, Customers also may subscribe to the IPUC’s RSS feed to receive periodic updates via email about the case. Written comments regarding Idaho Power’s application may be filed with the IPUC. Visit our Rates and Regulatory page to view additional related materials on the filing.

About Idaho Power:
Idaho Power, headquartered in Boise, Idaho, and locally operated since 1916, is an electric utility that employs more than 2,000 people who serve approximately 535,000 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 diverse generation portfolio, Idaho Power’s residential, business and agricultural customers pay among the nation’s lowest rates for electricity. IDACORP, Inc. (NYSE: IDA), Idaho Power’s independent publicly traded parent company, is also headquartered in Boise, Idaho. To learn more, visit or

Contact: Stephanie McCurdy
Communication Specialist
Idaho Power
208-388-6973 and