BOISE, Idaho — Idaho Power has filed a settlement stipulation with the Idaho Public Utilities Commission related to early retirement of the North Valmy coal-fired power plant and an associated plan for cost recovery.
Idaho Power co-owns the North Valmy Generating Station with NV Energy. The plant’s two units provide up to 260 megawatts for Idaho Power customers.
Idaho Power’s regulatory end of life for the plant depreciation purposes is currently 2031 for Unit 1 and 2035 for Unit 2, but we are exploring earlier shutdown dates with our partner.
The stipulation includes a commitment to work with NV Energy toward a targeted shutdown of Unit 1 in 2019 and Unit two in 2025.
The stipulation contains an annual revenue increase of nearly $13.3 million in Idaho effective June 1, 2017, to recover Valmy-related revenue requirements through 2028, even though the Valmy plant may cease to operate beyond 2025. If approved, this settlement agreement would significantly reduce the annual revenue requirement from the company’s previous application, which called for $28.5 million annually through June 1, 2017, from our Idaho customers.
“The agreement is positive on many fronts. It provides the company a path forward — a path towards a reasonable and cost-effective approach to an eventual end of life for the Valmy plant. The settlement recommends an approach to depreciation increases, cost recovery and eventual exit from both units that levelizes the impacts and considers cost savings for customers, along with a reasonable return for shareowners,” Idaho Power President and CEO Darrel Anderson said Thursday during the quarterly earnings call for Idaho Power’s parent company, IDACORP.
The company will continue to work with stakeholders in Oregon toward a similar agreement.
The stipulation and motion are available to the public via the Idaho Public Utilities Commission website, under Open Electric Cases, case IPC-E-16-24.
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 www.idahopower.com or www.idacorpinc.com.
Contact: Brad Bowlin