Idaho Power Files Annual Fixed Cost Adjustment

BOISE, Idaho — On March 15, Idaho Power filed its annual Fixed Cost Adjustment (FCA) with the Idaho Public Utilities Commission (IPUC). This year’s FCA filing requests an increase of $19.2 million for Residential and Small General Service customers. If the FCA proposal is approved as filed, a typical residential customer in Idaho using 950 kilowatt-hours per month will see about a $3.49 increase to their monthly bill beginning June 1.

2019 FCA Revenue Impact by Class
Percentage Change from Current Billed Rates
Residential Small General Service Overall Change
3.64% 3.70% 3.64%

The FCA changes are in addition to Idaho Power’s Feb. 12 filing to decrease Idaho Energy Efficiency Rider collection percentage, and its March 8 filing requesting an increase in rates associated with the company’s exit from its North Valmy Plant. The company also plans to file its annual Power Cost Adjustment for all customer classes this spring. All changes, pending IPUC approval, will take effect June 1.

The FCA is a true-up mechanism that separates energy sales from revenue to eliminate financial disincentives for Idaho Power to invest in demand-side management. The FCA annually adjusts prices up or down based on changes in energy use per customer during the previous year.

Because Idaho Power encourages the wise use of electricity through energy efficiency programs, energy use per customer may decline. But even if customer energy use goes down, Idaho Power still needs to recover its fixed costs. Fixed costs include those associated with infrastructure — things like generation plants, power lines, substations and other equipment — as well as certain administrative costs.

The FCA allows Idaho Power to recover an IPUC-authorized level of fixed costs per customer. If, because of reduced energy use per customer during the prior year, the company collects less than the authorized fixed-cost amount, it is allowed to collect the difference through a surcharge. If the company collects more than the authorized amount, it refunds the difference to customers through a credit. Both scenarios have happened in the past.

In 2018, Idaho Power’s energy efficiency programs saved an incremental 183,378 megawatt hours — enough to power almost 16,000 average-sized homes for an entire year.

Idaho Power values demand-side management, energy efficiency and education programs. The FCA mechanism allows us to pursue those programs without negative financial impacts and provide a robust portfolio of options for customers.

Opportunities for Public Review
Idaho Power’s filing is a proposal 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, idahopower.com, or the IPUC website, puc.idaho.gov. 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.

About Idaho Power
Idaho Power, headquartered in Boise, Idaho, and locally operated since 1916, is an energy company that employs approximately 2,000 people who serve nearly 560,000 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 prices for electricity. IDACORP Inc. (NYSE: IDA), Idaho Power’s independent publicly traded parent company, is also headquartered in Boise, Idaho. To learn more, visit idahopower.com or idacorpinc.com.

Contact: Jordan Rodriguez
Communications Specialist
208-388-2460
jrodriguez@idahopower.com