Idaho Power Files Annual Fixed Cost Adjustment

BOISE, Idaho — Idaho Power has filed the first of two spring cost adjustments with the Idaho Public Utilities Commission (IPUC). This year’s annual Fixed Cost Adjustment (FCA) requests an increase of $710,580 for residential and small general service customers in Idaho. If the FCA proposal is approved as filed, a typical residential customer using 950 kilowatt-hours per month would see about a $0.02 increase to their monthly bill beginning June 1. The final impact to customer bills won’t be known until the second adjustment, the Power Cost Adjustment (PCA), is filed in April. The PCA, if approved, will also become effective June 1.

2020 FCA Revenue Impact by Class
Percentage Change from Current Billed Rates
Residential Small General Service Overall Change
0.02% 0.01% 0.02%

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, which can contribute to use per customer declining. The FCA annually adjusts prices up or down based on actual changes in energy use per customer during the previous year.

In 2019, Idaho Power’s energy efficiency programs saved an incremental 203,041 megawatt hours — the highest recorded savings year to date and enough energy to power almost 18,000 average-sized homes for a year. Idaho Power values demand-side management, energy efficiency and education programs, and the FCA mechanism allows us to provide these programs to our customers without negative financial impacts.

The FCA allows Idaho Power to recover an IPUC-authorized level of fixed costs — costs associated with things like generation plants, power lines and substations — 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 can 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.

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 (11331 W. Chinden Blvd. Building 8,
Suite 201-A, Boise, ID 83714), 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 vibrant and fast-growing Boise, Idaho, has been a locally operated energy company since 1916. Today, it serves a 24,000-square-mile area in Idaho and Oregon. The company’s goal to provide 100% clean energy by 2045 builds on its long history as a clean-energy leader that provides reliable service at affordable prices. With 17 low-cost hydroelectric projects at the core of its diverse energy mix, Idaho Power’s residential, business and agricultural customers pay among the nation’s lowest prices for electricity. Its 2,000 employees proudly serve more than 570,000 customers with a culture of safety first, integrity always and respect for all.

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.

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