Idaho Power Finalizes Agreement to Cease Participation in Operations at Valmy Coal-fired Plant

BOISE, Idaho — On March 8, Idaho Power made a filing with the Idaho Public Utilities Commission (IPUC) requesting approvals of actions related to the company ceasing operations at the coal-fired North Valmy power plant (Valmy). In cooperation with NV Energy, Idaho Power has finalized an agreement to end its participation in operations of Valmy Unit 1 by Dec. 31, 2019 and Valmy Unit 2 by Dec. 31, 2025.

In its filing, Idaho Power has asked the IPUC to:

  • Approve the North Valmy Project Framework Agreement between NV Energy and Idaho Power (Agreement) dated Feb. 22, 2019. This Agreement outlines the terms and conditions under which either party may elect exit of participation in Valmy.
  • Find that the company’s actual and forecasted investments at Valmy through the plant’s remaining life are allowable for inclusion in customer rates.
  • Adjust customer rates to recover the associated incremental annual levelized revenue requirement of $1.2 million with an effective date of June 1, 2019.

The terms and conditions contained in the Agreement are consistent with the commitments detailed in the 2017 settlement agreement approved by IPUC Order No. 33771 and will allow Idaho Power to achieve cost savings benefits for customers of approximately $12.2 million. In this case, Idaho Power seeks the IPUC approval required by the Agreement and to adjust customer rates to align with the remaining life-cycle costs provided for by that agreement.

If Idaho Power’s request in this matter is approved as filed, the average Idaho residential customer using 950 kilowatt hours per month will see an increase of $0.10, effective June 1, 2019.

Revenue Impact by Class
Percentage Change from Current Billed Rates
Residential Small General Service Large General Service1 Large Power2 Irrigation
Valmy 0.11% 0.10% 0.11% 0.11% 0.11%

1 Includes Lighting Schedules    2 Includes Special Contracts

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

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