electric.pdf

2000
ANNUAL REPORTPage 15 IDAHO PUBLIC UTILITIES COMMISSION
Electrical Power in Idaho
Idaho residents consistently enjoy some of the least expensive electric service in
the nation, according to surveys conducted by the National Association of
Regulatory Utility Commissioners (NARUC), the Edison Electric Institute and
the Energy Information Administration of the U.S. Department of Energy.
Idaho Power Company
1999 Average Number of Customers/Avg. Revenue/kwh*
(*Computed from data available in FERC Form 1 Annual Reports)
300,072 Residential Customers/$.0510
59,677 Commercial Customers/$.0373
105 Industrial Customers/$.0250
Avista Utilities
(formerly Washington Water Power)
87,131 Residential Customers/$.0483
14,248 Commercial Customers/$.0536
515 Industrial Customers/$.0338
Pacificorp
dba Utah Power & Light
42,878 Residential Customers/$.0684
5,996 Commercial Customers/$.0667
5,317 Industrial Customers/$.0379
Idaho’s
Electricity
Rates Are
Among The
Lowest In
The Nation
IDAHO PUBLIC UTILITIES COMMISSION Page 162000
ANNUAL REPORT
Electric Utility Case Reviews
Number of Customers
= 359,854
Residential Rate =
$2.51/mo. + .050178
cents/kWh
(includes Power Cost
Adjustment)
Idaho Power Company
1220 W. Idaho Street
P O Box 70
Boise, ID 83707
800-488-6161
208-388-2323
(Treasure Valley)
Idaho Power Company
Idaho Power Co. is Idaho’s largest electric utility. In 1999, it generated
almost 60% of its electricity at hydropower dams on the Snake River, but
receives increasing amounts of power from its share of coal-fired plants at Jim
Bridger, Wyoming; Boardman, Oregon; and Valmy, Nevada. Idaho Power
purchases about 4.4-percent of its energy from cogenerators and small power
producers.
In 1999, the average Idaho Power household used 13,276 kWh, down
0.9 percent from the 13,396 kWh in 1998. This figure averages residential
customers with electric space and water heating with those who do not use
electricity for these high end uses.
April 13, 2000
Idaho Power To Continue Involvement In Regional
Energy Group
Case No. IPC-E-99-13, Order No. 28333
Idaho Power Company’s continuing five-year participation in a regional
energy conservation consortium received the go ahead from the Idaho Public
Utilities Commission.
The PUC re-authorized the utility’s involvement in the Northwest
Energy Efficiency Alliance (NEEA) from 2000 to 2004. Idaho Power’s contri-
bution to the program will be approximately $1.3 million a year. The participa-
tion will have no impact on Idaho Power’s current residential electric rates.
NEEA is a non-profit regional group of energy users represented by
public and private utility companies, state and local governments, as well as
public interest groups and private-sector interests. Idaho Power has been
participating in the program since 1997. The organization is involved in plans
and programs to identify and promote energy-efficient products, practices and
choices.
2000
ANNUAL REPORTPage 17 IDAHO PUBLIC UTILITIES COMMISSION
Electric Utility Case Reviews
May 12, 2000
Low Water Increases Power Rates; Adjustments To Profits
Allowed Idaho Power To Reduce Rates;
Net Effect 8% Overall Increase
Case No. IPC-E-00-6, Order No. 28358
Low runoff in the Snake River resulted in higher power rates, but a
previous decision by the Idaho Public Utilities Commission to hold back surplus
profit-sharing funds of Idaho Power Co. helped offset those increases. That
earlier decision directed Idaho Power to set aside revenue-sharing funds in an
interest-bearing account to help defray the anticipated increased costs of power
generation this year.
Based on the Power Cost Adjustment program initiated by the PUC in
1992, the Commission approved an Idaho Power Co. request for a temporary
7 percent increase for residential customers an average 9.5 percent boost for all
customers. The adjustment results from projections from the National Weather
Service (NWS) of reduced flows in the Snake River this spring and summer,
based upon their measurements at Brownlee Reservoir.
The net result of actions taken by the PUC that go into effect May 16,
was that residential rates went up approximately 6 percent, or $3.62 for a
customer using 1,200 kilowatt hours per month. The overall increase for all
customers, which includes residential, commercial and industrial concerns, was
approximately 8 percent. This means this year’s PCA increase was being
partially offset by a reduction of an average of about 1.5 percent for all custom-
ers and about 1 percent for residential users.
IDAHO PUBLIC UTILITIES COMMISSION Page 182000
ANNUAL REPORT
Number of Customers
= 54,191
Residential Rate =
$9.57/mo. min. charge
9.4435-cents/kWh
May through October
7.2440-cents/kWh
November through
April
(BPA Credit Included)
Pacificorp
dba
Utah Power & Light
1407 West N.Temple
Salt Lake City
Utah, 84116
801-220-2000
(SLC)
208-852-1916
(Preston)
208-356-7366
(Rexburg)
Electric Utility Case Reviews
PacifiCorp dba Utah Power & Light Company
Based in Salt Lake City, Utah Power & Light Company provides
electricity in eastern Idaho and northeastern Utah. It is the third largest electric
utility in Idaho.
UP&L relies more heavily on thermal generation facilities than any other
electric utility in Idaho; the rates are correspondingly higher. In comparable
classes, UP&L’s rates range from two-to-four cents higher per kWh than the
state’s other, predominately hydropower utilities.
In 1999, the average UP&L residential customer used 13,276 kWh of
electricity, a 1.3 percent increase from the 13,101 kWh average in 1998. This
figure averages residential customers with electric space and water heating with
those who do not use electricity for these high load uses.
November 15, 1999
Pacificorp/Scottish Power Merger Approved
Commissioner Hansen Dissents
Case No. PAC-E-99-1, Order No. 28213
Crediting public participation for helping to impose significant stipula-
tions and limitations that will help protect interests of Idahoans, the Idaho Public
Utilities Commission approved the merger application of PacificCorp and
ScottishPower. Commission President Dennis Hansen voted against the merger,
citing concerns with the evidence provided.
The order points out that testimony heard “during the course of four
separate public hearings was at times passionate, but always motivated by
genuine concern of those affected by the decision in this case. The comments
articulated by the public are the basis for many of the 46 merger conditions
imposed.” The order stated, “we firmly believe that those conditions will lead to
significantly improved service at reasonable rates for PacifiCorp’s Idaho cus-
tomers.”
“Because of the conditions imposed by this Commission, the ratepayers
should notice improved service quality with, at a minimum, a temporary rate
reduction. Irrigators in particular should be better served with the addition of an
irrigation specialist to PacificCorp’s personnel,” the order said.
2000
ANNUAL REPORTPage 19 IDAHO PUBLIC UTILITIES COMMISSION
Electric Utility Case Reviews
May 25, 2000
IPUC Denies Utah Power & Light Request For “Green”
Energy Rates
Case No. PAC-E-00-1, Order No. 28380
An application by Utah Power & Light Co., to give its Idaho customers
an option of paying a premium for electricity generated by alternative energy
sources such as geothermal, wind and solar was denied by the Idaho Public
Utilities Commission.
In denying the application, the Commission noted that the proposed rate
schedule appeared to be heavily weighted toward administration and marketing
and not the actual renewable resource development program.
“While the Commission supports the development of renewable energy
resources, we believe the company needs to refine its proposal…We encourage
the company to file a ‘green’ tariff that supports deployment of renewable
resources and is priced to foster customer acceptance.” The commission noted
that while marketing and promotion are necessary, the majority of the revenue
from this program should be directed toward resource development.
June 5, 2000
Reduction Of BPA Exchange Credit Approved
Case No. UPL-E-00-1, Order No. 28385
An application by Utah Power & Light Co. to implement the third step
of a planned phase-out of regional exchange credits with the Bonneville Power
Administration was approved by the Idaho Public Utilities Commission.
Scheduled to go into effect June 1, the phase-out increased average
costs of a residential customer using 1,200 kilowatt hours by 3.35 percent or a
monthly average of $3.74 in the summer and $2.40 in the winter. The cost
increase to an average irrigation pumper was approximately 8 percent.
The exchange credit program began 20 years ago with the Pacific
Northwest Power Planning and Conservation Act, which enabled the BPA to
enter into 20 year agreements with UP&L and other Northwest investor-owned
utilities. The Agreement specified that BPA would pass back to residential and
small agricultural customers the benefit of the low-cost hydroelectric generating
capacity within the BPA’s Columbia River hydro system.
With the Agreement set to expire in June 2001, a phase-out program
was instituted by Congress beginning in 1998 to spread out the rate increases
over three years, lessening the magnitude of the impact on residential and small
agricultural customers in 2001.
IDAHO PUBLIC UTILITIES COMMISSION Page 202000
ANNUAL REPORT
Electric Utility Case Reviews
March 7, 2000
Sale Of Pacificorp’s Stake In Centralia Power Plant
Approved
Case No. PAC-E-99-2, Order No. 28296
PacifiCorp received approval from the Idaho Public Utilities Commis-
sion to sell its 47.5 percent ownership in the 1,340 megawatt Centralia, Wash.,
steam power-generating station.
Of the portion of the sale proceeds rebated to customers, less than one
percent would apply to customers in Idaho. “The amount of gain allocated to
Idaho customers related to Centralia is so very small that a rate adjustment to
account for the gain not only is not required, but is practically speaking impos-
sible” the Commission’s order said. Idaho customers comprise only 3.6 percent
of PacifiCorp’s total service area. Additionally, PacifiCorp’s investment in the
Centralia plant had only been included in the utility’s rate base for Idaho cus-
tomers since the acquisition of Utah Power & Light by PacifiCorp.
As part of the Commission’s order, most of Idaho’s share of the
proceeds from the sale will offset costs at other PacifiCorp generating facilities
that serve Idaho customers. As a result, the utility’s expenses upon which rates
are set will decrease and be reflected in any future rate adjustments that the
company may seek.
2000
ANNUAL REPORTPage 21 IDAHO PUBLIC UTILITIES COMMISSION
Electric Utility Case Reviews
Avista Utilities
Avista generates most of its electricity at hydropower dams located in
Washington, Idaho and Montana. The company also receives power from
thermal plants located in Washington and Montana.
In 1999, the average Avista household used 11,723 kWh, down 1.1-percent
from the 11,854 kWh in 1998. This figure averages residential customers with
electric space and water heating with those who do not use electricity for these
high load uses.
March 7, 2000
Avista Idaho Customers To Receive Reduced Power Rates
Following IPUC Approval Of Sale Of Utility’s Stake In
Washington Power Plant
Case No. AVU-E-99-6, Order No. 28297
Idaho customers of Avista Corp. will see a reduction in power rates
following Idaho Public Utilities Commission approval of the sale of the utility’s
17.5 percent stake in the 1,340 megawatt Centralia, Wash., steam power-
generating station.
Avista and seven other utility companies and districts are in the process
of selling their respective equity positions in the power-generating complex to
units of TransAlta Corp., a Canadian energy concern. Avista’s after-tax gain on
the sale of its ownership position in the plant will be approximately $29.6 million.
The utilities had decided to sell the generating facility because of future environ-
mental capital expenditure requirements.
The Commission in its ruling ordered that Idaho’s proportionate share of
the proceeds, or approximately $6.8 million, be returned to Idaho customers in
the form of a 1.3 percent rate reduction over the next eight years. Special
contract customers will not share in the gain from the sale.
Also Under IPUC
Jurisdiction:
Atlanta Power
Company
319 River Road
Bliss, ID 83314
208-352-4692 (Bliss)
208-764-2310 (Fairfield)
Number of Customers
= 101,894
Residential Rate =
$4.00/mo.
+ 4.4080-cents/kWh
1st 600 kWh
Over 600 kWh ~
5.156-cents/kWh
(includes power cost
adjustment, Energy
Efficiency Rider and
Centralia Sale Adjustment)
Avista Utilities
(physical address)
E 1411 Mission Ave.
(mailing address)
P O Box 3727
Spokane, WA 99220
800-727-9170
509-489-0500
(Spokane)
208-664-0421
(Coeur d’Alene)
208-743-5541
(Lewiston)
208-882-7511
(Moscow)
IDAHO PUBLIC UTILITIES COMMISSION Page 222000
ANNUAL REPORT
Idaho Natural Gas Utilities
The Idaho Public Utilities Commission regulates two natural gas utilities:
Intermountain Gas Company and Avista Utilities. Questar Gas provides service
to a small number of customers in southeast Idaho, but is regulated by the Utah
Commission.
Intermountain Gas supplies natural gas to southern Idaho, serving more
than 199,000 customers. Avista has gas operations in eastern Washington and
northern Idaho, serving nearly 53,000 customers in northern Idaho.
In June 1990, Questar Gas - then known as Mountain Fuel Supply Co.-
of Salt Lake City, Utah, applied to the Commission for authority to serve Idaho
customers in the Preston area. Together, the Commission and the Idaho Legisla-
ture amended Idaho Code 61-505, clarifying the Commission’s ability to
contract with neighboring state regulators to regulate rates in Idaho border
communities served by the neighboring states’ utilities. The amendment encour-
ages such utilities to extend service into Idaho without incurring undue regulatory
expense.
When natural gas reached Idaho communities in the 1950s, local
distribution companies’ supply came from the Northwest Pipeline Corporation
of Salt Lake City. The pipeline serves much of the Pacific Northwest, connect-
ing the Four Corners fields of the southwest with Canadian supply.
Customers of Intermountain Gas and Avista face significant increases in
their rates during the summer season, a period when rates are historically low.
Explanations given for the increase in price during an off-season time are
varied, but there appears to be general agreement that the root cause is in-
creased demand for gas during the “off season.” Also of specific note is the
opening of the Alliance Pipeline which has allowed low-cost Canadian gas to be
transported to markets in the Mid-west where gas prices are generally much
higher. Additionally, there has been an increase in the number of natural gas fired
turbines for electric power generation which has increased competition for gas
supply during the summer months, a period which historically has been used by
gas companies to purchase and store gas at low prices for use during the winter
months when demand and prices are generally higher.
Intermountain Avista Questar Total
No. of Customers 199,489 52,946 1,487 253,922
% of Total Custs. 78.56% 20.85% 0.59% 100.00%
Therms (millions)521.8 68.1 1.6 591.4
% of Total Therms 88.23% 11.51% 0.26% 100.00%
Revenue ($millions)$128.42 $27.7 $0.99 $149.1
% of Total Rev. 79.80% 19.61% 0.59 100.00%
Idaho Gas Prices
Have Increased
Following
National Trends.
Sales Continue
To Increase.
2000
ANNUAL REPORTPage 23 IDAHO PUBLIC UTILITIES COMMISSION
INTERMOUNTAIN GAS COMPANY
Idaho services only
Residential Commercial Industrial Transportation Total
No. Customers 177,329 22,045 116 0 199,489
% of Total Custs. 88.89% 11.05% 0.06% 0.00% 100%
Therms (millions)144.1 87.3 4.0 286.4 521.8
%of Total Therms 27.61% 16.73% 0.77% 54.88% 100%
Revenue (millions)$74.21 $40.08 $1.15 $12.98 $128.42
% of Total Rev. 57.79% 31.21% 0.90% 10.11% 100%
AVISTA UTILITIES
Idaho services only
Residential Commercial Industrial Transportation Total
No. Customers 46,399 6,437 110 0 52,946
% of Total Custs. 87.63% 12.16% 0.21% 0.00% 100%
Therms (millions)38.1 24.7 5.30 0 68.1
%of Total Therms 55.95% 36.32% 7.73% 0.00% 100%
Revenue (millions)$19.08 10.61 $1.87 $0.00 $31.57
% of Total Rev. 60.44% 33.62% 5.94% 0.00% 100%
QUESTAR GAS COMPANY
Idaho services only
Residential Commercial Industrial Transportation Total
No. Customers 1,486 1 0 0 1,487
% of Total Custs. 99.93% 0.07% 0.00% 0.00% 100%
Therms (millions) 1.5 0.1 0.0 0.0 1.6
%of Total Therms 93.90% 6.10% 0.00% 0.00% 100%
Revenue (millions)$0.91 $0.04 $0.00 $0.00 $0.95
% of Total Rev. 95.82% 4.18% 0.00% 0.00% 100%
Idaho Natural Gas Utilities
IDAHO PUBLIC UTILITIES COMMISSION Page 242000
ANNUAL REPORT
June 29, 2000
Intermountain Gas Gets Cost-Of-Gas Rate Increase
Case No. INT-G-00-1, Order No. 28426
The Idaho Public Utilities Commission approved an Intermountain Gas
Co. request for a price increase of about 27 percent for residential customers.
The increase follows a national trend of increasing gas supply prices.
The price change was made through the Purchased Gas Cost Adjust-
ment (PGA) mechanism, which allows a once-yearly pass-through of direct
costs, up or down, that the utility must pay to its suppliers and transporters for
natural gas. None of the revenue from this year’s price increase will profit the
company. In the 13 years the PGA has been in effect, the cost of gas to con-
sumers has actually decreased about 4 percent, prior to this PGA increase.
The Commission said even with the increase, Idaho natural gas prices
remain among the lowest in the country. With the increase, residential customers
using natural gas for space and water heating will see their monthly bills go up
about 27 percent to 68.3 cents per therm. Residential customers who use
natural gas for space heating only, will see an increase of about 28 percent to
81.5 cents per therm.
The Commission encouraged the company to help provide customers
information about assistance programs available to low-income and other
qualified customers and for customers to consider a company-provided level-
pay option to spread the impact of the increases. Additionally, Commissioners
encouraged customers to implement conservation practices where possible,
such as lower thermostat settings, shorter showers and regularly serviced
furnace filters.
Intermountain Gas CompanyIntermountain
Gas Company
555 S. Cole Road
P O Box 7608
Boise, ID 83707
208-377-6840
(Boise)
208-365-3004
(Emmett)
208-788-3488
(Hailey)
208-522-6095
(Idaho Falls)
208-467-7491
(Nampa)
Residential Rates
(RS2, customers using
gas for both space and
water heating)
Summer
$2.50/month
$0.65004/therm
Winter
$6.50/mo
$0.61641/therm
Gas Utility Case Reviews
2000
ANNUAL REPORTPage 25 IDAHO PUBLIC UTILITIES COMMISSION
November 2, 1999
Avista Corp Receives Natural Gas “Tracker” Rate
Increase On Average Of 8.58%; Residential Rate
Increase Lower At 8.41% or $3.20 per Month
Case No. AVU-G-99-2, Order No. 28189
The Idaho Public Utilities Commission granted Avista Corp’s request for
an overall 8.58 percent “gas tracker” rate increase for its natural gas customers
in northern Idaho. As opposed to general rate cases which consider a utility’s
overall cost of doing business, “trackers” reflect increases or decreases in the
price Avista must pay for natural gas. In 1996, 1995 and 1994, the “gas
tracker” produced lower rates to reflect a decrease in gas prices paid by the
utility during those years.
The current rate increase will boost Avista’s annual revenue by approxi-
mately $2.7 million. The increase to residential customers - totaling about
48,000 of Avista’s total customer base in Idaho of 48,600 - will be 8.41
percent, or about $3.20 for a typical residential customer who uses an average
of 80 therms per month. The rate increase went into effect Nov. 1.
Questar Gas
Company
180 E. First South
Salt Lake City,
UT 84139
801-324-51120
Residential Rates
Summer
$5.00/mo
$0.433548/therm
$0.330883/therm over
45 therms
Winter
$5.00/mo
$0.518495/therm
$0.405118/therm over
45 therms
Avista Utilities
P O Box 3727
Spokane, WA 99220
509-489-0500
(Spokane)
208-664-0421
(Coeur d’Alene)
208-743-5541
(Lewiston)
208-882-7511
(Moscow)
Residential Rates
Basic Charge $3.28
$0.47011/therm