electric.PDF

2001
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
2000 Average Number of Customers/Avg. Revenue/kwh*
(*Computed from data available in FERC Form 1 Annual Reports)
309,499 Residential Customers/$0.0515
60,321 Commercial Customers/$0.0379
104 Industrial Customers/$0.0277
Avista Utilities
88,688 Residential Customers/$0.0522
14,329 Commercial Customers/$0.0558
556 Industrial Customers/$0.0472
PacifiCorp/Utah Power
43,887 Residential Customers/$0.0729
6,172 Commercial Customer/$0.0665
5,332 Industrial Customer/$0.0406
Idaho’s
Electricity
Rates Are
Among The
Lowest In
The Nation
IDAHO PUBLIC UTILITIES COMMISSION Page 162001
ANNUAL REPORT
Power Rates in Idaho
As of Nov. 1, 2001
These rates do not include customer charges or BPA credits. Not all
available rate schedules are shown for each utility. These include
updated rate information on Idaho Power and Avista Utilities cases
that ended in the fall of 2001.
IDAHO POWER COMPANY
Residential
First 800 kWh — $0.0616
Next 1200 kWh — $0.0697
All use over 1200 kWh — $0.0839
Commercial
Small commercial — $0.0769, plus $2.73 per kW demand charge
Large commercial — $0.0434, plus $2.73 per kW demand charge
Industrial
Large industry — $0.0428; plus $2.73 per kW demand charge
Irrigation — $0.0456 in season; plus $3.58 per kW demand charge in season.
AVISTA UTILITIES
Residential
First 600 kWh — $0.0549
All use over 600 kWh — $0.0639
Commercial
Small commercial — $0.0795 plus $3.50 per kW demand charge for demand
more than 20 kW
Large commercial — $0.05007 plus $225 for first 50kW of demand or less
and $2.75 per kW for demand over 50 kW
Industrial
Large industry — $0.0348 per kWh plus $7,500 for first 3,000 kVA (kilovolt-
amps) of demand or less and $2.25 per kVA for demand over 3,000 kVA.
2001
ANNUAL REPORTPage 17 IDAHO PUBLIC UTILITIES COMMISSION
Power Rates in Idaho, continued
PACIFICORP-UTAH POWER
Residential
From May to October — $0.0983
From November to April — $0.0749
Time of Day residential rates
On-peak use from May to October — $0.1049
Off-peak use from May to October — $0.0362
On-peak use from November to April — $0.0897
Off-peak use from November to April — $0.0330
Commercial
Small commercial, May to October — $0.0828
Small commercial, November to April — $0.7320
Large commercial — $0.0275 plus $10.68 per kW demand charge from May
to October and a $8.79 kW demand charge from November to April.
Industrial
Small industry — $0.0315 per kWh plus $8.79 per kW demand charge from
May to October and a $6.59 per kW demand charge from November to April.
Irrigation
First 25,000 kWh — $0.0520, plus $4.01 per kW demand
Use over 25,000 kWh — $0.0379, plus $4.01 per kW demand
IDAHO PUBLIC UTILITIES COMMISSION Page 182001
ANNUAL REPORT
Electric Utility Case Reviews
Idaho Power Company
Idaho Power Co. is Idaho’s largest electric utility. The utility typically
generates almost 60 percent of its electricity at hydroelectric dams on the
Snake River. Due to the extremely poor hydro conditions in 2000, only 52
percent of the utility’s electric generation came from hydro with increased
reliance on the company’s coal-fired plants (at Jim Bridger, Wyoming;
Boardman, Oregon; and Valmy, Nev.) and power purchases on the wholesale
market. Less than 5 percent of Idaho Power’s generation comes from co-
generators and small independent power producers.
In 2000, the average Idaho Power household used 13,580 kWh, up
2.2 percent from the 13,276 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.
September 28, 2001
IDAHO POWER GRANTED RECORD ONE-YEAR SURCHARGE
Case Nos. IPC-E-01-7, IPC-E-01-11, Orders No. 28722 and 28852
A record low water year and one of the most volatile electric and gas
wholesale markets in history led to a request from Idaho Power to recover
$227.4 million from its customers to cover power purchases made on the
wholesale market during 2000 and early 2001.
Each spring since 1993, Idaho Power has filed with the commission a
“power cost adjustment” that annually increases or decreases customer rates
for above normal or below normal costs of supplying power. If costs for buying
power are higher than anticipated, the result is a one-year customer surcharge.
If costs are lower than expected, there is a credit. Up until 2001, Idaho
Power’s largest power cost adjustment was for $14.8 million in 2000. During
three of the last nine years, power supply costs were lower than anticipated, as
in 1999 when the adjustment was a negative $23.1 million. Idaho Power’s
2001 request to recover $227.4 million is, by far, the largest PCA since the
annual adjustment began.
The commission approved $168.3 million of Idaho Power’s request on
May 1, but deferred the remaining $59.1 million for further investigation. On
Sept. 28, the commission approved another $47.66 million in recovery for the
company, but disallowed $11.6 million.
To mitigate the size of the increase, which amounted to about 23
percent to residential customers, commissioners took a number of steps,
including negotiation of a rate credit with the Bonneville Power Administration
(see below).
Number of Customers
= 369,924
Idaho Power Company
1220 W. Idaho Street
P O Box 70
Boise, ID 83707
800-488-6161
208-388-2323
(Treasure Valley)
2001
ANNUAL REPORTPage 19 IDAHO PUBLIC UTILITIES COMMISSION
Electric Case Reviews, continued
The commission also ordered Idaho Power to file a demand-side
management (conservation) program that would decrease the need for the
company to buy power on the volatile wholesale market. That plan was still
under review by publication deadline.
Further, the commission opened a separate case that will review Idaho
Power’s trading practices.
October 1, 2001
BPA CREDIT GIVES IDAHO POWER CUSTOMERS SOME
RELIEF
Case No. IPC-E-01-30, Order No. 28868
The Northwest Regional Power Act of 1980 established a residential
and small-farm exchange program that required BPA to provide residential and
small-farm customers of Northwest electric utilities a share of the benefits from
the federal hydroelectric projects located in the region. The program technically
expired in 2001 but the credit was revived through BPA’s new power subscrip-
tion process.
The Idaho Public Utilities Commission worked extensively with commis-
sioners from Washington, Oregon and Montana to negotiate an agreement with
BPA that will last 10 years, though it can be modified after five years.
To the Idaho Power residential customer who consumes 1,200 kWh a
month, the reduction is about $3.60 a month. For a small-farm customer using
100,00 kWh a month, the reduction would be about $300.
“There were multiple negotiation sessions involving all three of Idaho’s
commissioners,” said Paul Kjellander, president of the Idaho commission. “We
are grateful that these benefits could come at a time that offsets some of the
increases we’ve seen,” Kjellander said.
May 12, 2001
COMMISSION OKs BUYBACK PROGRAMS
WITH IRRIGATORS, INDUSTRY
Case No. IPC-E-01-3, Order No. 28676; Case No. IPC-E-01-4, Order No. 28707
A record low runoff in the Snake River and an extremely volatile
wholesale market that saw electric prices increase from about 3 cents a kWh to
as high as 50 cents per kWh led to measures that could prevent Idaho utilities
from having to buy power on the wholesale market.
Idaho Power negotiated power buyback agreements with Idaho irriga-
tion customers and its large industrial customers.
Idaho Power offered to pay irrigators 15 cents for each kWh saved
IDAHO PUBLIC UTILITIES COMMISSION Page 202001
ANNUAL REPORT
from irrigators who agreed to save at least 100,000 kWhs. At the time the offer
was made, power on the wholesale market was selling for about 30 cents a
kWh. Bids were received from about 429 Idaho irrigators who were expected
to save about 500 million kilowatt-hours.
The commission also approved (Case No. IPC-E-01-6, Order No.
28706) a pilot program allowing up to 300 irrigation customers to participate in
a “time-of-day metering” program. This program did not necessarily save
energy, but it allowed customers, with the use of special meters the company
installed, to shift their energy use away from peak power times, when energy is
more expensive, . Irrigation customers representing about 180 metered service
points participated in the program.
A buy-back program for commercial and industrial customers capable
of reducing consumption by 1,000 kilowatt hours was extended for one year by
the commission. Customers get a credit against their bill for the energy saved.
The commission approved a buy-back agreement between Idaho
Power and Astaris, which, at that time, was Idaho Power’s largest customer.
(Case No. IPC-E-01-9, Order No. 28678) The company agreed to pay
Astaris 15.9 cents for each kWh not used by the company. The Pocatello
company idled two of its four furnaces and put a third on stand-by.
Electric Case Reviews, continued
2001
ANNUAL REPORTPage 21 IDAHO PUBLIC UTILITIES COMMISSION
PacifiCorp-Utah Power
Based in Salt Lake City, Utah Power, a division of Portland-based
PacifiCorp, provides electricity in eastern Idaho. It is the third largest electric
utility in Idaho.
Utah Power relies more heavily on thermal generation facilities than any
other electric utility in Idaho.
There were no rate increases or decreases to Idaho customers of
PacifiCorp-Utah Power during 2000. As part of the commission’s approval of a
merger between PacifiCorp and ScottishPower on Nov. 15, 1999, the utility
agreed to a moratorium on rates through the end of 2001.
In 2000, the average UP&L residential customer used 13,069 kWh of
electricity, a 1.5 percent decrease from the 13,276 kWh average in 1999. This
figure averages residential customers with electric space and water heating with
those who do not use electricity for these high load uses.
April 4, 2001
PUC ARRPOVES MODIFIED IRRIGATION BUYBACK PROGRAM
Case No. PAC-E-01-4, Order No. 28702
BOISE - The Idaho Public Utilities Commission approved an irrigation
buyback program for customers of PacifiCorp in southeastern Idaho.
PacifiCorp agreed to increase- from 12 cents per kWh to 15 cents - the
amount it proposes to pay irrigators who agree to disconnect their participating
pumps. The company will pay 13.5 cents per kWh to irrigators who remain
connected to the company’s system.
Originally, PacifiCorp offered to pay 8.5 cents per kWh to irrigators
who agree to disconnect their pumps in an effort to save energy. Commission-
ers originally voted to delay approval of the PacifiCorp program to encourage
the company to offer a program more responsive to the needs of irrigators. They
upped its offer to 15 cents to those who completely disconnect and 13.5 cents
to customers who reduce some of their pumping. All three commissioners
commended the company for its willingness to modify the program to include a
higher payment to irrigators.
“It’s definitely an improvement from what we had a week ago,” said
Commissioner Dennis Hansen. “Irrigators in southeast Idaho seem a lot more
comfortable with it.”
PacifiCorp estimates that between 20 and 25 percent of 2,000 eligible
irrigator customers will participate in the program, which is designed to decrease
demand during high-peak periods this summer and benefit all ratepayers by
reducing the amount of electricity the company has to buy on the expensive
wholesale market.
Number of Customers
= 55,391
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 Case Reviews, continued
IDAHO PUBLIC UTILITIES COMMISSION Page 222001
ANNUAL REPORT
June 1, 2001
IPUC APPROVES PACIFICORP
CUSTOMER CHALLENGE PROGRAM
Case No. PAC-E-01-7, Order No. 28743
The Idaho Public Utilities Commission approved a PacifiCorp conser-
vation program rewarding the company’s southeast Idaho customers who
reduced their monthly usage by 10 percent or more from their previous year’s
usage.
Customers saving 10 percent over their previous year’s usage in July,
August and September received a 10 percent reduction on those months’ bills.
Customers who saved 20 percent got a 20 percent reduction for the months of
June, July, August and September.
Initially, the company proposed to reward only those customers who
reduced their monthly kilowatt usage by 20 percent or more. But the commis-
sioners expressed concerns that 20 percent savings would be too difficult to
achieve, particularly in southeast Idaho where few customers have air condi-
tioning. In response to those concerns, PacifiCorp revised its program to
reward customers who reduce their kilowatt usage by 10 percent.
In another effort to conserve energy during a year of record-setting
wholesale prices for electricity, the commission approved a PacifiCorp program
(Case No. PAC-E-01-1, Order No. 28628) to buy back commitments for
electricity from its commercial and industrial customers using an Internet auction
process. Under the program, PacifiCorp customers with electricity require-
ments of more than 4,000 kilowatt-hours or customers with 1,000 kilowatt-
hours of onsite generation can “shed,” or sell back, electricity commitments to
the utility in an Internet auction. Commissioners ordered PacifiCorp to provide
the commission access to the secured Website for tracking and observation.
Electric Case Reviews, continued
2001
ANNUAL REPORTPage 23 IDAHO PUBLIC UTILITIES COMMISSION
August 28, 2001
PACIFICORP CREATES HOLDING COMPANY
Case No. PAC-E-01-8, Order No. 28836
The Idaho Public Utilities Commission approved an application from
PacifiCorp, allowing the utility to transfer the common stock of PacifiCorp to a
newly formed affiliate that will function as a holding company responsible for
PacifiCorp’s non-utility businesses.
The holding company, PacifiCorp Holdings Inc. (PHI), will facilitate the
further separation of PacifiCorp’s non-utility operations from its regulated utility
operations. That separation will reduce the exposure of the regulated side of
PacifiCorp’s business and its electric customers to any adverse results from its
non-utility operations.
The new holding company, incorporated under the laws of Delaware,
will receive all of the common stock presently held by NA General Partnership,
a holding company structure created when PacifiCorp’s merger with
ScottishPower was approved in November 1999.
The cost to accomplish the exchange of stock will not be borne by
customers and will not affect electric rates or service for the company’s 56,000
customers in southeastern Idaho where PacifiCorp operates as Utah Power.
The non-utility functions are enterprises, primarily financial services,
PacifiCorp provided before its merger with ScottishPower. Those enterprises
still exist but they are being de-emphasized as the company has redirected its
focus to strictly electric service since the merger.
When the commission approved PacifiCorp’s merger with
ScottishPower in 1999, it directed the company to “fully separate accounting
functions and provide full cost allocations” of any non-utility business.
PacifiCorp has filed a separate case with the commission (PAC-E-00-
6) that proposes to reorganize the regulated side of the company into individual
electric companies in its six-state region. The company would also create a
single generation business, “PacifiCorp Generation Co,” which would be able to
buy and sell power on the wholesale market on behalf of its six state entities,
one of which would be PacifiCorp Idaho, Inc. All six state companies,
PacifiCorp Generation, and a service company that performs centralized func-
tions, will operate under the newly proposed PacifiCorp Holdings, Inc.
The commission had not acted on this case nor had any hearing dates
been set at the publication of this report. The reorganization must be approved
by commissions in all six states.
Electric Case Reviews, continued
IDAHO PUBLIC UTILITIES COMMISSION Page 242001
ANNUAL REPORT
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 in Washington and Montana.
In 2000, the average Avista household used 11,719 kWh, almost
identical to the 11,723 kWh used during 1999. This figure averages residential
customers with electric space and water heating with those who do not use
electricity for these high load uses.
Oct. 15, 2001
COMMISSIONERS NEGOTIATE BPA CREDIT FOR AVISTA
CUSTOMERS
Case No. AVU-E-01-13, Order No. 28869
The size of the power cost adjustment granted Avista was somewhat
lessened with the announcement of a credit from the Bonneville Power Admin-
istration negotiated by commissions in four Northwest states, including Idaho.
Residential and small-farm utility customers in Avista’s northern Idaho
territory will get a monthly credit of about $3.37 for a household using 1,000
kWh per month and $4.72 for a household using 1,400 kWh.
The 10-year BPA credit is the result of lengthy negotiations between
the federal agency and commissioners in Idaho, Montana, Oregon and Wash-
ington. It is part of the Northwest Power Planning Act of 1980 that was de-
signed to help Northwest residents share in the benefits from the federal hydro-
electric projects located throughout the region.
Feb. 6, 2001
TEMPORARY 4.76 PERCENT INCREASE APPROVED FOR
AVISTA
Case No. AVU-E-00-9, Order No. 28627
The commission approved a request by Avista Corp. for a temporary
rate increase of 4.76 percent to help pay for its increased electric power supply
costs.
The increase boosted the monthly bill of a residential customer using
1,000 kilowatt-hours about $2.45 and went into effect Feb. 1, 2001 and was
set to expire on Jan. 31, 2002.
Electric Case Reviews, continued
Number of Customers
= 103,573
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)
2001
ANNUAL REPORTPage 25 IDAHO PUBLIC UTILITIES COMMISSION
Oct. 15, 2001
AVISTA GRANTED 14.7 PERCENT SURCHARGE
Case No. AVU-E-01-11, Order No. 28297
BOISE – The Idaho Public Utilities Commission approved Avista
Utilities’ request to impose a 14.7 percent surcharge on its customers to recover
the cost of buying power on the wholesale market over the last year. The
commission also granted an extension of a 4.7 percent surcharge implemented
earlier (see Feb. 6, 2001 press release previous page) that was set to expire
Jan. 31, 2002.
Avista applied for the combined 19.4 percent surcharge last July and
asked that it be effective for 27 months. But the commission allowed only a one-
year surcharge.
“We are uncomfortable with authorizing the extended surcharge period
requested by the company,” the commission said. The commission did authorize
the surcharge for 12 months and directed the company to file a status report 60
days before the surcharge expires. After reviewing that report, the commission
will consider continuing the surcharge for another year.
The surcharge, which became effective Oct. 12, 2001, increased
customer bills by about $7.55 a month for a customer who uses 1,000 kWh,
about a 13.7 percent increase. For a customer who uses 1,400 kWh, the
increase was $10.94 per month, about a 14.1 percent increase.
To mitigate the size of the increase, the commission approved a plan to
accelerate payments due Avista from Portland General Electric. Initially, the
company planned to spread out the PGE credit of about $34.6 million to benefit
customers over an extended period, but then decided to accelerate payments to
lessen the impact of the surcharge. Without it, Avista’s request would have been
almost double at about 33 percent.
The surcharge allowed the company to collect $23.6 million to pay for
power purchases costs in the high-priced wholesale market. The surcharge was
needed, Avista stated, because of a combination of the worst hydroelectric
conditions in 73 years and unprecedented high wholesale market prices and
volatility.
The commission noted the size of the surcharge is “extraordinary.” But
the threat to the company’s financial viability is also real, commissioners said.
“Indeed, the company’s financial ratings have already been downgraded,” the
commission said. “Lenders are wary of extending further credit without some
improvement in the company’s financial indicators.” Avista requested prompt
rate relief to get financing to support ongoing operations. Avista had been unable
to obtain final construction financing for its Coyote Springs II project, a natural
gas plant planned near Boardman, Oregon.
Electric Case Reviews, continued
IDAHO PUBLIC UTILITIES COMMISSION Page 262001
ANNUAL REPORT
April, 10, 2001
IPUC APPROVES AVISTA BUY-BACK PROGRAMS
Case No. AVU-E-01-4, Order No. 28698; Case No. AVU-E-00-10, Order No.
28595
Irrigators who save 50,000 kilowatt-hours or more from May through
September will be paid 10 cents for every kWh saved, under an irrigator buy-
back program proposed by Avista and approved by the commission.
Irrigation customers who save between 25,000 and 50,000 kWh will
be paid 5 cents per kWh.
The company estimates that about 2.5 million kilowatt hours could be
saved.
Earlier, on Dec. 19, 2000, the commission approved a buy-back
program for Avista’s large industrial and commercial customers.
Under the program, large users can voluntarily reduce power consump-
tion in return for credits on their power bills. The buy-back rate offered by
Avista amounts to about the wholesale market rate at the time.
Aug. 10, 2000
POTLATCH PETITION FOR SHARE OF CENTRALIA
PLANT DENIED
Case No. AVU-E-99-06, Order No. 28461
A petition by Potlatch Corp. to share in the customer gain from the sale
of Avista Corp.’s portion of the Centralia, Wash. power plant was turned down
by the Idaho Public Utilities Commission.
Avista sold its 15 percent stake in the ownership of the 1,340-mega-
watt power station and approximately $6.8 million of the gain from the sale was
to be returned to its Idaho customers. Potlatch was excluded from the distribu-
tion. In its petition, Potlatch asked the PUC to reassess its decision excluding
the company from receiving part of the gain from the sale.
The PUC noted that Potlatch’s service from Avista is based upon a
specific contract between the utility and the company that made no provision
for a share in the sale of the assets. The commission noted … “it is not because
Potlatch is a special contract customer that it is denied a share of the gain. It is
because the contract that it negotiated and presented to the Commission for
approval did not reserve or establish such a right” to a share in the gain from the
sale of the plant.
Electric Case Reviews, continued
Also Under IPUC
Jurisdiction:
Atlanta Power
Company
319 River Road
Bliss, ID 83314
208-352-4692 (Bliss)
208-764-2310 (Fairfield)
2001
ANNUAL REPORTPage 27 IDAHO PUBLIC UTILITIES COMMISSION
Atlanta
Power
RupertRupertRupertRupertRupertRupertRupertRupertRupert
MeridianMeridianMeridianMeridianMeridianMeridianMeridianMeridianMeridian
Post FallsPost FallsPost FallsPost FallsPost FallsPost FallsPost FallsPost FallsPost Falls
Coeur d'AleneCoeur d'AleneCoeur d'AleneCoeur d'AleneCoeur d'AleneCoeur d'AleneCoeur d'AleneCoeur d'AleneCoeur d'Alene
CaldwellCaldwellCaldwellCaldwellCaldwellCaldwellCaldwellCaldwellCaldwell
Twin FallsTwin FallsTwin FallsTwin FallsTwin FallsTwin FallsTwin FallsTwin FallsTwin Falls
BoiseBoiseBoiseBoiseBoiseBoiseBoiseBoiseBoiseNampaNampaNampaNampaNampaNampaNampaNampaNampa
BurleyBurleyBurleyBurleyBurleyBurleyBurleyBurleyBurley
ChubbuckChubbuckChubbuckChubbuckChubbuckChubbuckChubbuckChubbuckChubbuck
PocatelloPocatelloPocatelloPocatelloPocatelloPocatelloPocatelloPocatelloPocatello
Idaho FallsIdaho FallsIdaho FallsIdaho FallsIdaho FallsIdaho FallsIdaho FallsIdaho FallsIdaho Falls
SandpointSandpointSandpointSandpointSandpointSandpointSandpointSandpointSandpoint
MoscowMoscowMoscowMoscowMoscowMoscowMoscowMoscowMoscow
LewistonLewistonLewistonLewistonLewistonLewistonLewistonLewistonLewiston
PayettePayettePayettePayettePayettePayettePayettePayettePayette
RexburgRexburgRexburgRexburgRexburgRexburgRexburgRexburgRexburg
BlackfootBlackfootBlackfootBlackfootBlackfootBlackfootBlackfootBlackfootBlackfootMountain HomeMountain HomeMountain HomeMountain HomeMountain HomeMountain HomeMountain HomeMountain HomeMountain Home
JeromeJeromeJeromeJeromeJeromeJeromeJeromeJeromeJerome
ELECTRIC UTILITIES IN IDAHO
SERVICE AREAS OF INVESTOR OWNED
Avista Utilities
Idaho Power
Utah Power