HomeMy WebLinkAbout20050421Direct Mailing Press Release.pdfII:MO
POWER
IDAHO POWER COMPANY
O. BOX 70
BOISE, IDAHO 83707
BARTON L KLINE
Senior Attorney
An IDACORP Company
April 19 2005
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Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
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Re:Case No. IPC-05-
Power Cost Adjustment Filing
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Dear Ms. Jewell:
In my letter dated April 15 2005 , regarding the Company s 2005/2006
PCA filing, I informed the Commission that the Company would provide copies of its
direct mailing and press release regarding the PCA filing when they were available.
Enclosed are three copies of the Company s direct mailing and press release. This
direct mailing is scheduled to be mailed to all customers by the middle of next week.
Very truly yours
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Barton L. Kline
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Enclosures
Ric Gale
Celeste Schwendiman
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April 15 2005 ;L) i.J ;,; 1 C
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For Immediate Release
Dennis Lopez
208.388.2464
dlopez ~ idahopower.com
Idaho Power Proposes To Keep Power Cost Adjustment Level
Defer Cost Recovery One Year
BOISE---In its annual Power Cost Adjustment (PCA) filing with the Idaho Public
Utilities Commission (IPUC), Idaho Power today proposed keeping the PCA component
of the company s Idaho customers' rates at the current level in order to reduce the
impacts of drought and other rate actions scheduled to be implemented June 1.
If approved by the IPUC today s action would defer $28.6 million in drought-
related power supply costs for collection next year, leaving the PCA portion of power
bills in Idaho at roughly 6/10 of one cent ($0.006039) per kilowatt-hour. However, other
IPUC decisions related to a new power plant and tax expense recovery will , if fully
implemented, increase Idaho customers' rates an average of 6.3 percent
The PCA allows the company and its customers to share in the benefits of good
water years through a downward adjustment in the PCA portion of rates " said Idaho
Power Vice President for Regulatory Affairs Ric Gale. "But six years of drought have
reduced our ability to optimize our hydroelectric system and we have had to rely more
and more on expensive generating resources such as coal or natural gas and upon
purchases from the wholesale energy market"
Gale said this year the impact of ongoing drought-related costs and other PCA-
related adjustments would have required the company to request an increase of $28.
million over the current PCA levels which would have represented an additional increase
of 4.75 percent in monthly electricity bills.
Filing Is Part Of Other Rate Actions
The company has asked for this action to take place on June 1 , when other rate
changes will or may take place. These include:
. A request before the I PUG to include the costs of constructing the new Bennett
Mountain Power Plant. This would mean an annual increase of $9.6 million
which, if approved by the I PUG would increase rates approximately 1.84 percent.
. A prior commission action involving Idaho Power s federal income tax expense
related to a general rate increase granted by the IPUC in June2004. This will
result in an increase of approximately 4.45 percent. Of this amount almost half
or 2.2 percent, will expire in June 2006.
The overall impact of the PCA filing and other approved and potential increases on
the monthly electricity bill of an average customer who uses 1 200 kilowatt-hours of
electricity monthly would be from $77.34 to $81.68 during summer months and from
$71 .59 to $75.68 during non-summer months.
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