20051028Press Release.pdf

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October 28, 2005
For Immediate Release
Dennis Lopez
[phone] or
Jeff Beaman
[phone]
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Idaho Power Files For General Rate Increase
BOISE-Idaho Power today filed an application with the Idaho Public Utilities
Commission (IPUC) to increase the company s general rates an average of 7.8 percent The
proposed increase would apply to Idaho customers' base rates, the portion that pays for Idaho
Power s actual cost of conducting business such as maintenance and operating expenses and
capital investments. The new rate could become effective June 1 , 2006 should the IPUC take the
maximum amount of time to process the request
Today's filing is only the second such request since 1993. Many of the issues within this
case were closely reviewed by the IPUC as part of the company's last general rate request filing
two years ago. This filing represents adjustments to the company's operating requirements since
that time.
There were several issues that delayed our 2003 general rate filing including an energy
crisis here in the Northwest," said Idaho Power President and Chief Operating Officer LaMont
Keen. "Not filing for such a prolonged period resulted in our having to seek a double digit rate
increase. In the wake of our last case , we decided that it was in the best interest of our customers
to file more frequent but smaller cases, such as the one we filed today."
Keen said the proposed price change would result in an annual revenue increase of $44
million to help offset the company s yearly operating costs of approximately $606 million to
provide electrical service to its customers in Idaho.
Impact To Monthly Power Bills
For an Idaho Power residential customer who uses an average of 1 200 kilowatt-hours
(kWh) today s proposed increase would change the monthly bill from $74.23 to $79.18 during
non-summer months. In June, July and August, the monthly bill would increase from $80.22 to
$85.38.
The proposed increase would be applied equally to all customer groups. The chart
below shows how the increase would impact the average base rate, which includes all rate
com onents, for various customers.
Residential
Small Commercial
Lar e Commercial
Industrial
Irri ation
74 cents
16 cents
91 cents
99 cents
4.42 cents
19 cents
72 cents
22 cents
23 cents
76cents
PCA Component Not Reflected In Today s Request
The proposed rates do not include the current Power Cost Adjustment (PCA) that adjusts
rates each spring. The PCA varies each year and is largely driven by stream flow conditions in
the Snake River that determine the amount of electricity the company can generate from its
system of hydroelectric dams.
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Rates-Page Two
When flows are higher than average, the PCA reduces the total rate paid by customers.
However, when flows are poor and the company must rely more upon its coal or natural gas-fired
plants and the wholesale electricity market, the PCA increases the total rate. The PCA changes
each year on June 1 following an IPUC review.
Increase Applies Equally
Idaho Power is proposing that the rate increase be spread equally to all major customer
groups and special contract customers. Additionally, the company is proposing some pricing
changes within various customer classes to better align prices with costs.
Regulatory Review and Public Comment
Following today s filing the IPUC will begin a comprehensive review of the application and
will seek public input on the company s request The process ensures that customers and
regulators have the opportunity to review the company's costs.
Copies of the filing are available on the IPUC website (www.puc.state.id.), Idaho Power
website (www.idahopower.com ) or at the commission offices (472 W. Washington St , Boise).
Copies also are available at Idaho Power s corporate headquarters, 1221 W. Idaho St., Boise or
at Idaho Power facilities in Boise, Nampa, Payette, Emmett, McCall, Mountain Home, Gooding,
Hailey, Twin Falls, Heyburn, American Falls, Pocatello, Blackfoot and Salmon.
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