HomeMy WebLinkAbout20051028Customer Notice.pdf- -
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An iDACORP Company Notice of Application To Increase Rates 2.'8 Pt'\ 2.:~3
Dear Idaho Power Customer:
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On Oct. 28 Idaho Power filed a request with the Idaho Public Utilities Commission (IPUC) for a 7.
percent increase in the base rates we charge all of our Idaho customers. There are many reasons for this
request and this letter is my opportunity to share some of them with you.
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.
Many of the issues within this case were closely reviewed by the IPUC as part of the company
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. Not filing for such a prolonged period resulted in our company having to seek a double-
digit rate increase. In the wake of our last case, Idaho Power decided that it was in the best interest of its
customers to file more frequent but smaller cases, such as the one we filed last month.
With IPUC approval, 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.
The proposed rate changes vary for each customer group, although the same overall increase of
8 percent has been requested for each customer group. The chart below shows the average of all rate
components for our major customer groups. However, the current and proposed "average base rate" does
not include the annual Power Cost Adjustment component, which can increase or decrease the overall rate
depending on the company s energy costs through April 2006.
Residential
Small
Commercial
Large
Commercial
Industrial
IITi ation
91 cents 22 cents
99 cents
4.42 cents
23 cents
76cents
If this request is fully authorized by the IPUC, the additional amount we are seeking would mean an
increase of approximately $5 a month on the power bill of an average Idaho Power residential customer who
uses 1 200 kilowatt-hours per month.
It is important to understand that Idaho Power s application is a proposal subject to public review
and a Public Utilities Commission decision. Copies of the filing are available on thelPUC website
(www.puc.state.id.us), Idaho Power's website (www.idahopower.com) or at the commission office, 472 W.
Washington St. Copies also are available at Idaho Power s corporate headquarters, 1221 W. Idaho St.
Boise or at Idaho Power offices in Boise, Nampa , Emmett, Payette, McCall, Mountain Home, Gooding,
Hailey, Twin Falls, Heyburn , American Falls, Pocatello, Blackfoot or Salmon.
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Ric Gale
Vice President, Regulatory Affairs