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Home My WebLink About20070611Business customer notice.pdfJune 8, 2007 Dear Business Customer On June 8, Idaho Power filed a request with the Idaho Public Utilities Commission to increase the base rates for all of our customers by an average of 10.35 percent. Please allow me to share some of the reasons for this proposed increase and to suggest some ways you can lessen the impact of higher electricity rates on your business. This proposed rate increase is scheduled to become effective in January of next year. Rates And Service Reliability Between 2006 and the end of this year Idaho Power will have placed in service $300 million of additional investmenL in its system, including improvements and upgrades to our established power plants. power lines and substations, as well as building new facilities, or buying new equipment like trucks and computers. Operating and maintenance expenses have increased substantially over the same two-year period, driven by the increased levels of power purchases, continued rapid customer growth, and inflation. All of these activities are directly tied to our ability continue to provide you reliable energy service today and in the future. I've included more information on the back of this letter to further explain this issue Efficient Use Can Help You Manage Your Bill Idaho Power is committed to promoting energy efficiency as a way to slow the increasing demand for electricity and to manage rising energy costs. Whether s purchasing energy efficient products, participating in one of our efficiency programs or using a little less electricity whenever possible, there are ways you can lessen the impact of this proposed increase. VIle offer tips, solutions, and programs at 'ww\",.idahopower.com that can help you do this. Please visit the Energy Center" and select information corresponding to your business type. A variety of program offerings are available that have already saved participating customers energy and money and can help you save in your business. Rates Remain Among Nation s lowest Independent annual surveys consistently show that the prices you pay for electricity are among the country s lowest, a fact in which we have long taken pride. I again invite you to visit another area on our Web site- w\vw.idahopower. com! customerservice! rates! ele cpricemaps .dm-lO compare Idaho Power s rates with those paid in other areas ofthe country. With investor-owned util.ities across the nation facing similar issues and escalating costs. we believe that when this pending price adjustment is settled, your elecuiciry rates will still be among the lowest rates in America. loVe understand that you rely on us to provide you w.ith reliable serv.ice at a fair price and are committed to serving you in the most efficient, and responsible manner possible. Cordially, 12. C- ;ftd~ RicGale (I' Vice President, Regulatory Affairs IDAHO POWER~ An IDACORP company :tUDe -E -e/l - 0 Energy efficiency is a great way to manage your usage. Easy Upgrades for existing comm- ercial and industrial buildings offers up to $100,000 in incentives for energy- saving retrofits. About This Rate Request No doubt your first question about this proposed rate increase is "vVhy?" Not surprisingly, part of the answer is the issue of growth. Southern Idaho is growing in population and economic activity and we have spent millions of dollars since our lasT general rate case to keep pace with it, and we must spend even more to expand our electrical system to stay ahead of iT. However, even if we didn t add a single new customer we still would have to invest in our increasingly complex nenvork of power lines, transformers and substations to provide continued reliable service to our existiilg customers. Parts of this network are aging and require upgrades; others simply mUST be replaced. These expenditures are necessary to ensure that we have a reliable system of power generation delivery and service supporT. There also is the simple fact that it costs our company more to do business today than it did yesterday. Like other businesses, we are not immune to price increases that impact our operating costs. Our costs for vehicle fuel and other products used to provide electrical service to more than 470 000 customers have grown steadily. The framework under which we do business requires that we make investments in a prudent manner. Once made, we seek approval from our regulators to increase prices and begin recovery of these various investments and expenses. If approved by the Idaho Public Utilities Commission, this proposal would increase Idaho Power s revenues $6.1 million annually so that we could begin recovery of our capital investments and higher operating costs. action, you can offset some of the impact of any price increase. Consider simple measures in your daily operations or join others in one of energy efficiency programs. You find our energy efficiency resources, including more details on the programs listed on the front, in the "Energy Center at www.idahopower.com. When Will This Increase Begin? This is a proposed change and is subject to public review and Idaho Public UTilities Commission approval. We anticipate a commission decision will be made in January 2008. The filing is accessible at Idaho Power s Web site -www.idahopower.com-or at the commission s \Neb site-www.puc.state.id.us. Copies will be available for review at the commissions office, 472 W. Washington Street, Boise, ID, as well as Idaho Power offices in Boise, Nampa Emmett, PayeTte, McCall, Mountain Home, Gooding, Hailey, Twin Falls, Pocatello, Blackfoot or Salmon. Didn t My Rates Just Go Up? This request only will affect the base rate portion of the price you pay for electricity which has remained unchanged since 2006. However, the other portion of your rates, the yearly Power Cost Adjustment, affects the total amount you pay. This adjustment takes place every year on Jllne 1st and reflects snow pack and stream flow conditions that dictate hydroelectric generating conditions. \Vhen snow packs are good, your rates go down, as they did last year. Conversely when snow conditions are poor, rates are adjusted upward as they were this year. Overall Percentageof Increase 15.13.15.20. Current Average Base Rate Proposed Average Base Rate RESIDENTIAL tP 2007 lo,h" Power SMALL COMMERCIAL IRRIGATIONLARGE COMMERCIAL INDUSTRIAL P,'nted 0'1 '=cyded pepe:.