20080327Customer Notice.pdf

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*SIDA~POR~
An IDACORP Company
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DONOVAN E. WALKER
Attorney II
March 26, 2008
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-08-01
IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY FOR AUTHORITY TO INCREASE ITS RATES AND
CHARGES FOR ELECTRIC SERVICE DUE TO THE INCLUSION
OF THE DANSKIN CT1 PLANT IN RATE BASE
Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of the
Company's bil insert referenced on page 5 of the Application filed March 7, 2008.
I would appreciate it if you would return a stamped copy of this transmìttal
letter in the enclosed self-addressed, stamped envelope.
ours,
. f!(~
Donovan E. Walker
DEW:sh
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
7-- ,ti~..i:""....,"1
DONOVAN E. WALKER, ISB No. 5921
BARTON L. KLINE, ISB No. 1526
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Tel: [phone]
Fax: [phone]
dwalker(áidahopower. com
Mi'R 26 An 2: 58
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-08-01
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC SERVICE ) CUSTOMER NOTICE
DUE TO THE INCLUSION OF THE )
DANSKIN CT1 PLANT IN RATE BASE )
)
)
As referenced on page 5 of the Application fied March 7, 2008, Idaho
Power Company hereby files the following bil insert that the Company wil mail to
its customers from March 26, 2008 to April 24, 2008.
DATED this 26th day of March, 2008.
D NOVAN E. WALKER
Attorney for Idaho Power Company
CUSTOMER NOTICE, Page 1
~IDA~POR.
An IOACORP Company
Information About
Your Electricity Bil
Offering programs and information to help our customers save energy and
money is part of providing safe, reliable and fair priced electricity. Building
power plants to ensure future energy needs are met is another. Meeting
these commitments requires periodic fiings with the Idaho Public Utilties
Commission (IPUQ to adjust the prices you pay for elecicity. Idaho Power
filed three request with the (PUC in March which may affec your rates.
Energy Effciency Programs
Energy efficiency programs can help you save energy and dollars. They
also help Idaho Power meet a growing need for elecricity by reducing the
amount of electricity we buy or generate. Our energy efficiency programs
provide cash incentives, information and services to our residential,
commercial, industrial and irrigation customers. To expand these
programs we're seeking approval to adjust the amount colleced through
the existing Conservation Program Funding Charge from 1.5 percent of
your monthly energy bil, to 2.5 percent. All of the funds collected by this
charge go directly to energy effciency. None is retained by Idaho Power.
The filng was made March 14,2008 and proposes to collect $16 millon
annually or an increase of $7 milion over the current annual amount. To
learn more about these programs or to enroll visit ww.idahopowr.com/
energycenter.
Fixed Cost Adjustment
The purpose of the Fixed Cost Adjustment (FCA) is to encourage utilities
to invest in energy effciency programs and activities. Your elecricity rates
include a variable cost component that contains the cost of elecricity, and
a fixed cost component tied to the cost of power lines and infrastructure
required to deliver electricity.
Normally utilties recover these two cost components through elecricity
sales. When recovery of fixed costs is tied to the sale of electricity, utilties
have a disincentive to encourage reduced energy usage since it results in
the loss of the fixed cost recovery.
The FCA is a threeyear pilot program approved last year by the ¡PUC.
It authorizes Idaho Power to separate the recovery of the fixed costs of
providing elecrical service to its residential and commercial customers
from the actual sale of electricity to these customer groups. It is intended
to make the company financially neutral when it invests in energy
efficiency programs for residential and small busines customers.
The FCA provides for an IPUC -determined amount of fixed costs to be
recovered from residential and small commercial customers. If, becuse
of reduced electricity use during the year, the company under-collect
the authorized fixed cost amount, it can collect the difference through
a surcharge; If Idaho Power over-collects the authorized amount, the
company refunds the difference through a credit.
During 2007, the company over-collected fixed costs from residential
customers and under-collected fixed costs from its commercial customers.
Therefore, residential customers are proposed to receive a 1.17 percent
credit beginning June 1. Due to under-collection, small commercial
customers are proposed to receive a 3.0 percent surcharge beginning
June 1.
New Power Plant
Having adequate resources today and tomorrow is another part of our
commitment. On March 7, Idaho Power filed an application with the IPUC
for approval to place the construction costs for a 170 megawatt natural
gas-fired power plant into base rates. Part of the Evander Andrews Power
Complex near Mountain Home, Idaho, this plant helps meet energy needs
during peak times such as long, hot summer afternoons when energy
supplies are low and costs for power are high. If approved, this action wil
increase all customers' rates uniformly by an average of 1.4 percent and
would produce an estimated $9 million in additional revenue per year.
Overall Impact of These Actions
If approved, these requests collecively will have differing impacts on the
rates paid by our customers. The chart below shows the average change:
Custmer Group Overall Peroent Changeäia$Small Commercial 5.3%
U'¡S,)"iul",;i' ~'.
Irrigation 2.7%diM ~'.
For an average residential customer using 1,050 kilowatt -hours of
electricity each month, the monthly bill would increase by $1.01
per month during June, July and August and by 78 cents during
non-summer months.
Idaho Power's applications are proposals open to public review and
comment and subject to IPUC approval. They are available on the
company's "Regulatory Information" Web page at wwiiv.idahopower.coml
aboutus. Copies also are available at Idaho Power offices or at the Idaho.
Public Utilties Commission office in Boise.
Our intention is to keep our customers informed about changes that
affec them. We encourage you to leam about energy effciency and
to parter with us to use our resources wisely.