20080317Press Release.pdf

Mar. 14, 2008
An IOACORP company
For Immediate Release
Dennis Lopez
[phone]
dlopezcæidahopower.com
Idaho Power Files Requests With Idaho Public Utilties Commission
BOISE, IDAHO (Mar. 14, 2008)--ldaho Power today filed applications with the Idaho Public
Utilties Commission (IPUC) requesting commission approval of two actions related to energy
efficiency initiatives. One action seeks the first rate adjustments under the pilot Fixed Cost
Adjustment (FCA) while the other proposes increased funding for energy effciency.
Fixed Cost Adjustment
The first application proposes rate changes for residential and small commercial customers
in compliance with the FCA. The purpose of the FCA is to encourage utility investment in energy
efficiency programs and activities. This is a three-year pilot program approved by the IPUC last
year. It authorizes Idaho Power to separate the recovery of fixed costs of providing electrical
service to its residential and commercial customers from the actual sale of electricity to these
customers.
Electricity rates include a variable cost component containing the cost of electricity. The
fixed cost component is tied to the cost of power lines and infrastructure required to deliver
electricity. Normally utilities recover these two cost components through electricity sales. When
recovery of fixed costs is tied to the sale of electricity, utilities have a disincentive to encourage
reduced energy usage since the reduced usage results in the loss of the fixed cost recovery.
Energy effciency is an important part of Idaho Power's resource portolio that balances
electricity supplies with demand for energy. When the IPUC authorized this mechanism, its
intent was to facilitate energy efficiency investments for residential and small business
custorlers.
The FCA provides for an IPUC-determined amount of fixed costs to be recovered from
residential and small commercial customers. If, because of reduced electricity use during the
year, the company under-collects 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.
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Idaho Power - Page 2
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 monthly reduction beginning June 1. Due to under-
collection, small commercial customers are proposed to receive a 3.0 percent monthly
surcharge June 1.
Increase In Energy Efficiency Rider
Idaho Power also filed a request to increase the monthly Energy Effciency Rider for all
customers from 1.5 percent of a customers' electricity bil to 2.5 percent. Energy efficiency
programs play an important role in helping customers save energy and money.
These programs help Idaho Power meet a growing need for electricity by reducing the
amount of power the company must buy or generate. Last year the company's combined energy
efficiency programs saved 91.2 milion kilowatt-hours (kWh) of electricity or enough energy to
serve over 7,200 homes for one year.
If approved, this proposal wil collect approximately $16 million annually or an increase of $7
milion over the current annual amount. With funds generated by this increase the company will
continue to enhance and expand its energy efficiency programs providing cash incentives along
with information and services to its retail customers.
Overall Impact of These Actions
If approved by the Idaho Public Utilties Commission, these requests collectively wil have
differing impacts on the rates paid by Idaho customers. The chart below shows the average
change for each customer group.
Customer Group Overall Percent Change
Residential Less than 1%
Small Commercial 3.9%
Large Commercial 1.0%
Irrigation 1.3%
Industrial 1.0%
For an average residential customer using 1,050 kilowatt-hours of electricity each month,
the bill would decrease by a few cents each month.
Idaho Power's proposals are open to public review and comment. They are on the
company's Web site-ww.idahopower.com/rates. Copies also are available at Idaho Power's
offices and at the Idaho Public Utilities Commission offices in Boise.
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