20080416Press Release.pdf

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For Immediate Release
Dennis Lopez
208-388-2464
dlopez ~ idahopower .com
Idaho Power Files Annual Power Cost AdjUstm~lJt~i¡Iljr~JfHöUr-~~\ŠSlmt
Hot Summer Of 2007 Results In Higher PCA Rate IiYUtJ81 . ~
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BOISE, tdaho(April15) - Idaho Power today submitted its annual Power Cost
Adjustment (PCA) filing to the Idaho Public Utilities Commission (IPUC) that reflects the
company's fuel costs for generating electricity and power purchases.
If approved, today's filing means a rate increase of slightly more than sixth-tenths of a
cent per kilowatt hour (0.647 cents) for the company's Idaho customers. For the average
residential customer using 1,050 kilowatt-hours of electricity each month, the monthly increase
will be approximately $6.80. Overall, this year's fiing will increase PCA rates by $87 million, or
12.76 percent on average. The actual percentage of change varies by customer group based
upon the rate they pay for electricity.
'We had a long, hot summer last year," said Idaho Power Vice President for Regulatory
Affairs Ric Gale. "A string of summer days with temperatures above the 100 degree mark brought
a record-setting customer demand for electricity. At the same time we had a run-off of just 2.8
million acre-feet which meant reduced hydropower generation. It wasn't a good combination for
our customers or us."
Gale said customers broke the company's previous record for power use five times
before establishing an all-time high of 3,193 megawatts.
IPUC Order On Emission Credit Sales Wil Reduce PCA Impact
In a related matter, the (PUC Tuesday (April 14) issued an order determining thedisposition of sulfur dioxide emission sales made by Idaho Power during calendar year 2007.
The commission ordered $16 million in proceeds from the sale to be applied to help offset the
PCA deferral balances incurred during this last year. The IPUC order said $500,000 from the
sale may be used to fund an energy education program.
Due to April 15 PCA filing deadline, today's submission does not reflect the impact of this
order; however, the company will promptly comply with the order to ensure the rate reduction is
included in the PCA rate change scheduled for June 1, 2008. The exact impact of the reduction
on PCA rates is unknown at this time, however, it is expected to reduce the requested $87 millon
to $71 millon.
2008 Stream Flows Improve Over 2007
There is a relationship between stream flow in the Snake River and Idaho Power rates.
Flows this year are expected to be 5.4 million acre-feet (maf) between April and July,
substantially better than last year's 2.8 maf.
In years when water is plentiful Idaho Power can more fully utilize its 17 -dam
hydroelectric system, the company's power production costs are lower and Idaho Power shares
those benefits with its customers.
However, when hydro generating conditions are poor as they were last year, Idaho
Power must use more expensive resources to meet its customers' need for electricity. These
include greater reliance upon the company's portion of three jointly-owned coal fired plants in
Nevada, Oregon and Wyoming and upon wholesale power purchases.
-More
2007 PCA Filing-Page 2
Customers Receive Full Hydro Benefit This Year
Under traditional PCA calculations, customers receive 90 percent of the benefit of
increased hydro generation, nearly $42 millon this year. However, this year the company
proposes to give the entire benefit of the increased hydro generation to its customers, raising
their hydro benefit to $44 million. This amount, with additional miscellaneous benefits, wil be
applied against the $132 milion of unrecovered expenses from 2007. The recommendation to
move to 100 percent from 90 percent also will affect the look-back portion of next year's PCA
calculation.
The runoff projections are provided by the US Weather Service's Northwest River
Forecast Center (NRFC) in Portland, Ore. According to NRFC records, the 30-year average
stream flow into Brownlee during the April-through-July period is 6.3 maf.
Below is the typical monthly amount paid by a typical residential customer using 1,050
kilowatt-hours (kWh) per month. It reflects both summer and non-summer seasons under the
current PCA rate compared to the new PCA rate expected to become effective June 1.
Season Current Bill Bill after June 1 , 2007
Summer $72.76 $79.56
Non-Summer $67.32 $74.12
This chart illustrates the overall percentage increase for each major customer group as a result of
the proposed PCA.
Residential
Small Commercial
Lar e Commercial
Irri ation
Industrial
0.2419 cents
per kilowatt-
hour
0.8891
cents per
kilowatt-hour
10 ercent
8 ercent
14.4 percent
12.7 ercent
18.6 percent
The public can review the company's PCA application at the offices of the IPUC or Idaho
Power or on the company's "Regulatory Information" Web page at www.idahopower.com.
About Idaho Power
Idaho Power is a regulated electric utility that began operations in 1916. Today, Idaho
Power employs approximately 2,050 people throughout the company's service region. At the
close of 2007, the company served 481,651 general business customers in a 24,000 square-mile
service area in southern Idaho and eastern Oregon. To learn more about Idaho Power, visit
www.idahopower.com.
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