20080627Press Release.pdf

For Immediate Release
eslDA~POe
An IDACORP company
June 27, 2008
Corporate Communications -;c-Ë-o g-¡()
Dennis Lopez
208-388-2464
dlopez(§idahopower.com
Idaho Power Files for General Rate Increase,
Decision Not Expected Until February 2009
. Higher reliability standards and infrastructure growth drives need for increase
. Residential rates projected to increase 6.3 percent
BOISE, Idaho (June 27, 2008)"'ldaho Power today filed an application with the Idaho Public Utilities
Commission (IPUC) to increase the company's base rates for electricity an average of 9.9 percent for its
Idaho customers.
Although the requested increase is for an average of 9.9 percent, the company's rate proposal impacts
various customer groups differently. For example, if the request is approved as filed, residential
customers would see an average increase of 6.3 percent. The monthly bill for a typical residential
customer using 1,050 kilowatt-hours (kWh) per month would increase from $66.06 to $69.83 during non-
summer months and from $70.21 to $74.86 per month during June, July and August.
"Two forces are driving this increase; growth in the number of customers and a growing demand for
electricity," said Idaho Power Vice President for Regulatory Affairs Ric Gale. "We have invested heavily
to ensure we can provide a safe and dependable supply of energy for our current and future customers.
This request seeks to recover those investments."
Since 2005, Idaho Power has invested $578.2 million in its extensive electrical system. This includes
construction of 13 new substations, adding 1,157 miles of distribution line, and 190 miles of transmission
lines.
In those same three years, the amount of electricity the utility purchased from other utilities grew from
$876 million to more than $2 billion. These purchases include renewable resources, such as wind and
geothermaL. Idaho Power also invested to increase its generating capacity to 3,267 megawatts compared
to 3,087 megawatts in 2005. A single megawatt can power at least 650 homes.
"Our investment in generation, transmission and distribution facilities ensures better system reliability.
However, to meet our customer's growing need for electricity, we must continue to make these
investments" Gale said.
The company's proposal would increase its revenues $67 million annually in order to begin recovering
previous capital investments and higher operating costs.
Efficient Use Of Electricity Is Encouraged
Gale said the proposed increase would add to customers' energy rates; however, Idaho Power is
committed to helping its customers take actions to use less energy as a means of helping them reduce
their electricity costs.
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Idaho Power - Page 2
"Energy, especially electricity, is becoming more and more precious," said Gale. "It should be conserved
much the way water is conserved here in our state. Idaho Power has several programs to help each of
our customer groups reduce their energy use to save both energy and money."
Gale encouraged customers to visit the "Energy Center" of the company's Web site - ww.
idahopower.com - to learn more about the programs offered and energy savings tips.
Rates Most Likely Wil Remain Among Nation's Lowest
According to Gale, the proposed new rates most likely would not change Idaho Power's standing as a
provider of low-cost energy.
"National surveys of investor-owned utilities repeatedly find Idaho Power's rates among the nation's
lowest," Gale said. "Idaho Power is not alone in facing the needs to expand and improve its infrastructure.
Other utilities across the country are facing similar issues and escalating costs. I believe ultimately our
customers wil continue to benefit from energy prices that are among the lowest in the nation."
Change Varies Among Customer Groups
Although Idaho Power is seeking an average increase of 9.9 percent to its base rates, the rates and
overall percentage increases differ among customer groups because the costs of serving different
customer groups vary. Costs vary due to differences in the way customer groups receive and use
electricity. Idaho Power's specific rate proposals for customer groups seek to align more closely
customers' rates with the costs of providing them electrical service.
s.
Residential
Small Commercial
Lar e Commercial
Industrial
Irri ation
PCA Component Not Reflected In Request
The proposed rates do not include the Power Cost Adjustment (PCA) that adjusts rates on June 1 every
year. Filed on April 15, the PCA varies annually and is largely driven by snow pack and resulting stream
flow conditions in the Snake River. The amount of water flowing in the river determines the amount of
electricity the company can generate from its system of 17 hydroelectric facilities.
Regulatory Review and Public Comment
This filing is a proposal, subject to IPUC review. Following today's filing, the IPUC will begin a
comprehensive review of the application and will seek public input on the company's request. The
process ensures that customers and regulators have the opportunity to review the company's costs.
Copies of the filing are available at Idaho Power's website (ww.idahopower.com/idahoRateFilings).at
the IPUC website (ww.puc.state.id.us)oratthecommissionoffices472W.WashingtonSt..Boise.
Copies also are available at Idaho Power's corporate headquarters, 1221 W. Idaho St., Boise or at Idaho
Power facilities in Nampa, Payette, McCall, Mountain Home, Gooding, Hailey, Twin Falls, Pocatello,Blackfoot or Salmon. .
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