20080707Customer Notices.pdf

John R. Gale
Vice President
Regulatory Affairs
July 3,2008
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83702-0074
RE: General Rate Case Customer Letters
Case No. IPC-E-08-10
Dear Ms. Jewell:
1SIDA~POR~
An IDACORP Company
Please find enclosed copies of the residential customer and general business
customer letters. These letters are to notify our customers of the General Rate Case
(IPC-E-08-10) filed on Friday June 27, 2008. If there are questions, please call
(388.2887).
JRG:MA
Enclosures
c: Bev Parkèr, IPUC
Marilyn Parker, IPUC
P&RS Files
Legal Files
Cordially,
¡J~
John R. Gale
*F1DA-.PORaÐ
An IDACORP Company
:w-£ -06-(0
Dear Residential Customer:
On June 27, our company filed a request with the Idaho Public Utilties Commission (IPUC) for an average increase
of 9.9 percent in general rates to reflect the company's current costs to serve its Idaho customers. The new rate wil
represent a $67 milion annualincrease. A general rate case typically takes about seven months to process and the
company expects that any rate changes resulting from this request would not take effect until early in 2009.
General rates, also called base rates, pay for all ofthe costs of doing business required to reliably serve our electric
customers, including equipment, labor, and materials used to operate Idaho Power on a day-to-day basis. One
component of general rates is the energy costs the company incurs to serve our customers during a "normal" year.
The normalization process takes into account such things as stream flows, fuel costs, market prices, and generation
plant operations.
Differences between normal energy costs and actual energy costs are forecasted, tracked, and recovered through
another rate mechanism call the Power Cost Adjustment or PCA, which is updated annually each spring. The rate
proposals discussed in this letter are forbase rates only and do not include the current PCA.
Investment Improves Reliability and Supply
Two forces are driving this increase; growth in the number of customers and a growing demand for electricity. 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, we have invested $578.2 milion in the electrical system that serves you. This includes construction of 13
new substations, adding 1,157 pole-miles of distribution line, and 190 pole-miles oftransmission lines.
In those same three years, our need to purchase power from others to serve you grew from $876 milion to more than
$2 bilion. These purchases include renewable resources such as wind and geothermaL. We also invested to increase
our generating capacity to 3,267 megawatts compared to 3,087 megawatts in 2005. A single megawatt can power at
least 650 homes.
What Does This Mean to Idaho Power Customers?
The proposed increase to residential customers averages 6.3 percent. The monthly bil for atypical 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.
The table to the right shows the proposed
changes for all major customer groups:Customer
Group
Average
Rate/kWh
e
8.80 cents
4: cêìîs..
3.81 cents
lCêrits
3.20 cents
Percent
Change
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.
10.6%
15.0%
15.0%
At The Heart of This Needed Increase Is Growth
Idaho Power has traditionally been a low cost provider of electric service, but nowwe face some of the same high cost
options for new resources, as do other electric utilties.
Our long- range planning process forecasts nearly 13,000 new customers annually for the next 20 years. Each of them
means an investment in the infrastructure that provides them power.
However, another kind of growth is affecting our company and the prices you pay--growthin the demand for
electricity. Today, homes in Idaho are a third larger than they were 30 years ago. The average home contains
26 power-consuming appliances or devices that use electricity, often when they appear to be off. Central air
conditioning is a given with new construction, while the number of flat screen televisions is ever growing.
All use more power.
Regulatory Review and Public Comment
This filing is a proposal, subject to a comprehensive IPUC review, which may take up to seven months to complete.
During the review of the application, the IPUC wil 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 (www.idahopower.com), atthe IPUC website (www.puc.
idaho.gov), or at the commission offces 472 W. Washington St., 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.
Efficient Use of Electricity Is Encouraged
You have choices as to how this proposed increase may affect your monthly power bilL. Wise use of energy can
help reduce your costs and ours. Energy, especially electricity, is becoming more and more valuable; it should be
conserved much the way water is conserved here in our state.
From 2004 through 2007, Idaho Power's customers more than quadrupled the annual energy savings realized
through the energy effciency programs offered by the company. In 2007 alone, these effciency efforts saved
91,143,761 kilowatt-hours of electricity, energy we neither generated nor bought. The energy saved would serve an
average 7,233 homes for one year. However, there is stil more energy savings to be achieved. I have enclosed a card
that offers some useful suggestions as to how you can save money and power.
Cordially,
1J!1d-
Ric Gale
Vice President
Regulatory Affairs
1SIDA-.PORaÐ
An IDACORP Company
:Ic -E -- -( ê)
Dear Customer:
On June 27, our company fied a request with the Idaho Public Utilties Commission (IPUC) for an average increase
of 9.9 percent in general rates to reflect the company's current costs to serve its Idaho customers. The new rate wil
represent a $67 milion annual increase. A general rate case typically takes about seven months to process and the
company expects that any rate changes resulting from this request would not take effect until early in 2009.
Investment Improves Reliability and Supply
Two forces are driving this increase; growth in the number of customers and an increasing demand for electricity.
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, we have invested $578.2 milion in the electrical system that serves you. This includes construction of 13
new substations, adding 1,157 miles of distribution line, and 190 miles oftransmission lines. Construction costs have
increased dramatically due to global demand on materials such as aluminum, copper, steel, concrete and fueL.
In those same three years, our need to purchase power from others to serve our customers grew from $876 milion to
more than $2 bilion. These purchases include renewable resources such as wind and geothermaL. We also invested
to increase our generating capacity to 3,267 megawatts compared to 3,087 megawatts in 2005. A single megawatt can
power at least 650 homes.
What Does This Mean to Idaho Power Customers?
The proposed increase for commercial, industrial and irrigation customers varies from 10.6 to 15 percent. The
following table shows the proposed average changes for all major customer groups.
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 actual
costs of providing them electrical
service.
""Customer Average Percent
Group Rate/kWh Change
0.01 ""'11l::O.;nb
Small General Service 8.80 cents 10.6%
Littgêüeñeraisetvtce 4;lStlcehrs 11.:"1l
Industrial Service 3.81 cents 15.0%
Iftigåtion S/ri cents 15.0%
\. Special Contract Customers 3.20 cents 15.0%~
Regulatory Review and Public Comment
This filing is a proposal, subject to a comprehensive IPUCreview, which may take up to seven months to complete.
During the review of the application, the IPUC wil 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 (www.idahopower.com), atthe IPUC website (www.puc.
idaho.gov), or at the commission offces 472 W. Washington St., Boise. Copies also are available at Idaho Power's
corporate headquarters, 1221 W. Idaho St., Boise or at Idaho Power facilties in Nampa, Payette, McCall, Mountain
Home, Gooding, Hailey, Twin Falls, Pocatello, Blackfoot or Salmon.
Energy Efficiency Can Help Reduce Electricity Bils
Commercial, industrial and irrigation customers can save money and energy by participating in one of our energy
effciency programs. These programs include:
. Customer Effciency
Provides financial incentives for large commercial and industrial energy users improving effciency of electrical
systems or processes.
. Easy Upgrades
Offers incentives for commercial and business customers retrofitting their buildings and facilties with energy
effciency measures.
. BuildingEffciency
Makes incentives available for new construction or remodels encouraging energy effcient building and design.
This offsets part of additional capital expense for more effcient lighting designs, cooling systems, controls and
building shellin new construction processes.
. Irrigation Peak Rewards
Reduces overall amount of energy required on Idaho Power's system by changing energy use patterns of irrigators.
. Irrigation Effciency
Offers a menu of options for irrigation customers seeking a reduction in their energy use by increasing effciency.
To learn more about these programs and how you can participate, visit www.idahopower.com. These programs are
designed to help you save money and electricity.
Cordially,
1J!1d-
Ric Gale
Vice President
Regulatory Affairs