20090408Customer Notice.pdf

etlDA~POR~
An IDACORP Company
DONOVAN E. WALKER
Corporate Counsel
April 7, 2009
VIA HAND DELIVERY
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-09-07
INCLUSION OF ADVANCED METERING INFRASTRUCTURE ("AMI'
INVESTMENT IN RATE BASE
Dear Ms. Jewell:
Enclosed for filing please find an original and seven (7) copies of Idaho Power
Company's Customer Notice in the above matter.
Very truly yours,tÀ/c;æL
Donovan E. Walker
DEW:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
DONOVAN E. WALKER (ISB No. 5921)
BARTON L. KLINE (ISB No. 1526)
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388.,5317
Facsimile: [phone]
dwalkerØlidahopower.com
bklineØlidahopower.com
REG j\'"
zun9 APR - 7 PM 5: 04
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
AUTHORITY TO INCREASE ITS RATES
DUE TO THE INCLUSION OF ADVANCED
METERING INFRASTRUCTURE ("AMI"
INVESTMENT IN RATE BASE.
)
) CASE NO. IPC-E-09-07
)
) CUSTOMER NOTICE
)
)
)
As referenced on page 5 of the Application filed in the above-referenced case,
Idaho Power Company hereby submits a copy of the Customer Notice for this matter.
This Notice wil be distributed to the Company's customers as a bil insert from March
25, 2009, to April 23, 2009.
DATED at Boise, Idaho, this ¡th day of April 2009.
&~eL
Attorney for Idaho Power Company
CUSTOMER NOTICE - 1
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 7th day of April 2009 I served a true and correct
copy of the CUSTOMER NOTICE upon the following named parties by the method
indicated below, and addressed to the following:
Commission Staff
Neil Price
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington
P.O. Box 83720
Boise, Idaho 83720-0074
-- Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-- Email Neil.Pricecæpuc. idaho.gov
~¿'tUc(
Donovan E. Walker
CUSTOMER NOTICE - 2
,
IDAr£ POR..
An IOACORP COmpany
Important Information
About Your Electricity Bil
Idaho Power is committed to diligent execution of energy
efficiency initiatives, and in partnership with customers is
demonstrating its commitment to securing our energy future.
Meeting these commitments requires periodic filings with the
Idaho Public Utilties Commission (IPUC) to adjust the prices
customers pay for electricity. Idaho Power filed three energy
efficiency-related requests with the IPUC in March which may
affect your rates. These rate actions complement our expanded
energy efficiency activities and underscore Idaho Power's
commitment to helping our customers increase their energy
effciency, providing more opportunity for them to control their
electric bilL.
Energy Efficiency (EE) Program Funding
Our energy efficiency programs provide cash incentives,
information and services to residential, general service, large
power and irrigation customers. As a result of continued
expansion of these programs Idaho Power is seeking approval
to adjust the amount collected through the existing Energy
Efficiency Services charge from 2.5 percent of monthly energy
bils to 4.75 percent. All of the funds collected by this charge
go directly to energy efficiency programs. None of the funding
goes to the earnings of the company. The filng proposes to
collect an additional $15.6 milion annually or an increase of
1.91 percent over the current annual Idaho revenue.
Energy efficiency programs help customers save energy and
money. They also help Idaho Power reduce the amount of
electricity it buys or generates. This ensures the company
meets its commitment to responsible planning for the growing
need of electricity. To learn more about Idaho Power's energy
efficiency programs or to enroll, visit ww.idahopower.com/
eeprograms.
Fixed Cost Adjustment (FCA)
The FCA is a pilot rate adjustment that trues up fixed cost
recovery as energy effciency programs and other activities strive
to reduce usage per customer. Its purpose is to encourage the
company to invest in energy effciency programs and activities.
The FCA provides for an IPUC -determined amount of fixed costs
to be recovered from these customers. If, because of reduced
electicity 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-collect the authorized amount,
the company refunds the difference through a credit.
During 2008, Idaho Power's energy use per customer decreased,
in part due to increased energy efficiency, and the company
under-collected fixed costs from both residential and small
general service customers. The filing proposes to collect an
additional $5.2 million for one year. Therefore, these two
customer groups are proposed to receive a 0.0529 centslkilowatt-
hour (kWh) charge beginning June 1.
Advanced Metering Infrastructure (AMI)
Responding to a changing technological environment and past
directives from the IPUC, Idaho Power is installng advanced
metering across its service area. Installation of AMI wil reduce
operating costs associated with meter reading and improve
meter reading accuracy, outage monitoring and management,
and electricity theft detection. It will eventually allow customers
to monitor electric prices and become more energy efficient by
adjusting their usage to take advantage of lower price periods.
AMI wil also allow more customers to participate in more
programs, such as our AlC Cool Credit air conditioner cycling
program. If approved, this action will increase residential, small
business and irrigation customers' rates uniformly by an average
of 1.37 percent, and would produce an estimated $11.2 milion in
additional revenue per year.
Overall Impact of These Actions
If approved, these requests collectively wil have differing impacts
on the rates paid by our customers. The table below shows the
average change:
" . , Rèside~t¡àl Generai tàrg~.Polier IrriganònService Servièe' Service "Service
:~.34%. .1.78%"3.3!l%
For a typical residential customer using 1,050 kWh of electricity
each month, the monthly bil would increase by $3.99 per month
during June, July and August and by $3.89 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 Web page at ww.idahopower.com/
idahoratefilings. Copies also are available at Idaho Power offices
or at the Idaho Public Utilities Commission office in Boise.