20090430Customer Notice.pdf

esIDA~POR~
An IDACORP Company
DONOVAN E. WALKER
Corporate Counsel
April 29, 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-09-11
POWER COST ADJUSTMENT ("PCA'JRATES FOR ELECTRIC SERVICE
FROM JUNE 1, 2009, THROUGH MAY 31, 2010
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.
Donovan E. Walker
DEW:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. 10 83702
DONOVAN E. WALKER (ISB No. 5921)
BARTON L. KLINE (ISB No. 1526)
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Tel: [phone]
Fax: [phone]
dwalkercæidahopower.com
bklinecæidahopower.com
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2009 APR 29 PH ll: 56
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 MA TIER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO.IPC-E-09-11
AUTHORITY TO IMPLEMENT POWER )
COST ADJUSTMENT ("PCA") RATES ) CUSTOMER NOTICE
FOR ELECTRIC SERVICE FROM JUNE 1, )
2009, THROUGH MAY 31,2010. )
)
As referenced on page 6 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 April 24,
2009, to May 22, 2009.
DATED at Boise, Idaho, this 29th day of April 2009.ç~
DONOVAN E. WALKER
Attorney for Idaho Power Company
CUSTOMER NOTICE - 1
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 29th 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
Weldon B. Stutzman
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington
P.O. Box 83720
Boise, Idaho 83720-0074
-l Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-l Email Weldon.Stutzmancæpuc.idaho.gov
CUSTOMER NOTICE - 2
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Come From Last Year?
Idaho Power uses a diverse mix of resources to provide
its customers with a reliable, low-cost supply of
electricity. This mix includes hydroelectricity, power
generated by the company's coal or natural gas- fired
plants and from purchases from the wholesale energy
market.
These charts show the source of your electricity in a
normal year and the amount and sources Idaho Power
used to meet electrical demand in 2008.
Normal
Expectation
8.9%0.2%~
2.6%47.9%
40.4%
2008 Actual 13.9%
40.2%
-_Hydro
. Coal
Gas
II Long Term Purchases
ii Market Purchases
Energy is a finite, precious resource, and Idaho Power
encourages its customers to use it wisely. For more
information and to sign up for energy efficiency
programs that can help conserve electricity and
save money, please go to www.idahopower.com/
energyefficiency.
CID# 4708887.8k!04-09 l!2009 Idaho Power
-:~IDA. POe
An IDACORP company
~'IF; 1T~lQ
PCA Fiing Reflects
Energy Costs
On April 15, 2009, Idaho Power submitted its annual
Power Cost Adjustment (PCA) proposal for approval
by the Idaho Public Utiities Commission (IPUC). This
filng reflects a true-up oflastyear's forecasted costs
to actual expenses, as well as anticipated fuel costs for
generating electricity, power purchases and offsets
from the benefit of off-system sales for the coming year.
If approved by the commission, the :rCA wil increase
rates by $93.8 million, or 1l.40% overalL. For the typical
residential customer using 1,050 kilowatt-hours of
electricity each month, the monthly increase will be
approximately $7.20. The actual percentage of change
varies by customer group based upon the rate they pay
for electricity.
The PCA, an annual fiing in place since 1992, is strictly
a cost recovery mechanism that passes on both the
benefits and costs of supplying energy to Idaho Power
customers. It does not contai a profit component.
Factors Contributing To Higher
Power Supply Expenses
A number of factors contribute to this year's PCA and
the resultig increase. One factor is the signifcant
increase in last year's actual energy costs compared to
those forecast. We also forecast higher-than-normal
energy costs for the comig year due to expected
below-normal stream flows impactig hydroelectric
generation. This impact reduces off-system sales
benefits, increases power purchases and results
in higher fuel costs to produce electrcity with our
system's thermal resources.
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Customers benefit from our system's surplus energy
sales to the wholesale market. Off-system sales
revenues are deducted from our power supply costs
and reduce the rates our customers pay. However,
this coming year, our abilty to sell and the revenue
generated are projected to be significantly less than the
normal benefit derived from these off-system sales.
The company actively manages its system operations
to help lower power supply costs without jeopardizing
its system reliabilty service quality or obligation to
serve.
Water ChaiJenges For Hydroelectric
Generation
In years when water is plentiful Idaho Power more
fully utilizes its 17 -dam hydroelectric system, resulting
in lower power production costs and associated
benefits passed on to customers. When hydroelectrc
generating conditions are below average as they have
been for nine of the past 10 years, Idaho Power must
use more expensive resources to meet customers'
need for electricity. The company expects to generate
between 6.5 and 8.5 million megawatt-hours (MWh)
from its hydroelectric generation resources this year
compared to 6.2 and 6.9 milion in 2007 and 2008
respectively. The anticipated range for 2009 is below
the median annual hydrological generation of 8.5
milion MWh.
Although below-normal hydro generation is
anticipated for 2009, recent weather conditions
may provide customer benefits through reduced
power supply expenses. The commission wil ".
review the company's application and determine
whether any additional changes should be
reflected in rates at this time.
--_.,---
OveraJl Results Of 2()09 FHing
If approved, the PCA fiing means a rate increase of
$93.8 milion for the company's Idaho customers, or
1l.40 percent overall. This chart ilustrates the overall
percentage increase for each major customer group as
a result of the proposed PCA. The varying amount of
overall increase reflects the difference that each group
pays for electricity.
Percentage Change from Cúrrent Rates
Residential General
Service
Overall
Change
large
Power Irrigation
9.30%12.05% 16.37% 11.08%11.40%
Idaho Power's proposal is subject to public review
and approval by the IPUC. Copies of the application
are available to the public at the IPUC offices (472
W. Washington, Boise ID), Idaho Power offces or on
Idaho Power's Web site, www.idahopower.com or
the IPUC Web site ww.puc.idaho.gov.
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