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HomeMy WebLinkAbout20100316News Release-Customer Notice.pdfIdaho Public Utilties Commission Office of the SecretaryRECEIVED BEFORE THE MAR 15 2010 Boise, Idaho IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-10-06 IDAHO POWER COMPANY ATTACHMENT NO.4 PRESS RELEASE AND CUSTOMER NOTICE 1SIDA~PO~ An IDACORP Company NEWS RELEASE Idaho Pu~ljc Utllth~k. Ctommission Office of the Secretary RECEIVED MAR 15 2010 FOR IMMEDIATE RELEASE Boise, Idaho Media Contact: Stephane McCurdy Corporate Communication 388-6973 or SMcCurdy~idahopower.com Idaho Power Submits Three Energy Efficiency-Related Actions To IPUC Filngs complement expanded energy effciency activities BOISE, ID, Monday, March 15,2010- Today Idaho Power filed three energy effciency-related actions with the Idaho Public Utilties Commission (IPUC), including the company's Demand- Side Management 2009 Anual Report. This report higWights the past year's accomplishments and recognzes the company's energy efficiency achievements and those of its customers. As in the past, Idaho Power is stepping forward on all fronts, continuing its commitment to dilgent execution of energy efficiency initiatives and demonstrating its commitment to securng our energy future. The Demand-Side Management 2009 Anual Report shows significant achievements accomplished by Idaho Power in parership with its customers. It ilustrates the value of paricipation in energy effciency programs, as well as successes in the service area that demonstrate how being energy efficient empowers everyone to control costs and conserve precious resources. An anouncement detailng impressive specifics of 2009 achievements in energy effciency wil be released later ths week. Also today, Idaho Power filed applications requesting commission approval of two additional energy effciency-related initiatives. One seeks an adjustment to curent rates under the pilot Fixed Cost Adjustment (FCA) or decoupling mechanism. The second seeks rate recovery for the continued instalation of advanced or "smar" meters, which wil provide the techncal platform for additional energy effciency and demand response programs in the future. A separate rate action addressing pension fuding was fied. Fixed Cost Adjustment (FCA) The FCA is a pilot program designed to allow the company to invest in energy effciency programs and activities. The program achieves this by reimbursing Idao Power when it doesn't recover its commission-authorized fixed costs of providing electricity due to reduced energy consumption encouraged through energy effciency. Idaho Power has applied with IPUC to make the FCA permanent. more-more-more P.O. Box 70 (83707) 1221 W.ldaho St. Boise. 10 83702 Idaho Power Submits Three Energy Efficiency-Related Actions To IPUC Page 2 of3 The FCA anually adjusts customer electric rates up or down. If, because of reduced electrcity use during the year, Idaho Power under-collects the authorized fixed cost amount, it can collect the difference though a surcharge. If the company over-collects the authorized amount, it refuds the difference to customers though a credit. During 2009, Idaho Power's energy use per customer decreased, in par due to increased energy effciency; the company under-collected fixed costs from both residential and small general service customers. The filing proposes to collect $6.3 milion for one year, or an additional $3.6 milion over curently biled amounts. If the company's request is approved, beginning June 1 the residential class would receive an FCA charge of 0.1218 cents per kilowatt-hour (kWh) and the small general service class would receive an FCA charge of 0.1535 cents per kWh above base rates. Advanced Metering Infrastructure (AMI) Responding to a changing technological environment and past directives from the IPUC, Idaho Power continues to instal advanced metering infrastructue, including smar meters, for customers across its service area. This technology will provide enhanced customer and environmental benefits, reduce operating costs associated with meter reading and improve meter reading accuracy, outage monitoring and restoration. Customers with smar meters curently have detailed access to their usage, and wil eventully be able to become more energy aware and save money by adjusting their usage to take advantage of lower price periods if time-of-use rates are implemented for all customers. Smar meters also will allow more customers to paricipate in more demand-side management programs, such as our, A/C Cool Credit air conditioner cycling program. if approved, this action wil increase residential, small business and irrgation customers' rates uniformly by an average of 0.41 percent over base rates, and will produce an estimated $2.4 milion in additional revenue per year. Pension Funding Pensions help Idaho Power attact and retain high quality employees, ensuring our abilty to provide customers reliable, responsible, fair-priced electric service on-demand. The IPUC has authorized Idaho Power to account for its defined benefit pension expense on a cash basis, and to defer and account for accrued pension expense on a cash basis. The commission also has acknowledged that it is appropriate for us to request rate recovery for reasonably and prudently incured cash contributions for pension expenses. This increase would be recovered through a unform increase to base rates of 0.77 percent or $5.4 milion. more-more-more P.O. Box 70 (83707) 1221 W.ldaho St. Boise. 10 83702 Idaho Power Submits Three Energy Effciency-Related Actions To IPUC Page 3 of3 Overall Impact of These Actions If approved, these requests collectively will have differing impacts on the rates paid by our customers. The table below shows the average percentage change in amounts curently biled: Residential Small Large Large Irrigation OverallGeneralGeneralPowerServiceServiceServiceServiceServiceChange FCA 0.82%0.99%0.00%0.00%0.00%0.39% AMI 0.34%0.35%0.28%0.00%0.33%0.27% Pension 0.63%0.66%0.60%0.55%0.61%0.61%Funding Overall 1.79%2.00%0.88%0.55%0.94%1.26%Change For a typical residential customer using 1,050 kWh of energy each month, the monthly bil would increase by $1.59 per month durng June, July and August and by $1.53 during non-sumer months. Idaho Power's applications are fiings open to public review and comment and subject to IPUC approval. They are available on the company's Web page at ww.idahopower.com/idahoratefiings or at the commission's Web page at ww.puc.state.id.us. Copies also are available at Idaho Power offces or at the IPUC office in Boise. IDACORP, Inc. (NYSE: IDA), Boise, Idaho-based and formed in 1998, is a holding company comprised ofIdaho Power Company, a regulated electric utilty; IDACORP Financial, a holder of afordable housing projects and other real estate investments; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. IDACORP's origins lie with Idaho Power and operations beginnng in 1916. Today, Idaho Power employs approximately 1,994 people to serve a 24,000 squae-mile service area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectrc projects as the core of its generation portfolio, Idaho Power's 490,000 residential, business and agricultual customers pay some of the nation's lowest prices for electricity. To lear more about Idaho Power or IDACORP, visit ww.idahopower.comor ww.idacorpinc.com. ### Idaho PUblic Utiities Commi' . Office f th ss/ono e SecretaryRECEIVED MAR 15 2010 a IDA.,PC.Boise, Idaho An IOACORP Company Idaho Power is committed to providing energy efficiency initiatives and programs for our customers. This partnership with customers demonstrates our commitment to securing our energy future in the communities we serve. Meeting these commitments requires periodic filings with the Idaho Public Utilities Commission (lPUC) and sometimes involves changing the rates we all pay for electric service. Idaho Power filed three requests with the IPUC on March 15 which may affect your rates. Two of these rate actions expand our energy efficiency activities and underscore our commitment to helping our customers increase their energy efficiency, providing more opportunity for them to control their electric energy usage and costs. Fixed Cost Adjustment (FCA) The FCA is a pilot program designed to allow Idaho Power to invest in energy efficiency programs and activities without experiencing negative financial impacts. The program achieves this by reimbursing the company when it doesn't recover its commission-authorized fixed costs of providing energy due to reduced energy consumption encouraged through energy efficiency. Idaho Power has applied with the IPUC to make the FCA permanent. The FCA annually adjusts residential and small general service customer electric rates up or down. If. because of reduced energy use during the year, Idaho Power under-collects the authorized fixed cost amount, it can collect the difference through a surcharge. If the company over-collects the authorized amount, it refunds the difference to customers through a credit. During 2009, Idaho Power's energy use per customer decreased, in part due to increased energy effciency; the company under- collected fixed costs from both residential and small general service customers. The filing proposes to collect $6.3 millon for one year, or an additional $3.6 milion over currently biled amounts. Beginning June 1, the company proposes to receive an additional 0.1218 cents! kilowatt-hour (kWh) from residential customers and 0.1535 cents! kWh from the small general service class. Advanced Metering Infrastructure (AMI) Responding to a changing technological environment and past directives from the IPUC, Idaho Power continues to install advanced metering infrastructure (AMI), including smart meters, for customers across its service area. This technology will provide enhanced customer and environmental benefits, reduce operating costs associated with meter reading and improve meter reading accuracy, outage monitoring and restoration. Customers with smart meters currently have detailed access to their usage, and wil eventually be able to become more energy efficient and save money by adjusting their usage to take advantage of lower price periods. Smart meters also wil allow more customers to participate in more energy efficiency and peak demand reduction programs. If approved, this action wil increase residential, small business and irrigation customers' rates uniformly by 0.41 percent over base rates, and will produce an estimated $2.4 milion in additional revenue per year. Pension Funding Pensions help Idaho Power attact and retain high quality employees, ensuring our ability to provide customers reliable, responsible, fair-priced electric service on-demand. The IPUC has acknowledged that it is appropriate for Idaho Power to request rate recovery for reasonably and prudently incurred cash contributions for pension expenses. This would be recovered through a uniform base rate increase of 0.77 percent or $5.4 million. 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 percentage change in amounts currently billed: --- ----- .. --------- For a typical residential customer using 1,050 kWh of energy each month, the monthly bil would increase by $1.59 per month during June, July and August and by $1.53 during non-summer months. Idaho Power's applications are filings open to public review and comment and subject to IPUC approval. They are available on the company's Web page at www.idahopower.com/idahoratefilings or at the commission's Web page at www.puc.state.id.us. Copies also are available at Idaho Power offices or at the IPUC office in Boise.