HomeMy WebLinkAbout20100316News Release-Customer Notice.pdfBEFORE THE
Idaho Pu~lic Utiities Commission
Office of the Secretary
RECEIVED
MAR 15 2010
Boise, Idaho
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-10-07
IDAHO POWER COMPANY
ATTACHMENT NO.3
PRESS RELEASE AND CUSTOMER NOTICE
*SIDA~PO~
An IDACORP Company
NEWS RELEASE
Idaho PU~lic Utilties COmmission
Office of the Secretary
RECEIVED
MAR 15 2010
FOR IMMEDIATE RELEASE Boise, Idaho
Media Contact: Stephanie McCurdy
Corporate Communcation
388-6973 or SMcCurdycgidahopower.com
Idaho Power Submits Three Energy Efficiency-Related Actions To IPUC
Filngs complement expanded energy effciency activities
BOISE, ID, Monday, March 15, 20io-Today Idaho Power fied three energy efficiency-related
actions with the Idaho Public Utilities Commission (IPUC), including the company's Demand-
Side Management 2009 Anual Report. This report highlights the past year's accomplishments and
recognzes the company's energy effciency 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 effciency 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 effcient empowers everyone to control costs and conserve precious
resources. An anouncement detailing impressive specifics of 2009 achievements in energy
effciency will be released later this week.
Also today, Idaho Power fied applications requesting commission approval of two additiona
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 installation of advanced or "smar" meters, which will provide the technical platform for
additional energy effciency and demand response programs in the futue. A separate rate action
addressing pension fuding was filed.
Fixed Cost Adjustment (FCA)
The FCA is a pilot program designed to allow the company to invest in energy efficiency
programs and activities. The program achieves this by reimbursing Idaho 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 (B3707)
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 electricity
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
refuds the difference to customers through a credit.
Durng 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 fiing 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 install advanced metering infrastructue, including smar meters, for
customers across its service area. Ths 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 will eventualy be
able to become more energy aware and save money by adjusting their usage to tae 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 irrigation customers' rates
uniformly by an average of 0.41 percent over base rates, and will produce an estimated $2.4
millon in additional revenue per year.
Pension Funding
Pensions help Idaho Power attact and retain high quaity employees, ensurng 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 uniform 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 Efficiency-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 monthy 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 filings 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 affordable 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
Utilty Regulatory Policies Act of 1978. IDACORP's origins lie with Idaho Power and
operations beginning 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
hydroelectric projects as the core of its generation portfolio, Idaho Power's 490,000 residential,
business and agrcultual customers pay some of the nation's lowest prices for electrcity. To
lear more about Idaho Power or IDACORP, visit ww.idahopower.com or
ww.idacorpinc.com.
###
Idaho Public u '.. .,; ..... ,
Office of t~~jš~ '-"NT1mISsion
R E C E I V ?~tary
MAR 15 2010
IiIDA~PO.Boise, Idaho
An IDACORP 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 (IPUC) 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 efficiency; the company under-
collected fixed costs from both residential and small general service
customers. The fiing proposes to collect $6.3 milion 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 centsl
kilowatt-hour (kWh) from residential customers and 0.1535 centsl
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 wil 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 will 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 wil produce an estimated $2.4 million in additional
revenue per year.
Pension Funding
Pensions help Idaho Power attract 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 will have differing impacts
on the rates paid by our customers. The table below shows the
average percentage change in amounts currently biled:
--- ----- ---------
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.comlidahoratefilings 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.