20100416News Release.pdf

NIDA
NEWS RELEASE
Idaho Power Proposes $58 Milion Rate Reduction for Customers
Annual Power Cost Adjustment provides for rate decrease due to a number of factors,
including historic, collaborative settlement agreement.
BOISE, 10, April 15, 2010- On April 15, IDACORP, Inc. (NYSE: IDA) primary
subsidiary Idaho Power filed its annual Power Cost Adjustment (PCA) proposal with the
Idaho Public Utilties Commission (IPUC). If approved by the commission, this year's
PCA will reduce customer rates by $58 millon, or 6.5 percent overall beginning June 1.
The actual percentage of change wil vary by customer group based upon the rate they
pay.
REVENUE IMPACT BY CLASS
Percentage Change from Current Rates
Residential Small Large Large Irrigation Overall
General General Power Change
Service Service
-3.22 -0.49 -7.89 -14.00 -6.17 -6.47
The typical residential customer using 1,050 kilowatt-hours (kWh) of energy per
month wil see a clcrease ot.approximately $2.45 on their monthly summer bil and, '!."
$3.25 a month for non-sum~r months.
"To be able to reduce rates for our customers in this way is very positive, especially
this year, in these difficult economic times," said General Manager of Regulatory Affairs
Greg Said. "This decrease to customer rates while leaving base rates unchanged until
2012 demonstrates our ongoing commitment to the prosperity and health of the
communities and people we serve.
"The collaborative settlement Idaho Power reached earlier this year with the IPUC
staff and nearly all of the parties who intervene in our Idaho general rate cases was a
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1221 W.ldaho St.
Boise, 10 83702
Idaho Power Proposes $58 Milion Rate Reduction for Customers
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major component in this year's PCA," Said pointed out. "This filing is a testament to the
power of working together to achieve a win-win result. It allows for a rate reduction for
our customers, and also ensures Idaho Power will receive appropriate rate recovery so
the company can continue to provide reliable, responsible electric services to our
customers who count on us."
"All of our customers wil see lower bils. Our larger load customers have
experienced the highest percentage of PCA impacts historically, and therefore wil
receive a larger share of the decrease."
Idaho Power's PCA has been in place since 1992. It is strictly a cost recovery
mechanism that passes on both the benefits and costs of supplying energy to Idaho
Power customers. It reflects Idaho Power's anticipated fuel costs for generating
electricity, costs of power purchases to meet customer demand and benefits resulting
from sales of surplus energy for the coming year.
The PCA also brings last year's forecasted costs in balance with actual expenses
(also known as the "true-up"). Although forecasted power supply costs are projected to
be higher this year, last year's forecast was far more accurate than in recent years due
to new forecasting methodology. As a result, the true-up portion of the PCA provides for
the significant decrease in customer rates.
This year's combined impact of changes in rates from forecast to forecast and true-
up to true-up resulted in an initial $87 millon total rate reduction. Based upon the
predetermined and stipulated revenue sharing allocation of this amount, customers wil
receive $58 millon of that benefit. Per the settlement agreement, the remaining $29
millon wil offset the first year of a permanent rate increase with $25 millon allocated to
address general increases in the company's cost of service and $4 millon allocated to
cover an allowed increase to base power supply expenses.
In years when water is plentiful Idaho Power is able to more fully utilize its 17 -dam
hydroelectric system, resulting in lower power production costs and associated benefits
passed on to customers. When hydroelectric generating conditions are below average
as they have been for 10 of the past 11 years, Idaho Power must use more expensive
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1221 W.ldaho St.
Boise, 10 83702
Idaho Power Proposes $58 Milion Rate Reduction for Customers
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resources to meet customers' need for electricity.
As of Feb. 23, the company expected to generate between 6.5 and 8.5 millon
megawatt-hours (MWh) from its hydroelectric generation resources in 2010 compared
to 6.9 and 8.1 millon in 2008 and 2009 respectively. The anticipated range for 2010 is
below the median annual hydrological generation of 8.6 milion MWh, and wil be
updated on May 6 when the company files its quarterly SEC Form 10-Q.
In addition to stream flows, market prices for electricity and natural gas also affect
our cost to supply customers' electricity. To the extent that the current economic
conditions are impacting market prices for electricity and natural gas, it is reflected in
the PCA.
Idaho Power's filing is available for public review and subject to approval by the
IPUC. Copies of the application are available at the IPUC offices (472 W. Washington,
Boise 10), Idaho Power offces or on Idaho Power's Web site, ww.idahopower.com or
the IPUC Web site, ww.puc.idaho.gov.
About IDACORP, Inc.:
IDACORP, Inc. (NYSE: IDA), Boise, Idaho-based and formed in 1998, is a holding
company comprised of Idaho Power Company, a regulated electric utility; 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 2,000 people to serve a 24,000 square-mile service area in southern
Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its
generation portolio, 'Idaho Power's 490,000 residential, business and agricultural
customers pay some of the nation's lowest prices for electricity. To learn more about
Idaho Power or IDACORP, visit ww.idahopower.com or ww.idacorpinc.com.
Media Contact: Stephanie McCurdy, Communication Specialist
Idaho Power
[phone] or smccurdy~idahopower.com
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1221 W.ldaho St.
Boise, 1083702
Idaho Power Proposes $58 Milion Rate Reduction for Customers
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Analyst Contact: Lawrence F. Spencer, Director of Investor Relations
IDACORP, Inc.
[phone] or Ispencer~idacorpinc.com
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P.O. Box 70 (83707)
1221 W.ldaho St.
Boise, 10 83702