20110601Press Release, Customer Notice.pdf

BEFORE THE RECEIIIr.olO/1 JUN.. ..A.
/ I P113:IDAHO PUBLIC UTiliTIES COMMISSll4;o ~~.,.....""'
CASE NO. IPC-E-11-08
IDAHO POWER COMPANY
ATTACHMENT NO.4
PRESS RELEASE AND CUSTOMER NOTICE
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AnlDACORP
NEWS RELEASE
Idaho Power Files General Rate Case with Idaho Public Utilties Commission
Though the proposal requests an increase, Idaho Power customers have received rate
decreases this year and in the previous two years. Additionally, Idaho Power still
provides some of the lowest electricity rates in the country.
BOISE, Idaho, June 1, 2011 - Today, Idaho Power Company (Idaho Power),
IDACORP, Inc.'s principal subsidiary, requested from the Idaho Public Utilities
Commission (IPUC) an increase in base rates of approximately $83 milion, a 9.9
percent overall average rate increase. Idaho Power anticipates the IPUC wil evaluate
the request and that any resulting rate change wil not become effective until Jan. 1,
2012.
"Idaho Power is sensitive to the challenges faced by our customers in these diffcult
economic times and does not take lightly any request to increase rates," stated Vice
President of Regulatory Affairs Greg Said. "However, it is important for us to achieve fair
and timely recovery of our costs to provide customers with safe and reliable electric
service, which today's rates do not fully provide."
The proposed increase to residential customers averages 8.83 percent. The monthly bil
for a typical residential customer using 1,050 kilowatt-hours (kWh) per month would
increase from $75.42 to $82.59 during non-summer months and from $82.45 to $90.59
per month during June, July and August. The table below shows the proposed changes
for the major customer groups and the overall average change:
Customer Group Percent Change
Residential 8.83%
Small General Service 14.85%
Lan::e General Service 7.28%
Industrial Service 14.84%
IrriQation 14.85%
Overall Average Change 9.90%
"Decisions about energy are some of the most important choices facing our nation and
our company today," continued Said. "Continued growth in demand for electricity,
investments in aging infrastructure, and expenses related to additional compliance and
reliability requirements are driving the need to invest large amounts of money to expand
and improve electricity supply and delivery for our customers.
more-more-more P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
Idaho Power Files General Rate Case with Idaho Public Utilties Commission
Page 2 of 3
"Since Idaho Power's last general rate case in 2008, we have invested over $450 millon
in infrastructure necessary to continue providing safe and reliable electric service to our
customers. Idaho Power is continually looking for ways to provide quality services to our
customers' effciently and at a low cost."
As part of a January 2010 settlement agreement with the IPUC, our customer groups
and other interested parties, Idaho Power agreed not to file for comprehensive review of
its base rates until now. While this agreement allowed for rate adjustments related to
the recovery of a number of specified costs, customers have actually seen their rates go
down in each of the last two years. In 2011, Idaho Power's Power Cost Adjustment
(PCA) resulted in a $40 milion decrease that more than offset other allowed rate
increases that became effective June 1,2011.
Idaho Power customers continue to pay some of the lowest rates in the country for
electric service. The latest Edison Electric Institute (EEl) Rate Comparison ranks Idaho
Power the 13th lowest out of 179 utilities for residential rates in the United States, based
on Jan. 1 data. Idaho Power believes its low rates are reflective of its historically low
embedded costs, including its hydroelectric plants and its abilty to effectively manage
expenses. Looking forward, Idaho Power faces increasing costs to serve new loads
similar to that of peer utilities.
Idaho Power's filing is a proposal that is subject to public review and approval by the
IPUC. Copies of the application are available to the public at the IPUC offces (472 W.
Washington St., Boise, ID), Idaho Power offces (1221 W. Idaho St., Boise, ID), and on
Idaho Power's website, ww.idahopower.com. and the IPUC's website,
ww.puc.idaho.gov. You can view additional, related materials, including frequently
asked questions about the filing, at ww.idahopower.com/rates.
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 Utility 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 portfolio, Idaho Power's approximately 492,000 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.
more-more-more
P.O. Box 70 (83707)
1221 W.ldaho St.
Boise, ID 83702
Idaho Power Files General Rate Case with Idaho Public Utilties Commission
Page 3 of 3
Forward-Looking Statements:
This release contains "forward-looking statements" intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are all statements other than statements of historical fact,
including, without limitation, those that are identified by the use of the word "expects,"
"anticipates," "estimates," "believes," or similar expressions. Idaho Power Company's
expectation as to the outcome, results, or impact of regulatory proceedings is an
example of a forward-looking statement. Forward-looking statements are not
guarantees of future performance and involve estimates, assumptions, risks, and
uncertainties. Actual results, performance, or outcomes may differ materially from the
results discussed in the statements, including as a result of the outcome of regulatory
proceedings. Therefore, you should not place undue reliance on such statements.
Forward-looking statements should be read with the cautionary statements included in
IDACORP, Inc.'s and Idaho Power Company's Form 10-K for the year ended December
31, 2010, including in Part I, Item 1A - "Risk Factors" in that report, and in other reports
filed by IDACORP, Inc. and Idaho Power Company with the Securities and Exchange
Commission. Any forward-looking statement speaks only as of the date on which such
statement is made. IDACORP, Inc. and Idaho Power Company disclaim any obligation
to update publicly any forward-looking information, whether in response to new
information, future events, or otherwise, except as required by applicable law.
Contact: Stephanie McCurdy, communication specialist
Idaho Power
[phone] or smccurdy(âidahopower.com
###
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
~IDA~PO~
An IDACORP company
Important
Information
About Idaho Power Rates
Idaho Power is sensitive to the challenges faced by our
customers in these difficult economic times and does not
take lightly any request to increase rates. However, it is
important for us to achieve fair and timely recovery of
our costs to provide you safe and reliable electric service,
which today's rates do not fully provide.
On June 1, Idaho Power requested from the Idaho Public
Utilties Commission (IPUC) an increase in base rates
of approximately $83 millon, a 9.9 percent increase.
We anticipate the IPUC wil evaluate our request and
that any resulting rate change will not become effective
until Jan. 1,2012.
What Does This Mean
To Idaho Power Customers?
The proposed increase to residential customers averages
8.83 percent. The monthly bil for a typical residential
customer using 1,050 kilowatt-hours (kWh) per month
would increase from $75.42 to $82.59 during non-summer
months and from $82.45 to $90.59 per month during
June, July and August. The table below shows the proposed
changes for all major customer groups:
Customer Group Percent Change
Why Is Idaho Power Filing
A General Rate Case?
Decisions about energy are some of the most important
choices facing our nation and our company today.
Continued growth in demand for electricity, investments
in aging infrastructure, and expenses related to additional
compliance and reliability requireme.nts are driving the need
to invest large amounts of money to expand and improve
electricity supply and delivery for our customers.
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Since our last general rate case in 2008, we have invested
over $450 millon in infrastructure necessary to continue
providing safe and reliable electric service to our customers.
Other Rate Impacts
Idaho Power is continually looking for ways to provide
quality services to our customers efficiently and at a
low cost.
As part of a January 2010 settlement agreement with the
IPUC, our customer groups and other interested parties,
Idaho Power agreed not to file for comprehensive review
of its base rates until now. While this agreement allowed
for rate adjustments related to the recovery of a number of
specified costs, customers have actually seen their rates go
down in each of the last two years. In 2011, our Power Cost
Adjustment (PCA) resulted in a $40 millon decrease which
more than offset other allowed rate increases.
How Idaho Power Rates
Compare To Other Utilities
Idaho Power customers continue to pay some of the lowest
rates in the country for electric service. The latest Edison
Electric Institute (EEl) Rate Comparison that ranks utility
rates from highest to lowest placed Idaho Power number
167 out of 179 utilities for residential rates in the United
States, based on Jan. 1 data. It should be noted that our low
rates are reflective of our historically low embedded costs,
including our hydroelectric plants and our abilty to manage
expense. Looking forward, Idaho Power faces increasing
costs to serve new loads similar to that of peer utilties.
Opportunities for Public Review
Idaho Power's filing is a proposal that 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 St., Boise, ID), Idaho Power offices (1221 W.
Idaho St., Boise, ID) or on Idaho Power's website, www.
idahopower.com or the IPUC website, www.puc.idaho.
gov. You can view additionaL, related materials, including
frequently asked questions and a news release on the filing
at ww.idahopower.com/rates.
Thank you for taking the time to read this notice.
We appreciate your business.
* Prínted on recycled paper.
¡¡ 2011 Idaho Power, 400K / 05.11 *SIDA~POR~
An IDACORP Company