20120504Customer Relations.pdf

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JULIA A. HILTON
Corporate Counsel
jhiltontidahopower.com
May 4, 2012
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-12-17
2012-2013 PCA Rates - Customer Communications Related to Filing
Dear Ms. Jewell:
Idaho Power Company ("Idaho Power" or "Company") filed its Power Cost
Adjustment Application in the above-captioned docket with the Idaho Public Utilities
Commission ("Commission") on April 13, 2012. Accompanying the filing were four (4)
copies of Idaho Power's customer notice, made in compliance with RP 125.
In response to concerns regarding timing of the customer notices and the short time
frame between which some customers may receive the notice and when they could provide
comments to the Commission, Idaho Power is issuing a supplemental customer notice to
110,078 customers who will receive the original notice between May 18 and 24,2012. This
supplemental customer notice, made in the form of a postcard, will ensure that all
customers will receive notice of the proposed rate increase by May 17, 2012, and will
facilitate the opportunity for customers to submit comments in this case prior to a
Commission decision. All customers will still receive the bill insert that was submitted with
the Company's Application. In addition, some customers will also receive the enclosed
supplemental customer notice. Idaho Power hereby submits a copy of its supplemental
customer notice for the Commission's file.
Should you have any questions, please do not hesitate to contact me.
Very truly yours,
Julia A. Hiton
JAH:csb
Enclosure
cc: Service List 1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
~*MDAHO POWER.
An IDACORP Company
BULK RATE
POSTAGE
PAID
PERMIT NO.
679
Ida h o!Powe r Files
•ATATL1 &fIT I .
On April 13, Idaho Power submitted its
annual Power Cost Adjustment (PCA)
proposal for approval by the Idaho Public
Utilities Commission (IPUC). The PCA, an
annual filing in place since 1992, is a cost
recovery mechanism that passes on both
the benefits and costs of supplying energy
to Idaho Power customers.
You will also receive a notice about this
filing in this month's bill. Because you
will receive that communication near the
end of the IPUC comment period, and
because Idaho Power wants to make sure
all customers have the opportunity to
comment on the filing if they wish, we are
also sending you this supplemental mailing.
The federal Public Utility Regulatory
Policies Act (PURPA) requires Idaho
Power to purchase power from certain
renewable-energy projects. This year's
PCA increase is driven primarily by
contracted purchases of power from
PURPA projects. Such purchases have
grown by nearly 25 percent in the last
year and that increase is reflected in
this year's request.
If our filing is approved by the Commission
as filed, Idaho customer rates will be
increased by $43 million of incremental
power supply expenses, or an overall
percentage increase of 510 in current
billed rates beginning June 1.
The chart below illustrates the overall percentage change
for each major customer group as a result of the PCA
filing. The varying percentages of overall increase for each
customer class reflect the difference in the price each group
pays for electricity.
2012,PCA REVENUE I MI lICLA SS
Percentage Change from Current Billed Rates
Residential
Small
General
Large
General 1IrrigationPower Service I Service
339%
-
2.73%
4 1 5.82%
{
8.55% 5.10%
I
5.10%
The typical Idaho residential customer using 1,050
kilowatt-hours (kWh) of energy per month will see an
increase of approximately $2.82 on their monthly summer
bill and $2.88 a month for non-summer months. The
actual percentage of change will vary by customer group
based upon the rate they pay.
Prrtd on fecycfed
02012 Idaho Power
Why Idaho Power Files a PCA
The PCA is an annual filing that 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. We sell surplus energy during times of high
production and low customer energy needs. The PCA mechanism
allows customers to benefit from our system's surplus energy sales
to the wholesale market. These "off-system" sales revenues are
deducted from our power supply costs and reduce the rates our
customers pay. The PCA also brings last year's forecasted costs in
balance with actual expenses.
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, Boise ID), Idaho Power
offices 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 www.idahopower.com/rates.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 4th day of May 2012 I served a true and correct
copy of the within and foregoing LETTER TO JEAN JEWELL DATED MAY 4, 2012, upon
the following named parties by the method indicated below, and addressed to the following:
Commission Staff
Donald L. Howell, II
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
Industrial Customers of Idaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON & O'LEARY, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, Idaho 83707
X Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email don. howell(äpuc.idaho.qov
Hand Delivered
X U.S. Mail
Overnight Mail
FAX
X Email peterrichardsonandoleary.com
cireqrichardsonandoleary.com
Dr. Don Reading Hand Delivered
Ben Johnson Associates, Inc. X U.S. Mail
6070 Hill Road Overnight Mail
Boise, Idaho 83703 FAX
X Email dread inqcmindsprinq.com
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