20130315News Release and Customer Notice.pdf

IDAHO
r An IDACORP Company
"Oil MAR 15 PP112:33
NEWS RELEASE' IT
Annual Fixed Cost Adjustment is a Small Decrease for Idaho Power Customers
BOISE, Idaho, March 15, 2013 -- Idaho Power today filed its annual Fixed Cost Adjustment (FCA)
with the Idaho Public Utilities Commission (IPUC). If the FCA proposal is approved as filed, the
monthly bill impact for an average Idaho Power residential customer in Idaho using 1,050
kilowatt-hours of energy a month will be a decrease of $0.27 per month beginning June 1.
A summary of the proposed change to Idaho rates is shown below.
Revenue Impact By Class: Percentage Change from Current Billed Rates
Small
General
Residential Service
Fixed Cost
Adjustment (FCA) -0.30% -0.31%
Large
General Large Overall
Service Power Irrigation Change
N/A N/A N/A -0.30%
"The FCA helps the company pursue demand-side management programs and energy efficiency
education," stated Greg Said, Idaho Power Vice President of Regulatory Affairs. "The
mechanism allows for a robust energy efficiency portfolio, which is a key component in our
ability to provide responsible, fair-priced electric service to our customers."
The FCA is a true-up mechanism that "decouples," or separates, energy sales from revenue, and
is intended to provide for the recovery of the Commission-authorized level of fixed costs. This
removes financial disincentives for the company to promote and invest in energy efficiency
activities, which over the long run helps keep costs down for our customers.
The FCA annually adjusts electric rates for Idaho Residential and Small General Service
customers based on changes in energy use during the previous year. If, because of reduced
energy use per customer during the prior year, Idaho Power under-collects the authorized level
of fixed costs, we recover the difference through a surcharge. If we collect more than the
authorized level of fixed costs, we refund the difference to customers through a credit.
In the past six years, both scenarios have occurred. In 2012, Idaho Power under-collected its
authorized level of fixed costs.
more-more-more P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
Annual Fixed Cost Adjustment is a Small Decrease for Idaho Power Customers
Page 2 of 2
For 2012 the FCA requests a surcharge of $8.9 million, which is less than the 2011 FCA surcharge.
This year's FCA filing proposes to collect $1.3 million or 0.30 percent less than current rates for
one year, resulting in a small decrease for Residential and Small General Service customers.
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,
Boise, Idaho, 83702), 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 on the
filing at www.idahopower.com/rates.
About Idaho Power Company:
Idaho Power began operations in 1916. Today, the electric utility employs approximately 2,000
people who serve more than 500,000 customers throughout a 24,000-square-mile area in
southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its
generation portfolio, Idaho Power's residential, business and agricultural customers pay among
the nation's lowest rates for electricity. IDACORP, Inc. (NYSE: IDA) is the investor-owned utility's
parent company based in Boise, Idaho. To learn more, visit www.idahoiower.com or
www.idacorpinc.com .
Contact: Stephanie McCurdy
Communication Specialist
Idaho Power
208-388-6973 and [e-mail]
1-800-458-1443 media line
AR 15 PMI2:38
t ' ILITIS OMMSSC:
On March 15, Idaho Power filed its
annual Fixed Cost Adjustment (FCA) with
the Idaho Public Utilities Commission (IPUC).
The proposed change, a small rate decrease in the current
FCA rate, would be effective June 1 if approved.
The FCA is a true-up mechanism that "decouples," or
separates, energy sales from revenue, and is intended to
provide for the recovery of the Commission-authorized level
of fixed costs. This removes financial disincentives for the
company to promote and invest in energy efficiency activities,
which over the long run helps keep costs down for our
customers.
The FCA annually adjusts electric rates for Idaho Residential
and Small General Service customers based on changes in
energy use during the previous year. If, because of reduced
energy use per customer during the prior year,Idaho Power
under-collects the authorized level of fixed costs, we recover
the difference through a surcharge. If we collect more than
the authorized level of fixed costs, we refund the difference to
customers through a credit. In the past six years, both scenarios
have occurred. In 2012, Idaho Power under-collected its
authorized level of fixed costs.
If approved, for 2012 the FCA will be a surcharge of $8.9
million, which is less than the 2011 FCA surcharge. This year's
FCA filing proposes to collect $1.3 million or 0.30 percent less
than current rates for one year, resulting in a small decrease
in the FCA rate for Residential and Small General Service
customers.
IHO
NER
An IDACORP Company
Overall Impact
A summary of the proposed change to Idaho rates
is shown below.
If the FCA proposal is approved as filed, the monthly bill
impact for an average Idaho Power residential customer in
Idaho using 1,050 kilowatt-hours of energy a month will be a
bill decrease of $0.27 per month beginning June 1.
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, Idaho, 83702), Idaho Power offices or
on Idaho Power's website, www.idahopower.com or the
IPUC website, www.pucidaho.gov . You can view additional,
related materials, including a news release on the filing at
www.idahopower.com/rates.
We value your business and appreciate you
taking the time to read this notice. Thank you.
IHO PIVER ® Printed on recycled paper.
An IDACORP Company 02013 Idaho Power