20140314News Release and Customer Notice.pdf

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An IDACORP CompanY
NEWS RELEASE
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ldaho Power Files Annual Fixed Cost Adjustment i
This onnuolfiting adjusts electric rates for ldoho Residential ond SmotlGenerol Service rr{io^"r,
based on chonges in energy use during the previous yeor. lf, becouse of reduced energy dsl per
customer during the prior yeor, ldoho Power collects less thon the outhorized level of fixed costs,
we recover the difference through a surcharge. lf we collect more thon the authorized level of
fixed costs, we refund the difference to customers through o credit. ln 2073, ldoho Power did not
collect the outhorized level of fixed costs, so this yeor o surcharge is proposed.
BOISE, ldaho, March L4,2OL4 -- ldaho Power today filed its annual Fixed Cost Adjustment (FCA)
with the ldaho Public Utilities Commission (IPUC). This year's FCA filing represents an increase
of 56.0 million for Residential and Small General Service customers. lf the proposal is approved
as filed, the price change for an average Idaho Power residential customer in tdaho using 1,050
kilowatt-hours of energy a month would be an increase of about S1.20 per month beginning
June 1.
A summary of the proposed change to ldaho rates is shown below.
Revenue lmpact By Class: Percentage Change from Current Billed Rates
Fixed Cost
Adjustment (FCAI
Small
General
Residential Service
L.L7o/o L.20%
Large
General
Service
O.OOo/o
Large
Power
O.OO%o
Overall
lrrigation Change*
O.OO% L.L$o/o
*The overall percentage change for the affected classes.
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 financia! disincentives for the company to promote and invest in energy efficiency
activities. Fixed costs include long-lived infrastructure-things such as generation plants, power
lines, substations and other equipment-as well as certain administrative costs.
P.O. Box 70 (83707)
1221 W. ldaho St.
Boise, ID 83702
more-more-more
ldaho Power Files Annual Fixed Cost Adjustment
Page2of 2
Opportunities for Public Review
ldaho 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, ldaho, 837O2l,ldaho Power offices or on ldaho Power's website, www.idahopower.com
or the !PUC website, www.puc.idaho.gov. Customers also may subscribe to the IPUC's RSS feed
to receive periodic updates via e-mail about the case. Written comments regarding the utility's
application may be filed with the IPUC. You can view additional related materials on the filing at
www. idahopower.com/rates.
About ldaho Power Company:
ldaho Power, headquartered in Boise, ldaho, and locally operated since 1916, is an electric
utility that employs more than 2,000 people who serve more than 500,000 customers
throughout a 24,000-square-mile'area in southern ldaho and eastern Oregon. With 17 low-cost
hydroelectric projects as the core of its diverse generation portfolio, ldaho Power's residential,
business and agricultural customers pay among the nation's lowest rates for electricity.
!DACORP, lnc. (NYSE: tDA), ldaho Powe/s independent publicly traded parent company, is also
headquartered in Boise, ldaho. To learn more, visit www.idahopower.com or
www.idacorpinc.com.
Contact: Stephanie McCurdy
Communication Specialist
ldaho Power
208-388-6973 and [e-mail]
1-800-458-1443 media line
###
To OurValued Customerc:
0n March 14, Idaho Power filed its annual
Fixed Cost Adjustment (FCA) with the ldaho Public
Utilities Commission (IPUC).Ihis year's FCA filing represents
an increase of $6.0 million for Residential and Small General
Service customers. The proposed FCA would result in an
FCA rate of 0.2913 cents per kilowatt-hour (kWh) for
Residential customers and 0.3709 cents per kWh for
Small General Service customers.
Overall lmpact
A summary of the proposed change to ldaho rates
is shown below.
*The overall percentage change for the affected classes.
lf the FCA proposal is approved as filed, the price change for a
typical residential customer using 1,050 kWh a month would
be about $1.20 per month beginning June 1.
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LJ
An IDACORP Company
Ihe FCA is a true-up mechanism that "decouplel" or separatet
energy sales from revenue in order to remove the financial
disincentive that exists when ldaho Power invests in demand-
side management resources. These financial disincentives occur
when customers use less energy due to the energy efficiency
activities the company invests in and promotel thereby causing
the company to recover less fixed costs through customers'
energy bills.
The FCA annually adjusts the electric rates for Residential and
Small General Service customers based on changes in energy
use during the previous year.lhe FCA is intended to provide
for the recovery of the IPUC-authorized level of fixed costs.
lf, because of reduced energy use per-customer during the prior
year, ldaho Power collects less than the authorized fixed-cost
amount, we collect the difference through a surcharge. lf
we collect more than the authorized amount, we refund the
difference to customers through a credit. ln the past seven years,
both scenarios have occurred. ln 2013, ldaho Power recovered
less than the authorized fixed cost amount.
Ihe company has a very positive perception of demand-side
management programs and believes that actively pursuing
energy efficiency and education programs is a beneficial priority.
Ihe FCA mechanism allows the company to pursue those
programs without experiencing negative financial impacts and
allows for a robust energy efficiency portfolio.
Opportunities for Public Review
ldaho 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 (47zw.Washington St., Boise,
ldaho, 83702), ldaho Power offices or on the IPUC's website,
puc.idaho.gov or ldaho Powe/s website, idahopower.com.
Customers also may subscribe to the IPUC's RSS feed to receive
periodic updates via e-mail about the case. Written comments
regarding the utility's application may be filed with the IPUC.
You can view additional, related materialt including a news
release on the filing at idahopower.com/rates.
We value your business and appreciate yau
taking the time ta read this notice.Thank you.
S!ffi*.@ Printed on recycled paper.
@2014ldaho Power
An loAcoRP company