20150313News Release and Customer Notice.pdf

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ldaho Power Files Annual Fixed Cost Adjustment
This onnual filing odjusts electric rotes for ldaho Residentiol ond Smoll Generol Service customers.
The Fixed Cost Adjustment updates rates based on changes in energy use per customer during the
previous year.
BOISE, ldaho, March L3,2OL5 - Today ldaho Power filed its annual Fixed Cost Adjustment (FCA)
with the ldaho Public Utilities Commission (IPUC). This year's FCA filing represents an increase
of about S2.0 million for Residential and Small General Service customers. lf the proposal is
approved as filed, the price change for an average ldaho Power residential customer in ldaho
using 1,050 kilowatt-hours of energy a month would be an increase of about SO.g0 per month
beginning June 1.
Revenue lmpact By Class: Percentage Change from Current Billed Rates
Small
General Overall
Residential Service Change*
Fixed Cost
Adjustment (FCAI 0.35%
*The overall percentage change for Residential and Small General Service customers
The FCA "decouples," or separates, energy sales from revenue in order to remove financial
disincentives that exist when ldaho Power promotes energy efficiency programs and activities.
ldaho Power encourages customers to use less electricity through the company's energy
efficiency programs and efforts. But as consumption goes down, the fixed costs remain
constant, or fixed, and still must be recovered. Fixed costs are costs that do not change with the
level of consumption. They include costs associated with long lasting-infrastructure-things like
generation plants, power lines, substations, and other equipment-as well as certain
administrative costs.
lf, because of reduced energy use per-customer during the prior year, ldaho Power collects less
than the level of fixed costs authorized by the IPUC, the company is provided an opportunity to
collect the difference through a surcharge. lf ldaho Power collects more than the authorized
amount, the company is required to refund the difference to customers through a credit.
P.O. 8ox 70 (83707)
1221 W. ldaho St.
Boire. lO 83702
O.32o/o O.35o/o
more-more-more
ldaho Power Files Annual Fixed Cost Adjustment
Page 2 of 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 !PUC offices (472 W. Washington St.,
Boise, ldaho, 837021,ldaho Power offices or on ldaho Power's website, www.idahopower.com
or the IPUC website, www.puc.idaho.gov. Customers also may subscribe to the IPUC's RSS feed
to receive periodic updates via email about the case. Written comments regarding ldaho
Power'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 1915, is an electric
utility that employs more than 2,000 people who serve about 516,000 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 diverse generation portfolio, ldaho Power's residential, business and
agriculturalcustomers pay amongthe nation's lowest rates for electricity. IDACORP, Inc. (NYSE:
IDA), ldaho Power'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
208-388-5973 and [e-mail]
1-800-458-1443 media Iine
###
Public Utilities Commission (IPUC). This yea/s FCA filing
represens an increase of about $2.0 million for Residential
and Small General Service customers. lf the FCA proposal
is approved as filed, a typical residential customer in ldaho
using '1,050 kWh a month will see about a $0.36 increase
to their monthly bill beginning June 1.
Overall lmpact
*'lhe overall percentage change for Residential and Small General Service customers.
FCA Background
The FCA is a true-up mechanism that "decouples," or
separates, energy sales from revenue to remove the financial
disincentives that exist when the company invests in
demand-side management resources. The FCA annually
adjusts the electric rates for ldaho Residential and Small
General Service customers based on changes in energy
use during the previous year.
0n March 13, ldaho Power filed its annual
Fixed CostAdjustment (FCA)with the ldaho
Percentage Change from Current Billed Rates
ldaho Power encourages customers to use less electricity
through the company's energy efficiency programs and
efforts. But as consumption goes down, our fixed costs remain
constant, or fixed, and still must be recovered. Fixed costs
include costs associated with long lasting infrastructure -things like generation plants, power lines, substations, and
other equipment - as well as certain administrative costs.
The FCA provides ldaho Power an opportunity to recover the
Commission-authorized level of fixed costs. lf ldaho Power
collects less than the authorized fixed-cost amount because
of reduced energy use percustomer during the prior year,
we're allowed to collect the difference through a surcharge.
lf we collect more than the authorized amount, we're required
to refund the difference to customers through a credit. ln the
past eight years, both scenarios have occurred. ln 2014, ldaho
Power recovered less than the authorized fixed cost amount.
ldaho Power values demand-side management, energy
efficiency and education programs. The FCA mechanism
allows the company to pursue those programs without
experiencing negative financial impacts, providing 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
(472W.Washington St., Boiss ldaho, 83702), ldaho Power
offices or on the IPUC's website, puc.idaho.gov or ldaho
Power'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 ldaho
Power's application may be filed with the IPUC. You can
view additional, related materials, including a news release
on the filing at idahopower.com/rates.
We value your husiness and appreciate you
taking the time to read this notice. Thank you.
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@2015 ldaho Power
E y youEDAn ITACOIP Cmpany