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Home My WebLink About20160315News Release & Customer Notice.pdfffirut] fi ECEIVED 2il16li,t, l5 Pi{ l+: 00 '''' lrl l'\I r , 'l.l' _lr./- r'.'':alnl.l- I : .,.ill.,,.ri..,rr:ui1 po,lrER. NEWS REN-EASE ldaho Power Files Annual Fixed Cost Adjustment This onnuolfiling odjusts electric rotes for ldoho Residentioland SmallGenerol Service customers. The Fixed Cost Adjustment updotes rates bosed on chonges in energy use per customer during the previous yeor. BOISE, ldaho, March L5,2OL6 - Today ldaho Power filed its annual Fixed Cost Adjustment (FCA) with the tdaho Public Utilities Commission (IPUC). This year/s FCA filing represents an increase of about Sf f.Z million for Residential and Small General Service customers. tf the proposal is approved as filed, the price change for an average ldaho Power residentialcustomer in ldaho using 1,000 kilowatt-hours of energy a month would be an increase of about 52.16 per month beginningJune 1,2OL6. Revenue lmpact By Class: Percentage Change from Current Billed Rates ffi .\n iDICOFD C l! i.rty Fixed Cost Adjustment (FCAI Small General Residential Service 2.20%2.25% Overall Change* 2.20% *The overall percentage change for Residential and Small General Service customers ln May z01;s,the IPUC approved a settlement stipulation that modified the FCA mechanism by replacing weather-normalized sales with actualsales in the calculation to determine the FCA amount. This methodology change will impact the new rates effective June t,2OL6. 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 the wise use of electricity through the company's energy efficiency programs and efforts, but as customer energy use goes down, the fixed costs still must be recovered. Fixed costs include those 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 P.C 3ox 7rl (81107) l22i W tdaho Si Boise. lD 81702 !'nore-mo!'e-more ldaho Power Files Annual Fixed Cost Adjustment Page 2 of 7 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 refunds the difference to customers through a credit. 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 1472 W. Washington St., Boise, ldaho, 837O2l,ldaho Power offices or on ldaho Powe/s website, idahopower.com or the tPUC website, puc.idaho.sov. Customers also may subscribe to the IPUC's RSS feed to receive periodic updates via email about the case. Written comments regarding ldaho Powe/s application may be filed with the IPUC. You can view additional related materials about the fi ling at 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 nearly 525,000 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 Powe/s residentia!, business and agricultural customers pay among the nation's lowest rates for electricity. IDACORP, lnc. (NYSE: IDA), ldaho Power's independent publicly traded parent company, is also headquartered in Boise, ldaho. To learn more, visit idahopower.com or idacorpinc.com. Contact: StephanieMcCurdy Com m un ication Specialist ldaho Power 208-388-6973 and SMcCu rdy@idahopower.com 1-800-458-1443 media line ### To OurValued Customerc: 0n March 15, ldaho Power filed its annual Fixed CostAdjustment (FCA)with the ldaho Public Utilities Commission (IPUC). This year's FCA filing represents an increase of about $1 1.2 million for Residential and Small General Service customers. lf the FCA proposal is approved as filed, a typical residential customer in ldaho using 1,000 kilowatt-hours a month will see about a $2.16 increase to their monthly bill beginning June 1,2016. Overall lmpact *Ihe overall percentage change for Residential and Small General Service customers ln May 2015, the IPUC approved a settlement stipulation that modified the FCA mechanism by replacing weather-normalized sales with actual sales in the calculation to determine the FCA amount. This methodology change will impact the new rates effectiveJune 1, 2016. <Effi"gEE IYou6 E Printed on recycled paper. @20l6 ldaho Power Percentage Change from Current Billed Rates An IDACORp CompanY The FCA is a true-up mechanism that "decouples," or separates, energy sales from revenue to remove 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. ldaho Power encourages the wise use of electricity through our energy efficiency programs and efforts. But as customer energy use goes down, our fixed costs still must be recovered. Fixed costs include those 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 IPUC-authorized level of fixed costs. lf ldaho Power collects less than the authorized fixed-cost amount because of reduced energy use per-customer during the prior year, we're allowed to collect the difference through a surcharge. lf we collect more than the authorized amount, we'll refund the difference to customers through a credit. ln the past nine years, both scenarios have happened, ln 2015, ldaho Power collected less than the authorized fixed cost amount. ldaho Power values demand-side management, energy efficiency and education programs. The FCA mechanism allows us 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 (412W. Washington St., Boise, 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 about the filing at idahopower.comlrates. We value your business and appreciate you taking the time to read this notice. Thank you.