20160415Customer Notice.pdf

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 (+ZZ W. Washington St., Boise, Idaho, 83702),
Idaho Power offices or on Idaho Power'swebsite,
idahopower.com, or the IPUC website, 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 the utility's application
maybe filedwith the IPUC. You canviewadditional
related materials on the filing, including a news
release, at idahopower.com/rates.
@ Printed on recycled paper
ctD#47088/04-16
@ 2015 ldaho Pows
ldaho Power Files
2016 Power Cost Adjustment
On April 15, Idaho Power submitted its annual Power
CostAdjustment (PCA) proposal for approval by the
Idaho PublicUtilities Commission (IPUC). The PCA
is an annual rate adjustment that passes on both the
benefits and costs of supplying energy to Idaho Power
customers. Neither Idaho Power nor its shareholders
receive anyfinancial return on this filing - money
collected from the surcharge can be used only to pay
power supply expenses.
How the 2015 PCA Will Change Prices
Ifthe PCA proposal is approved by the IPUC, the
typical Idaho residential customer using 1,000
kilowatt-hours (kwh) of energypermonthwill see an
increase of about$1.32 on theirmonthlybill, beginning
Iune l.
The amount all Idaho customer classes pay for electric
service will increase by $17.3 million. This is an overall
percentage increase of 1.57 percent from current
prices; the actual percentage ofchange will depend on
a customer's group and the rate theypay.
Included in this year's PCA rates, customers will
receive a $3.2 million revenue sharing credit. Since
2009 Idaho Power has shared a total of $118 million
with our customers, and will share this additional
$3.2 million this year if our filing is approved.S5ffi*"
an tDACORp CompanY
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tlUhat will be the combined effect of
the PCA and the FCA filed in March?
On March 15, Idaho Power filed its annual Fixed Cost
Adjustment (FCA). The FCAonlyapplies to Residential
and Small General Service customers. If both proposals
are approved as filed, the combined impact for those
two customer classeswill be an $18.0 million increase
in the amount they pay for electric service, beginning
June 1. The typical Idaho residential customer using
1,000 kwh of energy per month would see an increase
of about $3.48 on their monthly bill if both the PCA and
FCA are approved as filed.
Why is the PCA an increase this year?
The PCA has two components: the forecast and the
true-up. The forecast reflects Idaho Power's anticipated
fuel costs, purchased power costs, and customer
benefits from sales of surplus energy for the upcoming
April through March. The true-up brings lastyear's
forecasted costs in balance with the costs actually
incurred by the company by looking back at what
happened the previous April through March. Prices are
established based on the forecast and the true-up to
align actual collection with actual costs.
There are three main factors contributing to this year's
PCA increase: 1) costs associated with power purchase
agreements under the Public Utilities Regulatory Policy
Act of 1978 (PURPA) have increased by approximately
$10 million over last year, primarily related to the
addition of new solar contracts, 2) Idaho Power's Idaho
jurisdictional earnings above a 10 percent return on
equitywere less than the prioryear, resulting in a $5
million reduction in the revenue sharing component of
the PCA, and 3) lastyear's actual power costs exceeded
forecasted levels because of worse-than-expected
water conditions and lower-than-expected surplus
energy sales.
Itt also important to understand that the relationship
between snow in the mountains and water available for
power generation in Idaho Power's system can change
annually based on several factors. Although it was a
betterwateryear in some parts of Idaho Power's service
area, last year's extremely dry winter left reservoirs
in the Upper Snake - a critical basin for Idaho
Power - very low by summer's end. Now as water
begins moving out of the mountain snowpack, those
reservoirs need to be refilled. Some of that water will
ultimately flow through Idaho Power's dams, but we
can only use the water that makes its way downstream
from those reservoirs.
In short, the winter of 2015-2016 won't erase the last
several years of lowwater conditions in the region.
How can I manage my bill
and control costs?
The price we pay for electric service is a set rate.
But there are actions you can take to help manage
your energy use and lower your electric bills.
Five simple things you can do
to lower your energy use:
. Turn lights, appliances and electronics
off when not in use.
. Clean or replace furnace filters at least
twice each year.
. Clean coils on refrigerators and freezers
semi-annually.
. Use timers on landscape pumps and
special-use heaters.
. Lower water heater temperature
to 120" F.
Also, you can go to idahopower.com/highbillhelp
to find out how to understand your bill, review
payment options and get information about Idaho
Power energy efficiency programs.
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