20160415News Release.pdf

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I tl lt'NEWS RELEASE
ldaho Power Files Annual Power Cost Adjustment
The power cost recovery proposol will meon o price increase for customers if opproved os filed,
but it also includes revenue to be shored with customers.
BOISE, ldaho, April 15, 2OL6 - Today ldaho Power filed its annual Power Cost Adjustment (PCA)
with the ldaho Public Utilities Commission (IPUC). The PCA is an annual rate adjustment that
passes on both the benefits and costs of supplying energy to ldaho Power customers. Neither
ldaho Power nor its shareholders receive any financial return on this filing-money collected
from the surcharge can be used only to pay power supply expenses. These typically represent
approximately one-fourth to one-third of the company's annual cost of serving customers.
lf the PCA proposal is approved by the !PUC, the amount ldaho customers pay for electric
service will increase by S17.3 million beginning June 1; the typical ldaho residential customer
using 1,000 kilowatt-hours of energy per month will see an increase of about Sf.SZ on their
monthly bill, beginningJune 1.
lncluded in this year's PCA rates, customers will receive a S3.2 million revenue sharing credit.
Since 2009 tdaho Power has shared a total of 5118 million with our customers, and will share
this additional 53.2 million this year if our filing is approved.
from Current Billed Revenue
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 S10 million over last year, primarily related to the addition of
new solar contracts, 2) ldaho Powe/s ldaho jurisdictional earnings above a 10 percent return
on equity were less than the prior year, resulting in a 55 million reduction in the revenue
sharing component of the PCA, and 3) last year's actual power costs exceeded forecasted levels
because of worse-than-expected water conditions and lower-than-expected surplus energy
sales.
Idaho Power's hydroelectric system is the company's largest power generation resource.
PO. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
2016 PCA Revenue lmpact by Class:
more-more-more
ldaho Power Files Annual Power Cost Adjustment
Page 2 of 2
Although the winter of 2015-2015 produced a better-than-average snowpack, it won't erase
the last several years of low water conditions in the region. "lt's important to understand that
the relationship between snow in the mountains and water available for power generation in
ldaho Power's system can change annually based on several factors," says ldaho Power Vice
President of Regulatory Affairs Tim Tatum. "Although it was a better water year in some parts
of ldaho Power's service area, last year's extremely dry winter left reservoirs in the Upper
Snake - a critical basin for tdaho 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 ldaho Power's dams, but we can only use the water that makes its
way downstream from those reservoirs."
For more information, see idahopower.com/PCA.
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 Power'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 Power's
application may be filed with the IPUC. You can view additional related materials on the filing at
id a hopower.co m/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 residential, business and
agricultural customers pay among the nation's lowest rates for electricity. IDACORP, lnc. (NYSE:
IDA), Idaho Power's independent publicly traded parent company, is also headquartered in
Boise, ldaho. To learn more, visit idahopower.com or idacorpinc.com.
Contact: StephanieMcCurdy
Comm unication Specialist
ldaho Power
208-388-6973 and [e-mail]
1-800-458-1443 media line
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