20161021News Release.pdf

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NEWS RELEASE
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Idaho Power Makes Two Regulatory Filings
The proposals ask regulators to approve customer rates reflecting the accelerated depreciable life
of a coal-fired power plant as the company assesses closure of the facility, as well as an update to
general depreciation rates.
BOISE, Idaho, Oct. 21, 2016 -Today, Idaho Power submitted two filings to the Idaho Public
Utilities Commission {IPUC). One is related to the company's North Valmy Power Plant (Valmy)
in Nevada, and the other addresses revisions to the company's depreciation rates.
Va/my Accelerated Depreciable Life
Idaho Power owns 50 percent of the coal-fired North Val my Power Plant near Battle Mountain,
Nevada. The Valmy filing requests adjusting customer pricing to reflect the accelerated
depreciable life for the power plant. Currently, the depreciable life for Valmy is based on a
depreciation schedule that ends in 2031 for Unit 1 and 2035 for Unit 2. The proposed
depreciation schedule would move the date of full depreciation up to 2025 for both units.
Idaho Power's 2016 assessment of Val my concluded it may not benefit customers from an
economic and electric reliability perspective to operate the facility beyond 2025. This
accelerated depreciation schedule is part of Idaho Power's commitment to a glide-path away
from coal, and ensures that the remaining costs of Val my will be allocated to those customers
who will benefit from this resource.
The accelerated depreciation schedule for Val my requires advancing the recovery of the
remaining plant investment costs. Similar to paying off a home or car loan early, costs are
compressed into a shorter schedule. If Idaho Power uses a schedule that ends in 2025, it would
result in a $28.5 million increase to accelerate recovery according to today's filing. This amount
includes accelerated depreciation of the plant, decommissioning costs, and capital investments
forecasted through the remaining life of the plant.
Depreciation Study
Every five years, Idaho Power files a depreciation study to adjust its depreciation rates to match
the longevity it is currently experiencing for utility plant and equipment. Depreciation rates
establish the amount of time over which Idaho Power recovers its investments in the electrical
more-more-more P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
system through rates.
Idaho Power Makes Two Regulatory Filings
Page 2 of 3
The difference in depreciation expense included in current rates and depreciation expense
reflected in today's filing is a $6. 7 million increase.
Customer Rates
If the proposals are approved by the IPUC, the price Idaho customers pay for electric service
will increase by about $35.2 million beginning June 1, 2017. The typical Idaho residential
customer using 1,000 kilowatt-hours (kWh) of energy per month will see an increase of about
$3.08 on their monthly bill. This is an overall percentage increase of 3.10 percent from current
prices. The actual percentage of change will depend on a customer's group and the rate it pays.
Revenue Impact By Class
Percentage Change from Current Billed Rates
Valmy Depreciable Life
Depreciation Study
Combined Effect
1 Includes Lighting Schedules
2 Includes Special Contracts
Residential
2.42%
0.57%
2.99%
Small
General
Service
2.30%
0.54%
2.84%
For more information, see idahopower.com/rates.
Opportunities for Public Review
Large
General Large
Service 1 Power 2
2.58% 2.58%
0.60% 0.60%
3.18% 3.18%
Overall
Irrigation Change
2.64% 2.51%
0.62% 0.59%
3.26% 3.10%
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 (472 W. Washington St.,
Boise, Idaho, 83702), Idaho Power offices or on Idaho Power's website, 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 Idaho Power's
application may be filed with the IPUC. You can view additional materials on the filing at
idahopower.com/rates.
About Idaho Power Company:
Idaho Power, headquartered in Boise, Idaho, and locally operated since 1916, is an electric
utility that employs more than 2,000 people who serve nearly 530,000 customers throughout a
24,000-square-mile area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric
Idaho Power Makes Two Regulatory Filings
Page 3 of 3
projects as the core of its diverse generation portfolio, Idaho Power's residential, business and
agricultural customers pay among the nation's lowest rates for electricity. IDACORP, Inc. (NYSE:
IDA), Idaho Power's independent publicly traded parent company, is also headquartered in
Boise, Idaho. To learn more, visit idahopower.com or idacorpinc.com.
Contact: Stephanie Mccurdy
Communication Specialist
Idaho Power
208-388-6973 and [e-mail]
1-800-458-1443 media line
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