20170315Customer Notice.pdf

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To Our Valued Customers:
0n March 15, ldaho Power filed its annual
Fixed Cost Adjustment (FCA) with the ldaho
Public Utilities Commission (IPUC). This year's FCA filing is an
increase of $6.96 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 per month will see about a $ 1 .31 increase to their
monthly bill beginning June l.
Overall lmpact
*The overall percentage change for Residential and Small General Service customers.
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@2017 ldaho Power
Percentage Change from Current Billed Rates
Residential Small General Service Overall Change*
'1.290/o 1.33o/o 1.29o/o
20'17 FCA REVENUE IMPACT BY CLASS
An IDACORP CompanY
FCA Background
The FCA is a true-up mechanism that separates energy sales
from revenue to eliminate financial disincentives for ldaho
Power to invest in demand-side management. The FCA
annually adjusts prices up or down based on changes in
energy use per customer during the previous year.
Because ldaho Power encourages the wise use of electricity
through our energy efficiency programs and efforts, energy
use per customer may decline. But even if customer energy
use goes down, we still need to recover our fixed costs. 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 allows ldaho Power to recover a Commission-
authorized level of fixed costs per customer. ll because of
reduced energy use per customer during the prior year, we
collect less than the authorized fixed-cost amount, 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 ten years, both scenarios have happened. ln 20'16,
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 negative
financial impacts, and provide a robust portfolio of options
for customers.
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 (472 W.
Washington St., Boise, ldaho, 83702), Idaho 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! RSS feed to receive periodic updates via
e-mail about the case. Written comments reqarding ldaho
Power's application may be filed with the IPUC. You can view
additional, related materials, including a news release on the
f iling at idahopower.com/rates.
We value your business and appreciate you
taking the time to read this notice. Thank you.