20170417Customer Notification.pdf

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NEWS RELEASE
ldaho Power Files Annual Power Cost Adjustment
The power cost recovery proposolwill meon a price increose for customers if approved os filed
effective June 7, 2077.
BOISE, ldaho, April 14, 2OL7 - Today, ldaho Power filed its annual Power Cost Adjustment (PCA)
with the tdaho Public Utilities Commission (IPUC). The PCA is a cost recovery toolthat passes on
both the benefits and costs of supplying energy to ldaho Power customers. Neither tdaho
Power nor its shareholders receive any financia! 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 proposa! is approved by the IPUC, the typical ldaho residential customer using 1,000
kilowatt-hours (kWh) of energy per month will see an increase of about SO.SS on their monthly
bill, beginning June 1.
The amount all ldaho customer classes pay for electric service will increase by 510.6 million; the
actual percentage of change will depend on a custome/s class and the rate they pay.
2Ol7 PCA Revenue lmpact by Class:
Cha from Current Billed Revenue
There are a few main factors contributing to this year's PCA increase:
Hydro conditions are expected to be better than norma!, resulting in more low-cost hydro
generation available to serve customers. However, the benefit from improved hydro conditions
is expected to be more than offset by higher costs associated with new solar and wind power
purchase agreements under the Public Utility Regulatory Policies Act of 1978 (PURPA), and
higher coal-fired generation costs. Additionally last year's actual power costs exceeded forecast
levels mostly attributable to worse-than-expected water cond itions.
lncluded in this year's PCA rates, customers will receive a S13 million refund of previously
PO. Box 70 (83707)
1221 W' ldaho St.
Boise, lD 83702
Smal!
General
Service
Large
General
Service
Large
Power
lrrigation Overall
Change
Residential
O.58o/o O.27o/o L.LO%L.75o/o 0.94%o.93%
more-more-more
ldaho Power Files Annual Power Cost Adjustment
Page 2 of 2
collected energy efficiency rider funds. This refund will have no impact on existing and new
demand side management services. A full portfolio of demand response and energy efficiency
programs for all customer sectors will continue to be offered.
"lt's also important to understand that the availability of water for hydroelectric generation
depends on many factors, including how fast spring runoff occurs, which in turn shapes how
much runoff remains in the summer when demand for electricity peaks," said ldaho Power Vice
President of Regulatory Affairs Tim Tatum. "lf the snow melts too quickly, flood control efforts
take priority, and in some cases excess water must be spilled, rather than used for generation,
to avoid overfilling reservoirs. ldaho Power is currently facing this situation."
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 tPUC offices 1472 W. Washington St.,
Boise, ldaho, 837O2l,ldaho Power offices or on ldaho Power's website, idahopower.com, or the
!PUC website,puc. idaho.gov. Customers also may subscribe to the IPUC's RSS feed to receive
periodic updates via emai! 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
ida hopower.com/rates.
About ldaho Power Company:
tdaho Power, headquartered in Boise, ldaho, and locally operated since 1916, is an electric
utility that employs more than 2,000 people who serve approximately 535,000 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 Power's residential,
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:Stephanie McCurdy
Comm unication Specialist
tdaho Power
208-388-6973 and [e-mail]
1-800-458-1443 media line
###
, I r l..i;' _ :' i_- i.,
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 atthe IPUC
offices (+ZZ 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 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
?*11 ia:i ilr PH tr: 58
ldaho Power Files
2017 Power Cost Adjustment
On April 14, Idaho Power submitted its annual Power
Cost Adjustment (PCA) proposal for approval by the
Idaho Public Utilities Commission (IPUC). The PCA is a
cost recovery tool that passes on both the benefits and
costs of supplying energy to Idaho Power customers.
Neither Idaho 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.
How the 2017 PCA Will Change Prices
If the PCA proposal is approvedbythe IPUC, the
typical Idaho residential customer using 1,000
kilowatt-hours (kwh) of energy per month will see
an increase of about $0.59 on their monthly bill,
beginningfune 1.
The amount all Idaho customer classes pay for electric
service will increase by $10.6 million; the actual
percentage of change will depend on a customer's
class and the rate they pay.
3Iffi*@ 201 7 ldaho Pows
Percentage Change from Current Billed Revenue
Residential
small
General
Service
Large
General
service
Large
Power lrrigation overall
Change
0.s8%0.21o/o 1.10o/o 1.750/o 0.94o/o 0.93o/o
PROPOSED 2017 PCA RTVENUE IMPACT BY CLASS:
an lDAcoRp conDrnv 3lIE.lf You[@
llUhy 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 last year's forecasted costs in
balance with costs actuallyincurred bythe company
bylooking backatwhat 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 a few main factors contributing
to this year's PCA increase:
Hydro conditions are expected to be better than
normal, resulting in more low-cost hydro generation
available to serve customers. However, the benefit
from improved hydro conditions is expected to be
more than offset by higher costs associated with new
solar and wind power purchase agreements under the
Public Utility Regulatory Policies Act of 197S (PURPA)
and higher coal-fired generation costs. Additionally,
lastyear's actual power costs exceeded forecast levels
mostly attributable to worse-than-expected water
conditions.
Included in this year's PCA rates, customers will
receive a $13 million refund of previously collected
energy efficiency rider funds. This refund will have no
impact on existing and newdemand side management
services. A full portfolio of demand response and
energy efficiency programs for all customer sectors
will continue to be offered.
Itt also important to understand that the availability
ofwater for hydroelectric generation depends on
many factors, including how fast spring runoff occurs,
which in turn shapes how much runoff remains in the
summer when demand for electricity peaks. If the snow
melts too quickly, flood control efforts take priority,
and in some cases excess water must be spilled, rather
than used for generation, to avoid overfilling reservoirs.
Idaho Power is currently facing this situation. The
U.S. Army Corps of Engineers manages a region-wide
flood control plan and sets water elevation targets for
Idaho Power's Brownlee Reservoir. In above average
water years, such as this year, lower than normal water
elevation targets are set for Brownlee Reservoir, as
Idaho Power has to make room to capture anticipated
spring runoff to prevent downstream flooding.
What will be the combined effect
of the Annual Adjustment
Mechanisms (PCA and the FCA)?
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 file{ the combined impact for those
two customer classes will be a $9.85 million increase
in the amount they pay for electric service, beginning
Iune l. The typical Idaho residential customer using
1,000 kWh of energy per month would see an increase
of about $1.90 on their monthlybill if both the PCA and
FCA are approved as filed.
How can I manage my bill
and control costs?
Also, you can go to idahopower.com/highbillhelp
to find out howto understandyourbill, review
payment options and get information about Idaho
Power's energy efficiency programs.
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