20180315Press Release and Customer Notice.pdf

ldaho Power Files Annual Fixed Cost Adiustment
BOISE, ldaho - On March 75,2018,1daho Power filed its annual Fixed Cost Adjustment (FCA) with the ldaho
Public Utilities Commission (IPUC). This year's FCA filing requests a decrease of approximately S19.3 million for
Residential and SmallGeneralService customers. lf the proposal is approved as filed, an average ldaho Power
residential customer in ldaho using 950 kilowatt-hours of energy per month would see a monthly price decrease
of about 53.60 beginning June 7,2OL8.
2018 FCA Revenue lmpact by Class
Percentage Change from Current Billed Rates
Residential Small General Service OverallChange*
-3.60%-3.73%-3.60%
*The overall percentage change for Residential and Small General Service Customers
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 energy efficiency programs, energy use per
customer may decline. But even if customer energy use goes down, the company still needs to recover its fixed
costs. Fixed costs include those associated with long-lasting infrastructure - generation plants, power lines,
substations and other equipment - as well as certain administrative costs.
The FCA allows ldaho Power to recover an IPUC-authorized level of fixed costs per customer. lf, because of
reduced energy use per customer during the prior year, the company collects less than the authorized fixed-cost
amount, it is allowed to collect the difference through a surcharge. lf the company collects more than the
authorized amount, it refunds the difference to customers through a credit. ln the past 10 years, both scenarios
have happened.
ln20L7,ldaho Power's energy efficiency programs saved an incremental 197,477 megawatt hours - enough to
power almost 77,OO0 average-sized homes for an entire year. Despite the increase in energy efficiency,
customers will experience a reduction in the surcharge because usage per customer was greater than it was in
20L6.
opportunities for Public Review I
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 (472W. Washington St., Boise, ldaho, 837021and ldaho
Power offices or on ldaho 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 ldaho Powe/s application may be filed with the IPUC.
About ldaho Power:
ldaho Power, headquartered in Boise, ldaho, and locally operated since 1916, is an electric utility that employs
approximately 2,000 people who serve roughly 542,000 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, lda,ho.
To Our Valued Customens:
0n March 15, ldaho Power filed its annual
Fixed Cost Adjustment (FCA) with the ldaho
Public Utilities Commission (IPUC). This year! FCA filing is a
decrease of $ 19.3 million for Residential and Small General
Service customers. lf the FCA proposal is approved as filed, a
typical residential customer in ldaho using 950 kilowatt-hours
per month will see about a $3.60 decrease to their monthly
bill beginning June 1.
OYerall lmpact
'Jhe overall percentage change for Residential and Small General Service customers.
3Effi EvE@tr
(D Printed on reqded paper.
@2018 ldaho Power
Percentage Change from Current Billed Rates
Residential Small General 5ervice Overall Change*
-3.600/o -3.73o/o -3.60%
2018 FCA REVENUE IMPACT BY CLA55
h roacocP comdY
?
I I
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 an IPUC-authorized
level of fixed costs per customer. lf, because of reduced energy
use per customer during the prior year. the company collects
less than the authorized fixed-cost amount, it is allowed to
collect the difference through a surcharge. lf the company
collects more than the authorized amount, it refunds the
difference to customers through a credit. ln the past 10 years,
both scenarios have happened.
ln 2011,ldaho Power's energy efficiency programs saved an
incremental 191,471 megawatt hours - enough to power
almost 17,000 average-sized homes for an entire year. Despite
the increase in energy efficiency, customers will experience a
reduction in the surcharge because usage per customer was
greater than it was in 20'16. ,
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 oflices(472 W. Washington
5t., Boise, ldaho, 83702) and ldaho Power offices or the
IPUC's web:ite, puc.idaho.gov, and ldaho Power's website,
idahopower.com. Customers also may subscribe to the
IPUC's RSS feed to receive periodic email updates about the
case. written comments regarding ldaho Power's application
may be filed with the IPUC.
Thank you for reading thls notice. We value your business!
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