20180412News Release and Customer Notice.pdf

ldaho Public Utilities Commission
Otfice ol the SecrstarvRECEIVED
APR | 2 2018 $ilmlpFo,l,ER.
Boise, ldaho An IDACORP Companv
NEWS RELEASE
ldaho Power Proposes Rate Decrease in Annual Power Cost Adjustment
April 13,2018
BOISE, ldaho - ldaho Power has filed its annual Power Cost Adjustment (PCA) with the ldaho Public
Utilities Commission (IPUC). The PCA is a cost recovery tool that passes on both the benefits and costs of
supplying energy to ldaho Power customers.
lf the PCA proposal is approved by the IPUC as filed, the typical ldaho residential customer using 950
kilowatt-hours (kWh) of energy per month will see a Sf .Zg decrease on their monthly bill, beginning
June 1.
The amount all ldaho customer classes pay for electric service will decrease by 522.6 million; the actual
percentage of change will depend on a customer's class and the rate they pay.
2018 PCA REVENUE IMPACT BY CLASS
Percentage Change from Current Billed Revenue
Residential SmallGeneral
Service
Large General
Service r
Large Power 2 lrrigation Overall
Change
-L.29%-0.80%-2.2Oo/o -3.27%-L.9L%-1.90%
r lncludes lighting schedules; z lncludes special contracts
The PCA has two main components: the forecast and the true-up. The forecast reflects ldaho Power's
anticipated fuel costs, purchased power costs and customer benefits from sales of surplus energy for the
coming April through March. The true-up brings last year's forecasted costs in balance with costs
actually incurred by the company by looking back at what 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 decrease
Last year's actual power supply costs were less than anticipated, primarily due to better-than-expected
water conditions, which resulted in ldaho Power having more low-cost hydro generation available to
serve customers. This cost reduction is reflected in the true-up portion and is partially offset by an
increase in the forecast component of the PCA, as well as the elimination of a one-time refund of energy
efficiency rider funds provided through last yea/s PCA. For the 2018 PCA, the combined impact of
change in each of the PCA components results in a 522.6 million decrease in the amount all ldaho
customer classes pay for electric service.
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.
P.O. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
ldaho Power has proposed three rate decreases this spring - the PCA, the annual Fixed Cost
Adjustment (FCA) and direct rate reductions resulting from tax reform. lf allthree are approved by the
IPUC as filed, residential customers will see a total price decrease of 7.O4 percent effective June 1, 2018.
Other customer classes are impacted as follows:
COMBINED !MPACT OF 2018 RATE FILINGS
Percentoge Change from Current Billed Revenue
Residentia I SmallGeneral
Service
Large General
Service r
Large Power 2 lrrigatio n
Fixed Cost Adjustment (FCA)
-3.60%-3.73%N/A N/A N/A
Power Cost Adjustment (PCA)
-7.29%-o.80%-2.20%-3.27%-L.9LYo
Tax Reform
-2.15%-2.1096 -2.29%-2.25%-2.33%
COMBINED IMPACT
Totals may not add up exactly due to rounding
-7.U%-6.63%4.48%-5.52%{.25%
r lncludes lighting schedules; z lncludes special contracts
Opportunities for Public ReYiew
ldaho Powe/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, 837021,
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 Power's application may be filed with the IPUC.
About ldaho Power:
ldaho Power, headquartered in Boise, ldaho, and locally operated since 1915, is an electric utility that
employs approximately 2,000 people who serve roughly 545,000 customers throughout a24,OOO-
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. lDAcoRP 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.
Jordan Rodriguez
Communications Specialist
j rodriguez@ ida hopower.com
208-388-2460
What will be the Combined Effect
of these Rate Decreases?
Pending IPUC approval, the proposed 1.29 percent
reduction ofthe PCA and 2.15 percent reduction
resulting from tax reform will be added to the 3.6 percent
reduction proposed earlier this spring by Idaho Power's
annual Fixed Cost Adjustment (FCA) mechanism. If
approved as filed, the three filings would result in a
total rate reduction of7.04 percent for ldaho residential
customers starting Iune l. Other customer classes are
impacted as follows:
Residential 5mall General
service
La.ge
General
Servi(er
la?ge
Powerr lirigation
-3.60%
FIXED COST ADJUSMENT (FCA)
-3.73o/o N/A N/A
POWER COST ADJUSMENT (PCA)
-0.80% -2.20o/o -3.27o/o
TAX REFORM FILING
N/A
'1.29o/o -1.91o/o ldaho Power Files Two
Proposals to Decrease Rates
Idaho Power is proposing rate decreases for its Idaho
customers this spring through the annual Power Cost
Adjustment (PCA) and stemming from recent federal
and Idaho state taxrate changes.
Pending approval from the Idaho Public Utilities
Commission (IPUC), both of these rate decreases will go
into effect on June l, 2018. The combined rate reduction
resulting from the PCA and tax reform will be added to
the reduction proposed earlier this spring through the
annual Fixed Cost Adjustment mechanism - read the
backpanel of this brochure to see the cumulative impact
ofthese reductions.
-2.15o/o -2.10o/o '2.29o/o -2.25o/o '2.33o/o
'7.O4o/" -6.630/"-4.48%-5.52%-4.25o/o
t ln(lud€s liqhtinq s(hedules; ! lncludes spe(ial (ontracts
Opportunities for Public Review
Idaho Power's filing is a proposal that is subject to
public review and approval bythe IPUC. Copies of
the application are available to the public at the IPUC
offices (472W. Washington St., Boise, Idaho, 83702),
Idaho Power offices or on Idaho Power'swebsite,
idahopower.com, or the IPUC website, puc.idaho.gov.
Customers also may subscribe to the IPUCb RSS feed
to receive periodic updates via email about the case.
Written comments regarding Idaho Power's application
may be filed with the IPUC.
Thank you for reading this notice. We value your business!
Annual Power Cost Adjustment
Calls for Rate Decrease
On April 12, Idaho Power filed its annual PCA with
the IPUC. The PCA is a cost recoverytool 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.3Iffi*@ Printed on recycled paper
O 2018 ldaho Power
An IOACORP Companv
COMBINED EFFECT OF ALt THREE FILINGS
COMBINED IMPACT
Totals may not add up exadly due to rounding
BILL-INSEBT_PCA+TilFiling-04-18_v7.indd 1 -2
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How the 2018 PCA will Change Prices
If the PCA proposal is approved by the IPUC as filed,
the typical Idaho residential customer using 950
kilowatt-hours (kwh) of energypermonthwill see a
$1.29 decrease on their monthly bill, beginning Iune l.
The amount all Idaho customer classes payfor electric
service will decrease by $22.6 million; the actual
percentage of change will depend on a customer's class
and the rate they pay.
How willTax Reform Impact Rates?
Accordingto an agreementbetween Idaho Power,
IPUC Staff and the Industrial Customers of Idaho
Power, customers will see a total benefit associated
with reduced tax expense of $33.9 million, provided
through: (1) a base rate reduction of approximately $18.7
million, (2) an additional $7.8 million decrease thatwill
be provided through the 2018 Power Cost Adjustment
mechanism, and (3) a non-cash annual benefit of $7.4
million in the form of an offset to other deferred costs.
If the proposal is approved by the IPUC as filed, the
typical Idaho residential customer using 950 kilowatt-
hours (k\Mh) of energy per month will see a monthly bill
decrease of $2.15, beginning Iune l.
Small
Gereral
servi(e
Large
6o.eral
Servi(el Power)Residential Large lrrigation overall
change
-1.29o/o -0.80% -2.20o/o -3.27o/o -1.91o/o -1.90o/o
' lncludes lighring schedules;' lncludes spe(ial (ontracts
Why is the PCA a Decrease this Year?
The PCA has two main 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 coming
April through March. The true-up brings lastyear's
forecasted costs in balancewith costs actuallyincurred
by the company by looking back at what 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 decrease:
Last year's actual power supply costs were less than
anticipated, primarily due to better-than-expected water
conditions, which resulted in Idaho Power having more
low-cost hydro generation available to serve customers.
This cost reduction is reflected in the true-up portion
and is partially offset by an increase in the forecast
component of the PCA, as well as the elimination of
a one-time refund of energy efficiency rider funds
provided through last year's PCA. For the 2018 PCA,
the combined impact of the change in each of the PCA
components results in a $22.6 million decrease in the
amount all Idaho customer classes pay for electric
service.
BILL-INSERT_PCA+TaxFiling_04-18_v7.indd 3-4
Poweti
-2.15o/o -2.10o/o -2.29o/o -2.25o/o
' ln(lude5 lighting schedules;'? lncludes spe(ial (onlra(tt
-2.220/o
What are the Components
of the Tax Reform Rate Changes?
The cash-related direct rate reductions result in a
customer benefit of about $26.5 million beginning
in June of20l8. The new tax rates also required an
adjustment to deferred tax expense, reducing amounts
customers will owe in the future. Non-cash tax benefits
of approximately $7.4 million will accumulate to serve
as an offset to other current or future deferred expenses,
reducing future amounts that would otherwise be owed
bycustomers.
In addition to rate reductions resulting from tax reform,
Idaho Power and parties have agreed to extend the
revenue sharing program beyond 2019. The current
program, in place since 2009, allows the company to
use its accumulated investment tax credits to shore up
its rate of return or share revenue with customers when
that return exceeds certain levels.
4l1il14 1:2SPM
Re5idential
Larg€
G€neral
Servirer
lrrigalior
-2.33o/o
Overall
Change
Small
General
servi(e
Large
PROPOSED 20,I8 TAX REFORM REVENUE IMPACT BY CLASS
Percentage Change from Current Billed Revenue
Percentage Change from Current Billed Revenue
PROPOSED 2018 PCA REVENUE IMPACT BY CTASS
slrmloFo,l,ER
An loAcoRP compan!ldaho Power Files Two Proposals to Decrease Rates
ldaho Power is proposing rate decreases for its ldaho customerg this spring through the annual Power Cost
Adjustment (PCA) and stemming from recent federal and ldaho state tax rate changes. Pending approval
from the ldaho Public Utilities Commission (IPUC), both rate decreases will go into e{fect on June 1, 2018.
How the 2018 PCA Will Change Prices
On April I2, Idaho Power filed its annual PCA with the IPLTC.
The PCA is a costrecoverytool that passes on both the henefits
and costs ofsupplying encrgyto Idaho Power customers,
Ifthe PCAproposal is approved bythe IPUC as filed, the
typical Idaho residential customer using 950 kilowatt-hours
(kWh) ofenergy per monthwill see a $1.29 decrease on
their monthly bill, betinninB lune t. The amount all ldaho
customerclasses payfor electric seryicewill decreoe by
$22.6 million; rhe actual percentage ofchangewill depend
on a customer's class and the rate theypay.
{.29% -0.80% -2.20o/o -3.27Eo -1.91% -1.90%
lnduder ligtting rchedrl.l; I rtr.lud€stpeoal o.i.ttr
tlUhy is the PCA a Decrease this Year?
The PCA hastwo maincomponents: the forecast and the
true-up. The forecastreflects Idaho Power! anticipated fuel
costs, purchasedpowercosts and customer benefits from
sales ofsurplus energyfor the comingApril through March.
The true-up brings latyear's forecasted costs in balance
with costs actually incuned by the company bylooking back
atwhat happened theprfliousApril through March. Prices
are establishcd based onthe forccast andthe true-up to
align actual collection with actual costs,
There are afewmain factoB contributingto thisyear's
PCA deoease Last year's actual power supply costs
wre less than anticipated, primarilydueto better-than-
expected waterconditions, which resulted in ldaho Power
having more low-cosr hydro generation availableto serve
customers.This cctreduclion is reflected in the true-up
portion andispartiallyoffsetbyan increa6ein theforecasl
component ofthe PCA, as well as the elimination ofa
one-time refund ofentrgy efficiency riderfunds provided
through lastyear's PCA. Forthe 2018 PC , the combined
impact ofthe chmge ineach ofthe PCAcomponents results
in a $22.6 million decrease in the amount all Idaho customcr
classes payfor electric seryice.
How will Federal Tax Reform
lmpact Customer Rates?
Idaho Power customers within the company's ldaho sewice
areawill experience arate decreGein 2018 6 a result
of Federal Tu Reform and Idaho state tu rate chmges.
Customers will see a total benefit associated with taxreform
of$33.9 million, provided through: (l) abase rate reduction
of approximately $18.7 miltion, (2) an additional $7.8 million
decrease that will be provided through the 2018 Power Cosl
Adtustment mechanism, and (3) a non-cash annual benefit
of $7.4Eillion.
Iflhe proposal is approved by the IPUC as filed, (he typical
Idaho residential customer using 950 kwh ofenergyper
month wil I see a $2. I 5 d ecrease on their month ly bil l,
beginning Iune I .
-2.15o/o -2.10o/o -2.29o/o'2.25o/o
. okrJl,.r9.n.n (hilg.
-2.33o/o -2.22o/o
4121A 1:NN
ChangeIPROPOS€D 2018 TAX REFORM REVENUE IMPACT BY CLASSPercentage Change from Current Billed Reyenue
PROPOSED 2018 PCA REVENUE IMPACT BY (LAS5
PRE.9ORTED
STANDARD
U.S, POSTAGE
PAID
BOI5E, ID
%RMtT NO. 679
What will be the
Combined Effect of
these Rate Reductions?
Pending IPUC approval, the proposed
1.29 percentreduction ofthe PCA ild 2.15
percent reduction resulting from taxreform
willbe added to the 3.6 percent reduction
proposed earlier this spring by Idaho
PNer's annual Fixed Cost Adjustment
(t..CA) mechanism. If approved as filed,
the threefilings would result in arotal
rate reduction of704 percent for Idaho
residential custorners starting lune l. Rate
reductions range from 4.25 to 6.63percent
for other customer classes.
-7.04% -6.53% -4.1a.h -5.52yn -1.25%
I hddes lighting irhcdul.i, , hrludct rp..ial (ontadt
3ilmrf Po,l,ER.
An IDACORP Companv
P O. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
lmoortantlnformation Please Note: We want to ensure all of our cuttomers
have sufficienttime to submit comments to the IPUC.
Because your bill is procesed toward the end of the
IPUC's review of our request,lreu will receive this
notifi(ation twi(e: first in thas postcard and t}ten in
an insert in your bill later this month.
@
' -l''r' .i'' ::i.,. -
FIXTD COSI ADJUSMENT{F'A)
3.60% -1.130/r N/A N/A N/A
POWER COST AOIU5MINT (PCA)
-1.)9d. '0.80% .2.2096 -3)1d,. -r.910/.
TAX RETORM FILING
.).150i 7.100/" 2.29% 2.25% -2.31%
Opportunities for
Public Review
Idaho Powerl filing is aproposal that is
subiect to public review and approval by
the IPUC. Copies ofthe application are
available to the public at the IPUC offices
(472W Wilhingron Sr., Boise, tdaho,
83702), Idaho Power offices or on Idaho
Power's website, idahopowei.com, orthe
IPt.lC website, puc.idaho.gov. Customers
also maysubscribero the IPUC'S RSS
feed to receive periodic updatesvia
email aboutthe case, Written comments
regarding Idaho Power's application may
be filedwirh the IPUC.
COMBII{ED IMPACT
t.r.L il.y io( di c, .'.dly d( to r.urdnq
. \15'r
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