20190315Customer Notice and News Release.pdf

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rel]nl0PO'I'ER.
An IDACORP Company
ldaho Power Files Annual
Fixed Cost Adjustment
On lVarch 15, ldaho Power filed its annual Fixed
Cost Adjustment (FCA) with the ldaho Public Utilities
Commission (IPUC). This year's FCA filing requests an
increase of $19.2 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 $3.49
increase to their monthly bill beginning June 1.
Overall lmpact of Proposed
Rate Changes Filed to Date
The FCA changes are in addition to ldaho Power's
Feb. 12 filing to decrease the ldaho Energy Efficiency
Rider (EE Rider) collection percentage, and its March
8 filing requesting an increase in rates associated with
the company's exit from its North Valmy Plant (Valmy).
The company also plans to file its annual Power Cost
Adjustment (PCA) for all customer classes this spring. All
changes, pending IPUC approval, will take effect June l.
Filing Small General Service
FCAl 3.700/o
Valmyl 0.10o/o
EE Riderl
Combined
!mpact2
-0.90o/o -0.910/o
2.84%2.89%
rPercentages shown as filed 2May not sum due to rounding
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.
Residential
3.640/o
o.110/o
2019 FCA REVENUE IMPACT BY CLA55
t)
c
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, ldaho Power still needs to recover
its fixed costs. Fixed costs include those associated with
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. ll 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.
Both scenarios have happened in the past. ln 2018, ldaho
Power collected less than the authorized fixed cost amount.
ln 2018, ldaho Power's energy efficiency programs saved an
incremental 183,378 megawatt hours - enough to power
almost 16,000 average-sized homes for an entire year.
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 optrons
for customers.
Opportunities for Public Review
ldaho Power's filing is a proposal 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), 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.
Thank you for reading this notice.
We value your business!
E Printed on recycled paperelln}{, PcLl,ER.
Alr IDACORP Company
@2019 ldaho Power
31 180-r-0028
@Er.[tJ_PC'I'I'ER.,
An IDACORP Company
NEWS RELEASE
Idaho Power Files Annual Fixed Cost Adjustment
BOISE, tdaho - On March 15, ldaho Power filed its annual Fixed Cost Adjustment (FCA) with
the ldaho Public Utilities Commission (IPUC). This year's FCA filing requests an increase of S19.2
million for Residential and Small GeneralService 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 Sg.+g increase to their monthly bill beginning June 1.
2019 FCA Revenue lmpact by Class
Percentage Change from Current Billed Rates
Residential Small General Service OverallChange
3.64%3.70%3.64%
The FCA changes are in addition to ldaho Power's February L2 filing to decrease ldaho Energy
Efficiency Rider collection percentage, and its March 8 filing requesting an increase in rates
associated with the company's exit from its North Valmy Plant. The Company also plans to file
its annual Power Cost Adjustment for all customer classes this spring. All changes, pending IPUC
approval, will take effect June L.
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,
ldaho Power still needs to recover its fixed costs. Fixed costs include those associated with
infrastructure - things like generation plants, power lines, substations and other equipment -
as well as certain administrative costs.
The FCAallows ldaho Powerto recoveran |PUC-authorized levelof fixed costs percustomer. 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. Both scenarios have happened in the past.
ln 20L8, ldaho Power's energy efficiency programs saved an incremental 183,378 megawatt
hours - enough to power almost 16,000 average-sized homes for an entire year.
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.
P.O. Box 70 (83707)
1221 W. ldaho St.
Boise, ID 83702
Opportunities for Public Review
ldaho Power's filing is a proposal subject to public review and approval by the IPUC. Copies of
the application are available to the public at the IPUC offices {1472 W. Washington St., Boise,
ldaho, 83702),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 energy
company that employs approximately 2,000 people who serve nearly 560,000 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 prices 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:Jordan Rodriguez
Communications Specialist
208-388-2460
irod [e-mail]
1-800-458-1443 media line