20190415Customer Notice and Press Release.pdf

idaho Public Utilities Commission
Office of the SecretarvRECEIVED
APRr520rs relmlpPo,lrER"
Boise, ldaho
An lDAcoRP com'an,
NEWS RELEASE
ldaho Power Proposes Rate Decrease in Power Cost Adjustment Filing
April 15,2019
BOISE, ldaho - ldaho Power has filed the final piece of its spring cost adjustments with the ldaho Public
Utilities Commission (IPUC). This year's Power Cost Adjustment (PCA) calls for a rate decrease of S50
million across all customer classes.
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 would see a 53.35 decrease on their monthly bill related
to this specific request, beginning June 1. However, the overall impact to customer bills is dependent on
the outcome of four recent filings, not just the PCA. lf all filings are approved by the IPUC as requested,
the typical residential customer will have a combined decrease of 50.59 per month. These are the four
recent filings:
The annual PCA is a cost-recovery tool that passes on both the benefits and costs of supplying
energy to ldaho Power customers.
The annual Fixed Cost Adiustment (FCA). filed in March, adjusts prices based on changes in
energy use per customer during the previous year.
This year, ldaho Power also filed a rate adjustment to recover costs related to ldaho Power's
planned exit from the North Valmv power plant (Valmv).
This year, ldaho Power also requested a downward adjustment to the ldaho Enerev Efficiencv
Bider (EE Rider).
The impact of all filings for all customer classes is shown below. The actual percentage of change will
depend on a customer's class and the rate they pay.
1 lncludes lighting schedules; 2 lncludes special contracts; 3 Totals may not add up exactly due to
rounding
PO. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
a
a
a
a
2019 RATE FITINGS
Percentoge Change from Current Billed Revenue
Filing Residential SmallGeneral
Service
Large General
Service 1
Large Power 2 lrrigation
EE Rider -O.9OYo -o.9L%-o.97%-o.89%-o.91%
Valmy O.7to/o 0.10%O.l7o/o o.L1%o.77%
FCA 3.64%3.70%N/A N/A N/A
PCA -3.49%-2.79%-4.75%-6.29%-4.33%
COMBINED
IMPACT3
-o.65%o.70%-5.55%-7.06%-5.1,3%
This is the second consecutive year that residential customers will see an overall price decrease on their
bills. On top of that, three classes of business customers, including irrigators, will see more than a 5%
decrease on their bills. Overall, ldaho Power prices are about 20% lower than the national average.
The PCA has two main components: the forecast and the true-up. The forecast looks ahead to 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.
These are the 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 and benefits from lower than expected natural gas costs. Additionally, forecast power
supply costs for the coming April through March are less than last year's forecast, primarily due to an
anticipated increase in sales of surplus energy, which benefits customers as an offset to other power
costs.
The 2019 PCA adjustment also includes revenue sharing and tax reform changes:o lncluded in this year's PCA rates, customers will receive a 55 million revenue sharing credit.
Since 2009, customers have received more than S125 million in revenue sharing benefits.o Additionally, last year's PCA rate included a Sz.S million tax reform benefit to be credited to
customers June 1, 2018 through May 3L,2OL9. This year, that credit amount changes lo 52.7
million starting June 1.
The PCA is an annual adjustment mechanism that allows ldaho Power to either recover costs or credit
benefits associated with annual fluctuations in power costs. These typically represent approximately
one-fourth to one-third of the company's annual cost of serving customers.
Opportunities for Public Review
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 vibrant and fast-growing Boise, ldaho, has been a locally operated
energy company since 1916. Today, it serves a 24,000-square-mile area in ldaho and Oregon. The
company's goal to provide lOO-percent clean energy by 2045 builds on its long history as a clean-energy
leader that provides reliable service at affordable prices. With 17 low-cost hydroelectric projects at the
core of its diverse energy mix, ldaho Powe/s residential, business and agricultural customers pay among
the nation's lowest prices for electricity. lts 2,000 employees proudly serve more than 550,000
customers with a culture of safety first, integrity always and respect for all.
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.
Jordan Rodriguez
Communications Specialist
jrod riguez@ ida hopower.com
208-388-2460
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 tPUC.
Thank you for reading this notice.
We value your business!
=IMIOPCT'I'ER"
(D Printed on recycled paper.
On April 15, ldaho Power filed the final piece of its
spring cost adjustments with the ldaho Public Utilities
Commission (IPUC). This year's Power Cost Adjustment
(PCA) calls for a rate decrease of $50 million across all
customer classes.
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 would see a $3.35
decrease on their monthly bill related to this specific
request, beginning June 1. However, the overall impact
to customer bills is dependent on the outcome of four
recent filings, not just the PCA. lf all filings are approved
by the IPUC as requested, the typical residential customer
will have a combined decrease of $0.59 per month.
These are the four recent filings:
. The annual PCA is a cost-recovery tool that passes on
both the benefits and costs of supplying energy to
ldaho Power customers.
. The annual Fixed Cost Adjustment (FCA), filed in
March, adjusts prices based on changes in energy use
per customer during the previous year.
. This year, ldaho Power also filed a rate adjustment to
recover costs related to ldaho Power's planned exit
from the North Valmy pbwer plant (Valmy).
. This year, ldaho Power also requested a downward
adjustment to the ldaho Energy Efficiency Rider
(EE Rider).
SIIMIOPO'I'ER.
An IDACORP Company
@2019 ldaho Power
31 180-r-0033 An IDACORP Company
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ldaho Power Proposes
Rate Decrease in
Power Cost Adjustment Filing
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The impact of all filings for all customer
classes is shown below. The actual percentage
of change will depend on a customer's class and the rate
they pay.
Small General
Service
These are the 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 and benefits from lower than expected natural
gas costs. Additionally, forecast power supply costs for
the coming April through March are less than last year's
forecast, primarily due to an anticipated increase in sales
of surplus energy, which benefits customers as an offset
to other power costs.
The 2019 PCA adjustment also includes
revenue sharing and tax reform changes:
. lncluded in this year's PCA rates, customers will
receive a $5 million revenue sharing credit. Since 2009,
customers have received more than $126 million in
revenue sharing benef its.
. Additionally, last year's PCA rate included a $7.8 million
tax reform benefit to be credited to customers iune
1,2018 through May 31, 2019. This year, that credit
amount changes to $2.7 million starting June 1.
The PCA is an annual adjustment mechanism that allows
ldaho Power to either recover costs or credit benefits
associated with annual fluctuations in power costs. These
typically represent approximately one-fourth to one-third
of the company's annual cost of serving customers.
Reridential lrrigation
-0.90% -0.91o/o -0.91o/o -0.89o/o -091%
O.11o/o 0.10% 0.11o/o 0.11%0.11%
3.540/o 3.70% N/A N/A N/A
-4.33o/o
-5.13o/"
' lncludes lighting schedules;2 lncludes special contracts;I Totals may not add up exactly due to rounding
This is the second consecutive year that residential
customers will see an overall price decrease on their
bills. On top of that, three classes of business customers,
including irrigators, will see more than a 57o decrease
on their bills. Overall, ldaho Power prices are about 20%
lower than the national average.
The PCA has two main components: the forecast and
the true-up. The forecast looks ahead to 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.
l-arge
General
servicel
2019 RATE FILINGS
-3.49%4.7 5o/o-2.79o/o -5.29o/o
POWER COST ADJUSMENT (PCA}
'0.650/o 0.10%-5.55%-7.060/o
COMBINED IMPACTs
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