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HomeMy WebLinkAbout20220415Customer Notice and Press Release.pdf-ETDFffi.NEWSRELEASE ldaho Power Files Annual Power Cost Adjustment Aprilt5,2022 BOISE, ldaho - ldaho Power has filed the final piece of its annual spring cost adjustments with the ldaho Public Utilities Commission (IPUC). This yea/s Power Cost Adjustment (PCA) calls for a price increase across all customer classes as a result of higher power costs related to last summe/s unprecedented heatwave and lower hydro generation because of drought conditions. Neither ldaho Power nor its shareholders receive any financial return from this filing, which is a request for StOg.+ million. The money collected is used solely to recover expenses associated with annual fluctuations in power costs. "We are sensitive to the impacts rate increases have on our customers and work hard to serye our growing number of customers with prices that remain 20%to 30% lower than the rest of the nation," said Ryan Adelman, Vice President for Power Supply. "Unfortunately, the drought and last summe/s record heatwave resulted in higher-than-expected overall power supply costs. Recovering these costs helps us maintain the reliable service our customers depend on." The overall impact to residential customer bills on June 1 depends on the outcome of three filings: The annual PCA, filed today, 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 56.54 increase on their bill related to this request. The annual Fixed Cost Adjustment (FCA), filed in March and applicable to only residential and small commercial customers, adjusts prices based on changes in energy use per customer during the previous year. lf the FCA proposal is approved as filed, a typical tdaho residential customer will see a 50.81 decrease on their bill related to this request. a a a ldaho Power has requested a price increase to collect the cost of an accelerated depreciation schedule for all coal-related investments at the Jim Bridger Power Plant in Wyoming. lf approved as filed, a typical ldaho residential customer will see a 52.07 increase on their bill related to this request. The impact of these three filings for all ldaho customers is shown in the table below. A typical ldaho residential customer will see an overall monthly increase of 57.80. The actual percentage of change will depend on a custome/s classification and the rate they pay. 2022 RATE FITINGS Percentoge Chonge from Current Billed Revenue Filing Overall Percentage lmpact Residential Small General Service Large General Service r Large Power 2 lrrigation PCA3 8.27%6.550,/0 5.24%9.18%L2.LOo/o 8.46% FCA -0.39%-O.8lo/o -o.82%N/A N/A N/A Bridger 2.17%2.O8%L.99%2.24%2.23%2.30% Combined lmpact c LO.OSYo 7.82%6.4L%tt.43%L4.33%10.7s% r lncludes lighting schedules; z lncludes special contracts; r lncludes revenue sharing;rTotals may not sum due to rounding The PCA has two main components: the forecast and the backward-looking balancing adjustment. The forecast reflects ldaho Powe/s anticipated fuel costs, purchased power costs and customer benefits from sales of surplus energy for the coming April through March. The balancing adjustment brings last yea/s forecasted costs in balance with costs actually incurred by ldaho Power by looking back at what happened the previous Aprilthrough March. The increase in this yea/s PCA is attributed to last year's actual power supply costs, which exceeded the forecast, driven by lower-than-expected hydro generation, high natural gas prices and high market prices. ldaho Power experienced higher power costs than it has in the past due to the record-setting heat wave of summer 2021, during which the company exceeded its previous al!-time peak load for five consecutive days. This yea/s PCA forecast also reflects expected increases to costs primarily due to continued drought conditions, which would result in less low-cost hydro generation available to serve customers, and higher costs associated with power purchase agreements under the Public Utility Regulotory Policies Act of 7978 (PURPA). Opportunities for Public Review ldaho Powe/s proposal is subject to public review and approval by the IPUC. Copies of the application are available to the public at the IPUC offices (11331W. Chinden Blvd. Building 8, Suite IOL-A, Boise, lD 837L4l,ldaho Power offices, or at idahopower.com or puc.idaho.sov. 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 proposal 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 1915. Today, it serves a 24,000-square-mile area in ldaho and Oregon. The company's goalto provide 100% clean energy by 2O45 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 mlf ldaho Power's residential, business and agricuhural customers pay among the nation's lowest prices for electricity. lts 2,000 employees proudly sen/e more than 500,000 customers with a culture of safety first, integrity always and respect for all. IDACORP lnc. (NYSE: !DA), ldaho Powe/s independent publlcly traded parent company, is also headquarteredinBoise,ldaho.Tolearnmore,visit!g[!9ryor!di!@. Jordan Rodriguez Communications Specialist irod risuez@ ida hooower.com 208-388-2460 stmlpPo,lrER 1,. l-ricoRP c.nrr.tr. Opportunities for Public Review ldaho Power's proposal is subject to public review and approval by the IPUC. Copies of the application are available to the public at the IPUC offices (11331 W. Chinden Blvd. Building 8, Suite 201-A, Boise, lD 83714),ldaho Power offices, or at idahopower.com or 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 proposal may be filed with the IPUC. Thank you for reading this notice. We value your business. sllmroP0i,ER. An IDACORP Company $ Printed on recyded paper. ldaho Power Files Annual Power Cost Adjustment ldaho Power has filed the final piece of its annual spring cost adjustments with the ldaho Public Utilities Commission (IPUC). This year's Power Cost Adjustment (PCA) calls for a price increase across all customer classes as a result of higher power costs related to last summer's unprecedented heatwave and lower hydro generation because of drought conditions. Neither ldaho Power nor its shareholders receive any financial return from this filing, which is a request for $103.4 million. The money collected is used solely to recover expenses associated with annual fluctuations in power costs. 02022 ldaho Power 31 t80-l-0178 The overall impact to residential customer bills on June 1 depends on the outcome of three filings: o The annual PCA, filed today, 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 $6.54 increase on their bill related to this request. . The annual Fixed Cost Adjustment (FCA), filed in March and applicable to only residential and small commercial customers, adjusts prices based on changes in energy use per customer during the previous year. lf the FCA proposal is approved as filed, a typical ldaho residential customer will see a $0.81 decrease on their bill related to this request. . ldaho Power has requested a price increase to collect the cost of an accelerated depreciation schedule for all coal-related investments at the Jim Bridger Power Plant in Wyoming. lf approved as filed, a typical ldaho residential customer will see a $2.07 increase on their bill related to this request. The impact of these three filings for all ldaho customers is shown in the table below. A typical ldaho residential customer will see an overall monthly increase of $7.80. The actual percentage of change will depend on a customer's classification and the rate they pay. lrrigation 8.27o/o 6.550/o 5.240/o 9.18o/o 12.10o/o 8.460/0 -0.39o/o -0.81%-0.82o/o N/A N/A N/A 2.17%2.08o/o 1.99%2.24o/o 2.23o/o 2.30Yo 10.05Yo 7.82%6.410h 11,430/o 14.33%1O.75o/o I lncludes lighting schedules;2 lncludes special contracts;3 lncludes revenue sharing; { Totals may not sum due to rounding The PCA has two main components: the forecast and the backward-looking balancing adjustment. 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 balancing adjustment brings last year's forecasted costs in balance with costs actually incurred by ldaho Power by looking back at what happened the previous April through March. The increase in this year's PCA is attributed to last year's actual power supply costs, which exceeded the forecast, driven by lower-than-expected hydro generation, high natural gas prices and high market prices. ldaho Power experienced higher power costs than it has in the past due to the record-setting heat wave of summer 2021, during which the company exceeded its previous all-time peak load for five consecutive days. This year's PCA forecast also reflects expected increases to costs primarily due to continued drought conditions, which would result in less low-cost hydro generation available to serve customers, and higher costs associated with power purchase agreements under the Public Utility Regulatory Policies Act of 7978 (PURPA). Overall Percentagelmp.d Reridcntial Small Gen.ral Servi(€ Iargc Gcneral Seruicel [a]ge Powerr 2022 RATE FILINGS PERCENTAGE CHANGE FROM CURRENT B{LLED POWER COST ADJUSMENT (PCA)] FIXED COST ADJUSMENT (FCA) BRIDGER COMBINED IMPACT4 bltLid.l 6.55%5.24o/o 9.18% 12.10% -0.39%-0.81%-0.82o/o N/A N/A 202 ) RA1 t_ I luIJGS PERCENTAGE (HANGE FROM CURR€I.JT BILLED REVENUE POWER COST AD,USMENT (PCA} =st[nHo PourER Idaho Power Files Annual Power Cost stment ,j,r'. ldaho Por\/er has filed the fhEl piece of its annual sprhg co6t adjustments with the ldaho Public LJtilities Commision (IPUC). This year's Power Cost Adjustment (PCA) calls for a price increase across all customer classes as a result of higher power costs related to last summer's unprecedented heatw'ave and lower hydro generation because of drought conditions. tleither Haho Fot/v€r nor its stwetdders rreive any financial retrm from this f0n9 which is a request for 11034 mfion. The money colecEd b used edely b recorerexperEes asociated with annual flucfuatiom in po,ver@sts, The overall impact to residential customer bills on June 1 depends on the outorn of three filing: . Ihe annual PCA, filed today, b a cost-reco!€ry tool that passes on bo$ the bene{its and costs of supplying energy to ldaho Poarcr custorners. lf the PCA proposal is approrcd by the IPUC as filed, the typiol ldaho residential customer using 950 kilor\ratt-hours (kwh) of energy per month will see a t6.54 increase on their bill related to this requ6t. . The annual Fved Cost Adjustment (FCA), filed in March and applicable to only residential and small commercial cusbmers, adjusts prices based on changes in energy use per cusbmer during the prwious year. lf the rcA proposal is appror,ed as fihd, a tpical ldaho rcsidential customer willsee a i0.81 decrease on their bill related to this request. . ldaho Poiver has requested a price increase to collect the cost of an accelerated depreciation schedule for all coal-related invEtments at tle Jim Bddge Forver Plant in VWomirE. lf appocd as filed, a tnical ldaho residential customer will see a $2.07 increase on their bill related to this request. Thc lmpect of tho* ftno filingr for d Hrho customers is shown in the table belor. A typical ldaho residential customer will see an orerall monthly increase of $7.80. The actual percentage of change will depend on a ormrnr's dasificatirn and the rate they pay. t lriFi 8.270h A.46o/0 2.17o/o 2.080/o 1.99o/o 2.24% 2.23o/o 2.300h lighting 5chedules;, ln(lude5 spe(ial contracts; i ln(ludes revenue Totals may nol rum due to roundlng Contirud on rewrc side I r0.0r* i 4ql i .!q j !illt ; tl{t* i !.15* 'ln(ludes!haiing;' N/A PRI-9ONTED STANDARD U,S, POSTAGE PAID BOI5E, ID P€NMIT NO, 679 ldaho Power Files Annual Power Cost Adjustment Continued frcm rcve6e side The PCA has two marn components: the forecast and the backwardlooking balancing adjustment. 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 balancing adjustment brings last year's forecasted costs in balance with costs actually incuned by ldaho Power by looking back at what happened the previous April through March. The increase in this year's PCA is attributed to last year's actual power supply costs, which exceeded the forecast, driven by lower-than-expected hydro generation, high natural gas prices and high market prices. ldaho Power experienced higher power costs than it has in the past due to the record- setting heat wave of summer 2021, during which the company exceeded its previous all-time peak load for five consecutive days. sllorypPo,l,ER. This year's PCA forecast also reflects expected increases to costs primarily due to continued drought conditions, which would result in less low-cost hydro generation available to serve customers, and higher costs assocjated with power purchase agreements under the Publk Wility Reguhtory Policies Act of 7918 (PURPA). Opportunities for Public Review ldaho Power's proposal is subject to public review and approval by the IPUC. Copies of the application are available to the public at the IPUC offices (11331 W. Chinden Blvd. Building 8, Suite 201-A, Boise, lD 83714), ldaho Power offices, or at idahopower,com or puc.idaho.gov. Customers also may subscribe to the IPUC'5 RSS feed to recei!,e periodic updates via email about the case. Written comments regarding ldaho Power's proposal may be filed with the IPUC. Thank you for reading this notice. We value your busrhess. lmoortantlnformation: An IDACORP Companv P.O. Box 70 (83707) l22l W. ldaho 5t. Boise, lD 83702 Please Note: We want to ensure all of our ct.stomers ha,e sufficient timebs.6rnit @mmentsto tle lruC. Because your bill is processed toward the end of the IPUC's review of our request, you will receive this notilkation twice: fi6t in tis pocftcard and then in an insert in your bill later this month.