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Idaho Power Files Annual Power Cost Adjustment
April 14, 2023
BOISE, Idaho — Idaho Power has filed the final piece of its annual spring cost adjustments with the
Idaho Public Utilities Commission (IPUC). This year’s Power Cost Adjustment (PCA) calls for a price
increase as a result of higher power costs related to natural gas and market prices, lower than expected
hydro generation and a limited coal supply.
Neither Idaho Power nor its shareholders receive any financial return from this filing, which is a request
for $200.23 million. The money collected is used solely to recover expenses associated with annual
fluctuations in power supply costs.
“We understand times are tough for many, and we are sensitive to the impacts price increases have on
our customers,” said Ryan Adelman, Vice President of Power Supply. “Unfortunately, our power supply
costs were higher this past year because of continued drought conditions, high natural gas prices and
fuel supply challenges, and we must recover those costs to maintain the reliable service our customers
depend on. Despite these obstacles, we are working hard to keep our prices 20% to 30% lower than the
national average.”
Idaho Power previously filed the Fixed Cost Adjustment (FCA) on March 15. If approved, the FCA and
PCA rate changes will take effect June 1. A typical Idaho residential customer will see an overall monthly
increase of $11.06 — the combined impact of the following two filings:
The FCA, which is applicable only to residential and small commercial customers, adjusts prices
based on changes in energy use per customer during the previous year. For the average Idaho
residential customer using 950 kilowatt‐hours (kWh) of energy per month, this year’s FCA
requests a monthly bill decrease of $1.66.
The PCA is a cost‐recovery tool that passes on both the benefits and costs of supplying energy to
Idaho Power customers. This year’s PCA requests a monthly bill increase of $12.72 for the
average Idaho residential customer.
The impact of both filings for all Idaho customers is shown in the table below. The actual percentage will
depend on a customer’s classification and the rate they pay.
2023 RATE FILINGS
Percentage Change from Current Billed Revenue
Filing Revenue
Change
(millions)
Overall
Percentage
Impact
Residential Small
General
Service
Large
General
Service 1
Large Power
2
Irrigation
PCA $200.23 14.68% 11.90% 9.70% 16.19% 20.26% 15.01%
FCA ‐$9.98 ‐0.73% ‐1.56% ‐1.63% N/A N/A N/A
Combined
Impact 3
$190.26 13.94% 10.34% 8.08% 16.19% 20.26% 15.01%
1 Includes lighting schedules; 2 Includes special contracts; 3 Totals may not sum due to rounding
The PCA has two main components: a true‐up mechanism for power costs incurred the previous year
and an estimate of what energy will cost in the coming year. The true‐up brings last year’s anticipated
costs in balance with costs actually incurred the previous April through March. The estimate 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 increase in this year’s PCA is primarily due to last year’s actual power supply costs, which exceeded
the forecast, driven by lower‐than‐expected hydro generation, high natural gas prices, high market
prices and a limited coal supply. This year’s PCA forecast also reflects expected increased costs primarily
due to continued high natural gas and market prices and a limited coal supply.
Opportunities for Public Review
Idaho 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, ID
83714), Idaho 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
Idaho Power’s proposal (Case No. IPC‐E‐23‐12) may be filed with the IPUC.
About Idaho Power
Idaho Power, headquartered in vibrant and fast‐growing Boise, Idaho, has been a locally operated
energy company since 1916. Today, it serves a 24,000‐square‐mile area in Idaho and Oregon.
The company’s goal to provide 100% 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, Idaho Power’s residential, business and agricultural customers pay among
the nation’s lowest prices for electricity. Its 2,000 employees proudly serve more than 610,000
customers with a culture of safety first, integrity always and respect for all.
IDACORP Inc. (NYSE: IDA), Idaho Power’s independent publicly traded parent company, is also
headquartered in Boise, Idaho. To learn more, visit idahopower.com or idacorpinc.com.
Jordan Rodriguez
Communications Specialist
jrodriguez@idahopower.com
208‐388‐2460