20020131Press Release.pdf

Commissioner Hansen:Page 1 of 2
Case No. PAC-O2-
Order No. 28946
IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release / Jan. 31 , 2002
Contact: Gene Fadness [phone]
BP A credit will result in average 44 percent reduction for Utah Power customers
BOISE - Residential customers ofPacifiCorp-Utah Power will seen an average reduction in their power
bills of 44 percent as the result of an agreement between the Bonneville Power Company and Utah Power that
was approved by the Idaho Public Utilities Commission today.
The BPA credit, which goes into effect Feb. 1 , also benefits small-farm customers of Pacific Corp, who
will see their bills go down by an average of 63 percent.
This reduction to residential customers will be a huge benefit in southeast Idaho where there are a lot of
total electric homes " said Commissioner Dennis Hansen. "It will also be a tremendous relief for farmers.
The BP A credit comes as a result of extensive negotiations between BP A and state commissions from
Idaho, Montana, Oregon and Washington.
The 1980 Northwest Power Act required that residential and small-farm customers in the Northwest share
in the benefits of the federal hydroelectric projects located in the region.
PacifiCorp s previous exchange agreement with BPA expired in 2001 , but a new settlement negotiated by
the state commissions and BP A is substantially higher than historical levels.
There were multiple negotiation sessions " said Paul Kjellander, president of the Idaho commission. "
are grateful that these benefits could come at a time that offsets some of the increases we ve seen " Kjellander
said.
The commission expressed its appreciation to BP A "for its acknowledgement that the benefits of the
federal Columbia River power system should be spread to all residents ofthe Pacific Northwest.
Utah Power has also filed an application with the commission to recover $38 million in power supply
costs the company incurred during the last two years. The company requests to recover the amount over two
years, $27 million in the first year and $11 million during the second. That, along with a proposal to adjust
customer rates to bring them closer to the actual cost of serving each customer class, is still under review by the
commission. Hearings will be conducted on those matters.
If the commission were to grant Utah Power recovery of the full requested amount, bills would still
http://www.puc.state.id.us/internetipress/0131 - BP Acreditfinal.htm 2/4/2002
Commissioner Hansen:Page 2 of2
average 8 percent lower than current amounts, according to the company.
http://www.puc.state.id.us/internetipress/0131 BP Acreditfinal.htm 2/412002