20040324Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. P AC-03-
March 24, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
IPUC staff plans Preston, Rexburg workshops
Boise - Staff from the Idaho Public Utilities Commission will conduct public workshops in
Preston and Rexburg regarding PacifiCorp s request to extend by 16 months a power cost
surcharge that expires on June 8.
The net effect of extending the surcharge will actually decrease rates by an average 3.5 percent.
If the commission declines to extend the surcharge, rates would decrease an average 5 percent.
The power cost surcharge that expires in June was a two-year surcharge added to customer bills
in June of 2002. The surcharge was to collect $22.7 million the company owed other power
suppliers as a result of the 2000-01 Western energy crisis that resulted in unprecedented
increases in the wholesale cost of power.
PacifiCorp seeks the extension to recover about $4.2 million. Most all of that amount is Idaho
portion of income tax payments the company made following an IRS audit of the company
2002 and 2003 income tax statements. The remaining amount - about $200 000 - is for a
projected under collection of power surcharge costs through June of this year.
The company claims the commission has allowed recovery for audit-related payments as a
legitimate cost of doing business, as long the taxes were not paid from a reserve account already
funded by ratepayers.
The first year of the surcharge added about .858 of a cent per kWh to a residential bill. The
surcharge for this year, the second year, is .42 of a cent per kWh. The extended surcharge, if
granted, would add about .257 of a cent to a residential bill, resulting in a net decrease in overall
rates of about 3.3 percent for residential customers, 3.5 percent for commercial and industrial
customers and 3.6 percent for irrigation customers.
The commission has determined that public hearings may not be required for this case, but will
accept written comments from customers through April 30. While formal hearings are not
scheduled, commission staff will conduct workshops to give customers an opportunity to hear
from commission staff and ask questions.
The first workshop will be Wednesday, April 21 , at 7 p.m. at the Robinson Building, 186 W.
Second North in Preston. The second workshop is Thursday, April 22, at 7 p.m. at the Best
Western CottonTree Inn, 450 W. Fourth South in Rexburg.
Persons wishing to submit comments can do so via e-mail by accessing the commission
homepage at www.puc.state.id.and clicking on "Comments & Questions." Fill in the case
number (PAC-03-5) and enter your ~omments. Comments can also be mailed to P.O. Box
83720, Boise, ill 83720-0074 or faxed to [phone].
A complete copy of the company s application and supporting documents are available on the
commission s Web site. Click on "File Room" and then on "Electric Cases" and scroll down to
Case No. PAC-03-
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