20040406Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. PAC-04-
May 6, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Utah Power proposes reduction in BP A credits
Boise - Power rates for residential and small-farm customers ofPacifiCorp, which does business
as Utah Power in southeastern Idaho, would increase slightly if the Idaho Public Utilities
Commission approves the utility's application to reduce the size of the credit customers get from
the Bonneville Power Administration.
If the commission accepts Utah Power s proposal, residential customers would see a reduction in
the credit from 2.5 cents per kWh to 2.33 cents. Small-farm customers would see their credit
reduced from the current 4.24 cents per kWh to 3.93 cents.
The BP A markets electricity at cost from 31 federally owned dams as well as some non-federal
dams in the Northwest. 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 in the form of a credit to electric bills.
Utah Power claims that as of last September it had paid out $5.7 million more in BP A credits
than the company received from BP A.
After discussions with the Idaho Irrigation Pumpers Association and commission staff
PacifiCorp proposes to reduce that shortfall by one-third each year over a three-year period
resulting in a reduction of $1.9 million each year. That would eliminate the current shortfall. To
match the amount PacifiCorp credits its customers over the next three years with the amount it
projects to receive from BP A, the company proposes to reduce the credit an additional $597 000
during each ofthe three years. The total proposed annual reduction for the next three years
would be about $2.5 million.
The company maintains that by spreading the reduction over three years the impact on customers
would be eased.
The company is asking the commission to make the proposed reduction effective June 8 and
combine it with another rate adjustment it is seeking in a separate case. In that case, Utah Power
is asking that the commission extend by 16 months a power cost surcharge that expires on June
The net effect of extending the surcharge will decrease rates by an average 3.5 percent. If the
commission declines to extend the surcharge, rates would decrease an average 5 percent.
Utah Power seeks the extension to recover about $4.2 million. Most all ofthat 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 commission has preliminarily found that the public interest in this matter may not require a
hearing to consider the issues and that the matter be handled via a written comment period.
Comments will be accepted through May 20. Those wishing to submit comments can do so via
e-mail by accessing the commission s homepage at www.puc.state.id.and clicking on
Comments & Questions." Fill in the case number (IPC-02-04) and enter your comments.
Comments can also be mailed to P.O. Box 83720, Boise, ill 83720-0074 or faxed to (208) 334-
3762.
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