20050125Bill Insert.pdf

825 E. Multnomah St.
Portland, OR 97232
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PACIFICORP
January 24, 2005
Idaho Public Utilities Commission
472 West Washington
Boise, ill 83702-5983
Attention:Jean D. Jewell
Commission Secretary
RE: Case No. PAC-05-
Enclosed for the Commission s files in connection with the above-referenced Application is a
copy of the customer notice. This form of notice is being included as in insert with each
customer s bill in the current billing cycle, commencing as of Monday, January 24. Also
enclosed for the Commission s files is a copy of the press release which was issued by the
Company on January 14, 2005 , contemporaneously with the filing of the Application.
Sincerely,
D. Daub.5 L..r::5P
Enclosures
Q9936 use 220506
Proud Sponsor of the
2002/2004 US Olympic Team
UTAH POWER
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January 14 2005For information, contact:
David Eskelsen 801-220-2447
Media Hotline [phone]
Utah Power requests rate increase for Idaho customers
BOISE-Utah Power has filed a request before the Idaho Public Utilities Commission
(IPUC) for an increase in rates of$15.1 million or 12.5 percent, citing substantially
increased costs, plus continuing investment to serve the growing needs of Idaho
customers. The company has not had an increase to its base rates since 1986.
Utah Power has proposed that new rates take effect Sept. 16 , 2005. Because surcharges
previously approved by the IPUC are set to expire on that date, the net effect of this
increase would be $11.4 million or 9.2 percent overall. For a typical residential customer
using 700 kilowatt-hours, the proposed increase would be $5.63 per month.
The costs of providing electricity to Idaho customers are increasing," said John Stewart
Managing Director of Regulation. "No one likes rate increases, but the plain facts are the
cost of providing electric service is going up. Still, even with this increase, rates for Idaho
customers on average will still be among the lowest in the nation.
Under the company s request, rates would increase on average 6.8 percent for
commercial customers; 6.1 percent for industrial customers; and 0.4 percent for
irrigation customers. These percentage changes do not include the effect of energy
discounts provided by the Bonneville Power Administration to residential, small farm and
irrigation customers. The ultimate effect on residential and other rate classes will not be
known until the final commission order is issued.
Since 1986, Utah Power and the utility industry have experienced significant changes
that combine to require an adjustment to general customer rates " Stewart said.
A variety of specific issues combine to require new rates, including: increasing costs
associated with generation resource additions, employee related costs, and general
inflation impacts.
We believe we ve done an excellent job of controlling costs in recent years. Utah Power
has not received an increase to its base rates since 1986 " Stewart said.
-more-
Utah Power rate increase request
As part of the case, the company is requesting that its allowed rate of return on equity, or
common stock, be set at 11.125 percent. Return on equity (ROE) is an upper limit set by
the IPUC based on a variety of financial factors. It is not a guarantee; the company has an
opportunity to earn up to the set amount.
The case by law can take up to eight months to complete, with an exhaustive analysis of
Utah Power s financial results, and hearings before the commission.
Copies of the filing will be available online at www.pacificorp.com. Click on "News and
Info" and then select "Regulatory Information" and "Idaho." As well, a copy of the filing
can be reviewed during regular business hours at the IPUC office in Boise; and in these
Utah Power offices:
200 North 170 West, Rexburg
509 South 200 East, Preston
852 E. 1400 North, Shelley
24852 U.S. Highway 89, Montpelier
Utah Power serves 61 400 customers in Idaho and is part ofPacifiCorp, which serves 1.6
million customers in Utah, Oregon, Washington, Wyoming, Idaho and California.
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Notice of Proposed Price Change
Utah Power has filed a general rate case proposing an
overall price increase of $15.1 million, or 12.5 percent, to
become effective September 16, 2005. Because this price
increase would become effective on the same day the
current Power Cost/Tax Surcharge currently appearing on
customer bills ends, the net overall impact of the proposed
price increase would be $11.4 million or 9.2 percent.
The Company filed the rate case application with
the Idaho Public Utilities Commission (IPUC) on
January 14, 2005. The application is a proposal, subject
to public review and a Commission decision before it
can take effect.
If the company proposal is approved as filed, the net
residential price increase would average 9.6 percent.
For a typical residential customer using 700 kilowatt-
hours, the proposed increase would average $5.63 per
month. On average, rates would also increase 6.8 percent
for commercial customers, 6.1 percent for industrial
customers and 10.4 percent for irrigation customers.
These percentage changes do not include the effect
the BPA energy discount.
Utah Power has not received an increase to its base rates
since 1986. The proposed rate increase is necessary to
cover increasing costs associated with generation
resource additions, employee related costs and general
inflation impacts.
Copies of the filing will be available online at
www.utahpower.net click on "News" and then select
Rates & Regulation" and "Idaho." Or, you can review a
copy during regular business hours at the IPUC office in
Boise; and in these Utah Power offices:
200 North 170 West, Rexburg
509 South 200 East, Preston
852 E. 1400 North, Shelley
24852 U.S. Highway 89, Montpelier
. UTAH POWER