20050203Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. PAC-05-, Order No. 29703
February 3, 2005
Contact: Gene Fadness [phone]
Website: www.puc.idaho.2ov
IPUC begins examination of PacifiCorp rate case
Boise - Feb. 23 is the deadline for parties who want to formally intervene in PacifiCorp s rate
case before the Idaho Public Utilities Commission.
On Jan. 15 , PacifiCorp, which does business as Utah Power in southeastern Idaho, applied to the
commission for an average 12.5 percent rate increase to be effective by Sept. 16. Because
surcharges expire on that same date, the net effect is an average increase of 9.2 percent
according to the company.
Intervenors are parties representing PacifiCorp customers who want to participate in the case by
presenting and receiving evidence, cross-examining witnesses , participating in settlement and
negotiation conferences and making and arguing motions. The Irrigation Pumpers Association
and Monsanto have already filed for intervention status.
The commission will also provide a number of opportunities for participation by the general
public through workshops, hearings and written comment periods. Dates for those events as well
as deadlines for written comments will be announced shortly.
The commission s staff of attorneys, auditors and engineers has already begun a thorough
examination of the company s proposal, a process that can take six months or more. The
commission is free to accept, reject or modify the company s proposal.
If approved, the rate hike would increase annual revenues by $15.1 million. The company claims
the additional revenue is needed to meet expenses caused by inflation; employee pensions and
health care; and investments in new generation. The company is asking to earn a return on equity
of up to 11.125 percent. It is currently earning an ROE of 5.8 percent. The company has not had
an adjustment to its ROE or existing base rate structure since 1986.
Not accounting for the expiration of the surcharge, the average increase, if approved, for
residential customers would be 14.9 percent. For residential customers who use time-of-day
metering, the average increase would be 10.9 percent. The proposed increase for small
commercial customers is 13.5 percent and for irrigation customers , 13.6 percent.
The company s application can be viewed on the commission s Web page at
www.puc.idaho.gov. Click on "PacifiCorp rate case" under "Hot Items" on the top right-hand
comer of the page. Copies of the application are also available at commission headquarters at
472 W. Washington S1. in Boise and at company offices in Rexburg, Preston, Shelley and
Montpelier.