20100201News Release.pdf

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2010 FEB -I AM 9: 23
Rocky Mountain Power files request to track energy costs
BOISE, Monday, Feb. 1, 201u-Rocky Mountan Power has filed a request to begi
tracking fuel and other related costs of providing electrcity to Idao customers. The
metod, called an Energy Cost Adjustment Mechasm is the result of work with utilty
reguators and customer groups that began in October 2008.
The utilty's request, if approved by the commission, would increase residential electrc
bils 1.29 percent, or approximately 91 cents per month for a typical residential home
using 850 kilowatt-hour per month.
Rocky Mountain Power has been workig with the staff of Idao Public Utilties
Commssion and Idaho customer groups to design a mechansm to recover cert costs
of providing electrcity to customers in Idao. The Energy Cost Adjustment Mechasm
includes the cost of coal, natu gas and electrcity purchaed on the wholesae market.
Any revenue the company realizes from electrcity or natu gas sales on the wholesale
market and emissions trading credit sales are credited to customers. These are the major
components of the company's net power costs.
Based on an evaluation each year, if net power costs are higher than those set in the most
recent general rate case, the company collects the difference though commssion
approval of the adjustment mechansm application and a line-item on customer bils. If
costs are lower, the company credits customers on bils. In the curnt filing, net power
costs have been higher than those curently in rates.
"Fuel and purchased electrcity costs are a large portion of the costs of providing electrc
service to customers and tend to var rapidly up and down," said Karen Gilmore, vice
president of Rocky Mounta Power. "Ths mechansm allows the company to either
collect rising costs or credit declining costs back to customers more quickly and
effciently than going though a ful general rate case."
The Idao Public Utilities Commssion wil study the company's request durg the
comig months and must approve the proposed changes before they can tae effect. The
public will have opportty to comment on the proposal. A copy of the company's
application is available for public review at the commission offces in Boise and at the
company's offces in Rexburg, Preston, Shelley and Montplier.
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