160224_RMPcharges.pdf

Case No. PAC-E-16-05, Order No. 33467; Case No. PAC-E-16-02, Order No. 33468
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Rocky Mountain proposes two rate adjustments

BOISE (Feb. 24, 2016) – The Idaho Public Utilities Commission is taking comment on two Rocky
Mountain Power applications, one that proposes to increase rates slightly and another that
would decrease rates by about the same amount.

Rocky Mountain Power proposes that its annual Energy Cost Adjustment Mechanism (ECAM) be
a slight decrease to customers of about 0.7 percent, or about 58 cents on an average residential
monthly bill.

The utility, which serves about 73,000 customers in eastern Idaho, is also seeking a 0.6 percent
increase to its Customer Efficiency Services Rate from the current 2.1 percent of the monthly
billed amount to 2.7 percent.

Energy Cost Adjustment Mechanism

Rates for Rocky Mountain customers are adjusted either up or down every April 1 to account
for power supply expense that varies from year to year depending on the previous year’s fuel
costs, surplus power sales, power purchases and the market price of power.

If variable costs are higher than what is already included in base rates, customers get a one-
year surcharge; if they are lower, customers get a one-year credit. For the 12-month period
ending Nov. 30, 2015, Rocky Mountain’s net power supply costs were $9.3 million less than that
included in base rates, resulting in a rate credit to customers.

Customer Energy Efficiency Services

Rocky Mountain invests in a number of programs that either shift consumption to off-peak
hours (demand response) or reduce consumption (energy efficiency). Funding for those
programs is collected from the Energy Efficiency Services line item on customer bills.
Expenditures for the programs increased by about 38 percent from $3.2 million in 2014 to $4.4
million in 2015 due to increased customer participation. Savings from energy efficiency
programs increased from 11,410 megawatt-hours in 2014 to about 15,440 MWh in 2016.

Customers benefit in two ways from the programs. Participating customers benefit from lower
bills by taking part in the programs. Customers who do not participate also benefit because the
cost of the electricity saved is about half of what it would cost Rocky Mountain to generate or
buy the same amount of energy.

Neither of these applications increase company earnings. Money collected in the ECAM or
from the energy efficiency rider must go directly toward the deferred accounts established for
each program.

The commission is taking public comment through March 10 on the proposed ECAM decrease
and through March 16 on the proposed efficiency services increase. Comments are accepted
via e-mail by accessing the commission’s website at www.puc.idaho.gov and clicking on "Case
Comment Form,” under the “Consumers” heading. Fill in the case number (PAC-E-16-05 for the
ECAM and PAC-E-16-02 for the Energy Efficiency Services charge) and enter your comments.
Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-
3762.

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