190429 PAC ECAM.pdf

Case No: PAC-E-19-04
Order No: 34313
Contact: Matt Evans
Office: [phone]
Cell: [phone]
[e-mail]
Rocky Mountain Power proposal would slightly
lower customer rates
BOISE (April 29, 2019) – The Idaho Public Utilities Commission is accepting written
comments on a Rocky Mountain Power proposal that would slightly decrease rates this
spring.
The company’s application to adjust its Energy Cost Adjustment mechanism (ECAM) calls
for a decrease of 0.01 percent for residential customers, effective June 1.
That equates to an annual savings of approximately 12 cents for the typical residential
customer using 800 kilowatt-hours per month.
In place for a decade, the ECAM allows Rocky Mountain to make a make a Commission-
approved rate adjustment each spring in order to account for the fluctuating nature of its
power-supply expenses.
Changes in market prices, transportation expenses, and expiring contracts with power
providers can make it difficult to project these expenses throughout the year.
Most of the power-supply expenses incurred by Rocky Mountain are included in base rates,
but the ECAM allows the company to recover power-supply expenses via a surcharge if the
expenses over the previous year exceeded the amount included in base rates.
In 2018, the company said, actual net power expenses exceeded the amount it recovered
from customers through the ECAM, but savings from the federal Tax Cuts and Jobs Act of
2017 offset the difference, prompting the company’s proposal to slightly decrease rates.
If approved by the Idaho Public Utilities Commission, the company’s proposal would
increase the revenue associated with the ECAM by $4.6 million. That equates to a rate
increase of 0.3 percent for residential customers.
However, the company would return to customers approximately $4.7 million in savings
related to the federal tax law.
The net effect is a rate decrease of 0.01 percent for residential customers, pending
Commission approval.
The Commission is accepting written comments on the proposal through May 14.
Go here to submit a comment in this case electronically. Please include the case number,
PAC-E-19-04. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or
faxed to [phone].
All documents filed in this case, including Rocky Mountain Power’s application, can be
accessed here. Or go to the Commission’s web site, www.puc.idaho.gov. Click on “Open
Cases” under the “Electric” heading and scroll down to case number PAC-E-19-04.