20230614Idaho Power Press Release June 14.pdf

Case No. IPC-E-23-09
Order No. 35799
Case No. IPC-E-23-12
Order No. 35804
Contact: Adam Rush
Office: [phone]
E-mail: [e-mail]

NEWS RELEASE: Commission approves Idaho Power applications that will change rates

BOISE (June 2, 2023) – The Idaho Public Utilities Commission has approved two Idaho Power
applications that will change customer rates.

The utility received approval for its power cost adjustment (PCA) rates and fixed cost adjustment
(FCA) rates.

The PCA allows Idaho Power to increase or decrease the PCA rates to reflect the utility’s annual
costs of supplying power. Because of a diverse generation portfolio, Idaho Power’s actual costs
of providing electricity varies annually depending on factors such as river streamflow, the
amount of purchased power, fuel costs, and the market price of power, among other factors. The
annual PCA is combined with Idaho Power’s base rates to create a customer’s overall energy
rate. The PCA can only be used to pay power supply expenses. Neither Idaho Power or its
shareholders receive a financial return from the PCA.

To assist customers, this year’s PCA will be spread equally over two years to mitigate impacts
on customers. For the average residential customer using 950 kilowatt-hours per month, the
expected increase is approximately $6.68 per month.

The FCA annually adjusts rates up or down to recover the difference between the fixed costs
authorized by the commission and the actual fixed costs Idaho Power recovers from customers
for the sale of electricity during the previous year. Fixed costs are a utility’s costs to provide
service that do not vary with fluctuations in energy consumption. Variable costs change based on
the energy generated and consumed. The FCA applies to residential and small commercial
customers.

A typical residential customer using 950 kilowatt-hours per month will see an approximate $1.66
decrease in their monthly bill from June 1, 2023, through May 31, 2024. This represents a 1.56
percent decrease. This decrease also will apply to small general service customers for the same
timeframe.

Accounting for the PCA and FCA, residential customers will see an increase of 4.69 percent,
small general service customers will see an increase of 3.48 percent, large general service
customers will see an increase of 8.50 percent, large power customers will see an increase of
10.63 percent and irrigation customers will see an increase of 7.88 percent. A typical residential
customer will see an overall monthly increase of $5.02 between the two filings.

Additional information is available at puc.idaho.gov/case/Details/7002 and
puc.idaho.gov/case/Details/7028.