BOISE, Idaho — Idaho Power has filed the final piece of its annual spring cost adjustments with the Idaho Public Utilities Commission (IPUC). This year’s Power Cost Adjustment (PCA) calls for a price increase across all customer classes as a result of higher power costs related to last summer’s unprecedented heatwave and lower hydro generation because of drought conditions.
Neither Idaho Power nor its shareholders receive any financial return from this filing, which is a request for $103.4 million. The money collected is used solely to recover expenses associated with annual fluctuations in power costs.
“We are sensitive to the impacts rate increases have on our customers and work hard to serve our growing number of customers with prices that remain 20% to 30% lower than the rest of the nation,” said Ryan Adelman, Vice President of Power Supply. “Unfortunately, the drought and last summer’s record heatwave resulted in higher-than-expected overall power supply costs. Recovering these costs helps us maintain the reliable service our customers depend on.”
The overall impact to residential customer bills on June 1 depends on the outcome of three filings:
- The annual PCA, filed today, is a cost-recovery tool that passes on both the benefits and costs of supplying energy to Idaho Power customers. If the PCA proposal is approved by the IPUC as filed, the typical Idaho residential customer using 950 kilowatt-hours (kWh) of energy per month will see a $6.54 increase on their bill related to this request.
- The annual Fixed Cost Adjustment (FCA), filed in March and applicable to only residential and small commercial customers, adjusts prices based on changes in energy use per customer during the previous year. If the FCA proposal is approved as filed, a typical Idaho residential customer will see a $0.81 decrease on their bill related to this request.
- Idaho Power has requested a price increase to collect the cost of an accelerated depreciation schedule for all coal-related investments at the Jim Bridger Power Plant in Wyoming. If approved as filed, a typical Idaho residential customer will see a $2.07 increase on their bill related to this request.
The impact of these three filings for all Idaho customers is shown in the table below. A typical Idaho residential customer will see an overall monthly increase of $7.80. The actual percentage of change will depend on a customer’s classification and the rate they pay.
| 2022 RATE FILINGS Percentage Change from Current Billed Revenue |
||||||
| Filing | Overall Percentage Impact | Residential | Small General Service | Large General Service 1 | Large Power 2 | Irrigation |
| PCA3 | 8.27% | 6.55% | -5.24% | 9.18% | 12.10% | 8.46% |
| FCA | -0.39% | -0.81% | -0.82% | N/A | N/A | N/A |
| Bridger | 2.17% | 2.08% | 1.99% | 2.24% | 2.23% | 2.30% |
| Combined Impact4 | 10.05% | 7.82% | 6.41% | 11.43% | 14.33% | 10.75% |
1 Includes lighting schedules; 2 Includes special contracts; 3 Includes revenue sharing; 4 Totals may not sum due to rounding
The PCA has two main components: the forecast and the backward-looking balancing adjustment. The forecast reflects Idaho Power’s anticipated fuel costs, purchased power costs and customer benefits from sales of surplus energy for the coming April through March. The balancing adjustment brings last year’s forecasted costs in balance with costs actually incurred by Idaho Power by looking back at what happened the previous April through March.
The increase in this year’s PCA is attributed to last year’s actual power supply costs, which exceeded the forecast, driven by lower-than-expected hydro generation, high natural gas prices and high market prices. Idaho Power experienced higher power costs than it has in the past due to the record-setting heat wave of summer 2021, during which the company exceeded its previous all-time peak load for five consecutive days.
This year’s PCA forecast also reflects expected increases to costs primarily due to continued drought conditions, which would result in less low-cost hydro generation available to serve customers, and higher costs associated with power purchase agreements under the Public Utility Regulatory Policies Act of 1978 (PURPA).
Opportunities for Public Review
Idaho Power’s filing is a proposal subject to public review and approval by the IPUC. Copies of the application are available to the public at the IPUC offices (11331 W. Chinden Blvd. Building 8,
Suite 201-A, Boise, ID 83714), Idaho Power offices or on Idaho Power’s website, idahopower.com, or the IPUC website, puc.idaho.gov. Customers also may subscribe to the IPUC’s RSS feed to receive periodic updates via email about the case. Written comments regarding Idaho Power’s application may be filed with the IPUC.
About Idaho Power
Idaho Power, headquartered in vibrant and fast-growing Boise, Idaho, has been a locally operated energy company since 1916. Today, it serves a 24,000-square-mile area in Idaho and Oregon.
The company’s goal to provide 100% clean energy by 2045 builds on its long history as a clean-energy leader that provides reliable service at affordable prices. With 17 low-cost hydroelectric projects at the core of its diverse energy mix, Idaho Power’s residential, business and agricultural customers pay among the nation’s lowest prices for electricity. Its 2,000 employees proudly serve more than 600,000 customers with a culture of safety first, integrity always and respect for all.
IDACORP Inc. (NYSE: IDA), Idaho Power’s independent publicly traded parent company, is also headquartered in Boise, Idaho. To learn more, visit idahopower.com or idacorpinc.com.
Jordan Rodriguez
Communications Specialist
jrodriguez@idahopower.com
208-388-2460