Idaho Power files Annual Fixed Cost Adjustment

By Shannon Weidemann (McKone) on Thursday, March 17th, 2022 in More Top Stories Northeastern Oregon News

BAKER COUNTY – (Release provided by Idaho Power) Idaho Power has filed the first of two annual cost adjustments with the Idaho Public Utilities Commission (IPUC). This year’s annual Fixed Cost Adjustment (FCA) requests a decrease of $4.9 million, or 0.81%, for residential and small general service customers in Idaho.

If the FCA proposal is approved as filed, a typical residential customer using 950 kilowatt-hours per month would see about a $0.81 decrease to their monthly bill beginning June 1. However, the final impact to customer bills won’t be known until a second annual adjustment, the Power Cost Adjustment (PCA), is filed in April.

In addition to the FCA filing, 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. Idaho Power’s most recent long-range plan has concluded that ending coal-fired operations at Bridger by end of year 2028 will lower costs for our customers over the 20-year planning horizon. The Bridger filing calls for near-term revenue increase of $27.1 million, or 2.17%, to facilitate the earlier exit. If approved, all rate changes will go into effect June 1.

The FCA annually adjusts prices up or down based on actual changes in energy use per customer during the previous year. It is a true-up mechanism that separates energy sales from revenue to eliminate financial disincentives for Idaho Power to invest in demand-side management, which can contribute to use per customer declining.

In 2021, Idaho Power’s energy efficiency programs saved 143,971 megawatt hours — enough energy to power about 12,600 average-sized homes for a year. Idaho Power values demand-side management, energy efficiency and education programs, and the FCA mechanism allows us to provide these programs to our residential and small general service customers without negative financial impacts.

The FCA allows Idaho Power to recover an IPUC-authorized level of fixed costs — costs associated with things like generation plants, power lines and substations — per customer. If the company collects less than the authorized fixed-cost amount, it can collect the difference through a surcharge. If the company collects more than the authorized amount, it refunds the difference to customers through a credit.

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.