- Why two separate rate actions, a Power Cost Adjustment and a General
Rate Case? - Why does Idaho Power need a rate increase?
- Didn't you just raise my rates?
- How much will this base rate increase amount to?
- When will any increase go into effect?
- Am I paying for Idaho Power’s commercials through my rates?
- So is this the last general rate increase we’ll see for awhile?
- Will the public have any say in the decision to grant new rates?
- Why should I have to pay higher rates because of growth and increased costs that occurred after I was already a customer?
- Will this rate increase be the same for all types of customers?
- Why don't all customers (residential, commercial, industrial and irrigators) pay the same for the same electricity that everybody gets?
- Are any of the costs of Idaho Power's energy efficiency incentive programs included in this rate increase?
- Why is there a Conservation Program Funding Charge on my bill? How much is it and what is it used for?
- What has been the impact of the energy efficiency programs in the past couple years?
- Do Oregon customers also pay for energy efficiency programs?
- Will this rate change affect Oregon customers too?
1. Why two separate rate actions, a Power Cost Adjustment and a General Rate Case? They are two very separate and distinct rate actions. The Power Cost Adjustment (PCA) is filed annually and reflects stream flow conditions as they pertain to hydro generation. We have filed one every year since the early 1990s. As for the General Rate Case (GRC), these have been filed less regularly. We filed one in 2003, one in 2005 and now this 2007 action. The GRC covers all aspects of the utility's costs, not just the energy component. These costs include investments in the electrical system, labor costs and other expenses like phones, trucks, offices, postage, etc. GRC's are much more extensive undertaking than the annual PCA.
2. Why does Idaho Power need a rate increase? The company last filed for a general rate adjustment in 2005. We have added more than 30,000 new customers and have invested in new facilities including generation plants, substations and transmission lines to serve our existing and future customers. Since then, the costs of providing service have gone up, particularly as our customers and loads have grown. In other words, the company’s rates today do not reflect the investment in infrastructure and facilities made since our last rate case, the costs associated with adding new customers and the growing day-to-day costs of running a utility.
3. Didn't you just raise my rates? Yes, there was an increase June 1 as the result of the annual Power Cost Adjustment (PCA) filing. That change represented an increase in only energy costs – Idaho Power’s cost of buying and producing energy. When snow pack conditions are good rates can go down as they did by almost 19 percent last year. Conversely, when there is lackluster snow conditions in the mountains upstream of Brownlee Reservoir, rates can rise, as they did this year when they went up an average of 14.5 percent.
This general rate case covers all aspects of the utility's costs, not just the energy component. These costs include investments in the electrical system – including power plants, power lines and substations – as well as labor costs and other expenses like phones, trucks, offices, postage, etc. General rate cases are filed infrequently and are a much more extensive undertaking than the annual PCA.
There also was the annual June 1 change to summer rates from non-summer rates.
Customers also will begin to feel the impact of the loss of the Bonneville Power Administration (BPA) credit which was discontinued following a ruling by the U.S. 9th Circuit Court. Idaho Power and the other six investor-owned utilities in the Pacific Northwest have reached an agreement in principle with the BPA. The credit will be restored, but when and to what degree is still being negotiated.
4. How much will this base rate increase amount to? Overall we have asked for a 10.35 percent increase. However, each customer group has its own unique rate based upon their overall consumption and seasonal usage of electricity.
5. When will any increase go into effect? The Idaho Public Utilities Commission (IPUC) review and approval processes play a major role in the timing of any rate adjustment. By statute, the IPUC has seven months to act upon a request for a permanent increase in the company’s base rates, which means it is anticipated to go into effect in January 2008.
6. Am I paying for Idaho Power’s commercials through my rates? No. The costs for Idaho Power’s current Resource Cornerstones advertising campaign are not borne by the company’s customers nor have customers paid for past advertising campaigns.
These costs have been designated as “below the line” expenses, meaning that they are paid for by the company’s shareholders and are not part of the rates that customers pay for their electricity.
The company wants its customers to understand the reasons for rate increases, so it advertises.
The public should be aware of many aspects of the company’s costs and investment requirements like growth, infrastructure construction and maintenance, relicensing and so on. These costs and investments impact rates and customers have told the company that they want improved communications about matters affecting them.
7. So is this the last general rate increase we’ll see for awhile? No, probably not. Idaho Power believes that smaller more frequent rate actions are in the best interest of its customers and the company.
8. Will the public have any say in the decision to grant new rates? Now that a docket has been opened, the Idaho Public Utilities Commission (IPUC) will establish and announce a schedule for public comment and testimony in the case.
9. Why should I have to pay higher rates because of growth and increased costs that occurred after I was already a customer? The company’s infrastructure investments ultimately benefit all customers, not just new ones. This rate action also is related to upgrades and improvements to existing power infrastructure and power plants, all needed to ensure reliable service today and tomorrow.
10. Will this rate increase be the same for all types of customers? Individual customer groups’ rates are related to the cost of providing them service. Because each group has a different rate, the percentage of any rate adjustment varies from customer group to customer group.
11. Why don't all customers (residential, commercial, industrial and irrigators) pay the same for the same electricity that everybody gets? Different customer groups use different types of facilities and use electricity in differing amounts and ways. All impact our costs of serving them. These factors are considered by the Idaho Public Utilities Commission (IPUC) in setting rates.
12. Are any of the costs of Idaho Power's energy efficiency incentive programs included in this rate increase? No. The rate increase is based on overall costs incurred to maintain a reliable electric system. Though energy efficiency programs are a vital part of our plan to manage future energy needs, Idaho Power does not currently fund programs and incentives through general rates. Instead, these efforts are funded through the Conservation Program Funding Charge on your bill.
13. Why is there a Conservation Program Funding Charge on my bill? How much is it and what is it used for? The Conservation Program Funding Charge was established in 2002 as a way to fund energy efficiency programs that are designed to reduce overall electricity use. Lowering customer demand is a very cost-effective way for Idaho Power to manage the electrical system and at the same time, if the demand for electricity is decreased through these programs, all customers see the benefits of the cost savings realized by reducing the demand for new power plants.
The Conservation Program Funding Charge is 1.5 percent of monthly bills and is capped at $1.75/month for residential customers and $50/month for irrigation customers. The funds collected are used specifically for energy efficiency programs and activities. The company has a growing number of programs with options for all of our customers.
14. What has been the impact of the energy efficiency programs in the past couple years? Customers who have participated in Idaho Power’s energy efficiency programs have had a measurable impact on energy consumption during 2005 and 2006. The total energy saved through programs is 108,618,870 kWh, which is equivalent to the energy consumed by over 8,600 average Idaho homes.
15. Do Oregon customers also pay for energy efficiency programs? Oregon customers also pay a Conservation Program Funding Charge that is 1.5 percent of their monthly bills. Idaho Power offers programs across its entire service area so that all customers have an opportunity to benefit from lower bills.
16. Will this rate change affect Oregon customers too?
No, the General Rate Case would be limited to Idaho Power’s Idaho customers. The company must make a separate application to the Oregon Public Utility Commission to change its Oregon rates.
