Impact of Rate Increases on Customers

1. What is the average rate increase?

2. For an average residential customer using 1050 kWh a month, what will be the bill impact?

Other Information

3. How was the final decision made on the allowed rate increase?

4. What other Stipulation issues were authorized in the IPUC’s rate case Order?

Rate Case History

5. How much was the company’s original rate request?

6. Why was this rate case necessary?

Changes to Rules & Regulations

7. What changes have been made to the company’s Rules & Regulations?

 

 

Impact of Rate Increases on Customers

1. What is the average rate increase?

• Residential Class – 4.70 percent
• All Other Classes – 5.65 percent (small commercial, large commercial, irrigation,
industrial)
• Overall average – 5.2 percent

2. For an average residential customer using 1,050 kWh a month, what will be the bill impact?

• Summer: The customer’s monthly bill will increase $3.15.
• Non-Summer: The customer’s monthly bill will increase $2.90.
• Overall Average: The customer’s monthly bill will increase $2.96.

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Other Information

3. How was the final decision made on the allowed rate increase?

Idaho Power and all the other parties’ representatives in the Rate Case met and developed a settlement Stipulation which they agreed was a fair and reasonable compromise of all the issues. After a review, the Idaho Public Utilities
Commission (IPUC) approved the Stipulation which allowed for an overall increase in revenues of 5.2 percent ($32.1 million).

4. What other Stipulation issues were authorized in the IPUC’s rate case Order?

The IPUC’s rate case Order also addressed the following issues:

• Load Growth Adjustment Rate (LGAR)
  The LGAR is one component within the PCA mechanism. The parties will work to develop a revised mechanism to address costs of serving load growth between general rate cases.

• Forecast Test Years
  The Parties agree to discuss a forecast test year methodology that balances auditing concerns raised by Commission Staff with the company’s need for timely rate relief.
  
  
• Irrigation Peak Rewards Program
  By June 19, 2008, a working group will be convened to discuss:
  
  • The results of the current Irrigation Peak Rewards Program
  • A dispatchable demand response pilot program for the 2009 irrigation season
  • A methodology used to determine the incentive payments for the various programs
  • Steps to ensure the effects of demand response programs are adequately reflected in the company’s
    load research data

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Rate Case History

5. How much was the company’s original rate request?

The company originally requested an overall average increase of 10.35 percent or $64 million.

6. Why was this rate case necessary?

Base rates reflect the company’s cost of equipment, vehicles and infrastructure needed to provide electrical service to its customers.

A few examples of changes since the last rate case filed in 2005 include:

• An additional $300 million investment in the electrical system
• Substantial increases in the cost of power purchases
• Additional expenses related to rapid customer growth

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Changes to Rules & Regulations

7. What changes have been made to the company’s Rules & Regulations?

Outside of some contract provisions which only affect the company’s industrial customers and some changes to Rule K which address load and operation characteristics, there are no material changes to the company’s Rules &
Regulations.