Website: www.puc.idaho.gov
Customers of Idaho Power Co. have until May 14 to comment
on the utility’s application to increase rates by an average 14.5 percent so
the company can meet its power supply expense. For residential customers, the
average increase is 11 percent.
A poor snow pack from last winter means Idaho Power’s hydroelectric generation system will produce less power, forcing the company to generate or buy from other sources.
The
company is asking for a one-year Power Cost Adjustment (PCA) surcharge that
will add about 0.6 cents per kWh for customers. For an average customer who
uses 1,050 kWh per month, the monthly increase would be $6.41, according to the
company’s figures. Adding
in the proposed PCA, the non-summer residential rate would increase from the
current 5.05 cents per kWh to 5.66 cents. The summer rate increases from 5.73
cents per kWh to 6.34 cents on use beyond 300 kWh per month. For the first 300
kWh of use, the non-summer rate applies. See the chart below for a summary of
how the proposed PCA would affect the major customer classes.
The surcharge does not increase company revenues and is used solely to meet extraordinary power supply expense not already covered in base rates. Last year’s wetter than normal year resulted in an average 19 percent reduction in rates.
Customer bills are divided into two
components, the base rate and the PCA. The PCA is shown as a surcharge or a
credit on a customer bill and changes every spring to account for Idaho Power’s
above-normal or below-normal power supply costs. In Idaho Power's territory,
where about half its electricity is generated from hydroelectric dams,
streamflow levels largely determine power supply costs. When streamflow levels
are above normal the company doesn’t have to generate as much power from more expensive
coal or natural gas resources and does not have to buy as much power on the
wholesale market. A second factor in determining the PCA is the cost of power
on the wholesale market. When streamflows are above normal and market
conditions are normal, customers typically get a PCA credit. When streamflows
are below normal and Idaho Power must generate power from more expensive
thermal sources or buy more power on the wholesale market, customers typically
get a PCA surcharge.
The forecasted runoff from the
mountains upstream of Brownlee Reservoir is 3.3 million acre-feet. Last year,
the runoff was 8.4 maf. During an average year, the runoff is 6.3 maf.
The proposed increase varies in size according to
customer class. Residential customers would experience an 11 percent increase;
small commercial, 8.8 percent; large commercial, 16.6 percent; irrigation, 14.6
percent and industrial, 22.5 percent.
Comments are accepted through May
14 via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on
"Comments & Questions." Fill in the case number (IPC-E-07-10) and
enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID
83720-0074 or faxed to (208) 334-3762.
(-0.37 cent PCA credit) (0.24 cent PCA surcharge)
Non-summer
residential 5.42 cents/kWh
5.05 cents/kWh 5.66 cents/kWh
residential 6.1 cents/kWh* 5.73 cents/kWh 6.34 cents/kWh
Non-summer
Small commercial 6.51 cents/kWh
6.14 cents/kWh 6.74
cents/kWh
Summer
small commercial 7.33 cents/kWh
6.96 cents/kWh 7.57
cents/kWh
Non-summer
Large commercial 6.08 cents/kWh 5.71 cents/kWh 6.32 cents/kWh
Summer Large
commercial 6.81 cents/kWh**
6.44 cents/kWh 7.05 cents/kWh
non-summer
Industrial 2.22
cents/kWh 1.85 cents/kWh 2.46 cents/kWh
Mid-peak
summer
industrial 2.45 cents/kWh 2.08 cents/kWh 2.60
cents/kWh
In-season
Irrigation*** 3.4 cents/kWh 3.03
cents/kWh 3.64 cents/kWh
Out-of-season
irrigation 4.32 cents/kWh 3.95 cents/kWh 4.56
cents/kWh
*The summer residential rate does not kick-in until after
the first 300 kWh of use per month.
**The large commercial summer rate of 6.81 cents applies
to the first 2,000 kWh of use. All
additional use is 2.92 cents/kWh. The large commercial non-summer rate of 6.08
cents/kWh applies to first 2,000 kWh of use. Add additional use is 2.6 cents
per kWh.
***Industrial customers also have rates for On-peak use, which are slightly higher than Mid-peak and Off-peak use, which are slightly lower than Mid-peak use. Also, industrial and irrigation customers pay significant demand charges in addition to their base rate energy charge.