Idaho Power customers could see a 9.9 percent hike in their bills, if the Idaho Public Utilities Commission allows for the base rate increase requested by the power company.
The increases are detailed in a June 27 press release from Idaho Power.
Although the requested increase is for an average of 9.9 percent, the company's rate proposal impacts various customer groups differently. For example, if the request is approved as filed, residential customers would see an average increase of 6.3 percent. The monthly bill for a typical residential customer using 1,050 kilowatt-hours per month would increase from $66.06 to $69.83 during non-summer months and from $70.21 to $74.86 per month during June, July and August.
The average increase for industrial and irrigation would be 15 percent.
"Two forces are driving this increase: growth in the number of customers and a growing demand for electricity," said Idaho Power Vice President for Regulatory Affairs Ric Gale. "We have invested heavily to ensure we can provide a safe and dependable supply of energy for our current and future customers. This request seeks to recover those investments."
Since 2005 Idaho Power has invested $578.2 million in its extensive electrical system. This includes construction of 13 new substations, adding 1.157 miles of distribution lines and 190 miles of transmission lines.
"It's retrospective," said Idaho Power spokesman Dennis Lopez. "It looks back at what we've spent, not what we need to spend in the future. In this case it's for about $580 million in improvements we made from 2005 through 2008."
In those same three years the amount of electricity the utility purchased from other utilities grew from $876 million to more than $2 billion. The purchases include renewable resources such as wind and geothermal. Idaho Power also invested to increase its generating capacity to 3,267 megawatts compared to 3,087 megawatts in 2005. A single megawatt can power at least 650 homes.
"Our investment in generation, transmission and distribution facilities ensures better system reliability," Gale said. "However, to meet our customers' growing need for electricity we must continue to make these investments."
The company's proposal would increase its revenues $67 million annually in order to begin recovering previous capital investments and higher operating costs.
The proposed rate increases do not include a power cost adjustment that adjusts rates on June 1 every year. Filed on April 15, the power cost adjustment varies annually and is largely driven by snowpack and resulting stream flow conditions in the Snake River.
The filing this summer is subject to Idaho Public Utilities Commission review. The PUC will begin a review of the application and will seek public input on the request.
Copies of the filing are available at Idaho Power's Web site at www.idahopower.com/idahoratefilings, at the PUC Web site at www.puc.state.id.us or at the commission offices at 472 W. Washington St. in Boise, or at Idaho Power offices in Nampa, Payette, McCall, Mountain Home, Goosing, Hailey, Twin Falls, Pocatello, Blackfoot or Salmon.
