Idaho Power’s cost-of-living adjustments will lower rates for customers

Idaho Power this week filed the first of two annual cost-of-living adjustments with the Idaho Public Utilities Commission (IPUC) that would result in lower bills for their customers.

The annual fixed cost adjustment (FCA) requests a decrease of $10 million, or 1.56 percent, for residential and small general service customers in Idaho. If approved, a typical residential customer using 950 kilowatt-hours per month would see about a $1.66 decrease in their monthly bill starting June 1.

The FCA adjusts prices up or down based on changes in energy use per customer during the prior year. In 2022, Idaho Power’s energy efficiency programs saved 169,889 megawatt hours — enough energy to power about 14,900 average-sized homes for a year.

The FCA allows Idaho Power to recover a certain 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.

Copies of the application are available to the public at the IPUC offices at 11331 W. Chinden Blvd. Building 8, Suite 201-A, Boise, ID 83714. They can also be viewed on idahopower.com or at the IPUC website, puc.idaho.gov.

A second annual adjustment, the power cost adjustment, will be filed in April, resulting in further price changes. Idaho Power serves 610,000 customers in Idaho and Oregon.