Idaho Power files final piece of cost adjustments

On Friday, Idaho Power announced it had filed for a price increase with the Idaho Public Utilities Commission (IPUC) to address higher costs for natural gas and lower-than-anticipated hydro generation.

The final piece of the annual cost adjustment also addresses the utility’s limited coal supply, officials said. Idaho Power is seeking a $200.23 million increase to cover expenses associated with fluctuating power supply costs or a power cost adjustment (PCA).

“We understand times are tough for many, and we are sensitive to the impacts price increases have on our customers,” Ryan Adelman, vice president of power supply, said. “Unfortunately, our power supply costs were higher this past year because of continued drought conditions, high natural gas prices, and fuel supply challenges, and we must recover those costs to maintain the reliable service our customers depend on. Despite these obstacles, we are working hard to keep our prices 20 percent to 30 percent lower than the national average.”

The utility had previously filed a Fixed Cost Adjustment (FCA) on March 15. If approved, the rate changes will take effect June 1 and will be reflected in an estimated $11.06 increase on the typical residential customer bill.

The increase covers both the FCA and a PCA. The FCA applies only to residential and small commercial customers and adjusts prices based on changes in energy use per customer. The year’s FCA will see customers’ bills drop by $1.66 per month. The PCA recovers the costs of supplying energy to Idaho Power customers. That request will see bills increase by $12.72 per month.

Officials said the PCA is driven mainly by last year’s actual power supply costs, which exceeded forecasts. This year’s forecast also reflects higher-than-normal costs for natural gas and a limited coal supply.