Idaho Power requests increase of $111M in latest general rate case
Idaho Power customers will likely see bills rise in 2024, following a general rate case filed by the company last week that requested the Idaho Public Utilities Commission (IPUC) approve an 8.61 percent overall rate increase, or $111 million.
The price adjustment marks the first general rate case filed by Idaho Power since 2011. Since then, the company noted investments of more than $3 billion into grid safety and reliability measures, while its customer base grew approximately 23 percent. Idaho Power’s operating expenses reportedly rose by about $50 million over that period. Accounting for all this, the company stated that base rates will now include two adjustments henceforth: reduced collection through the annual Power Cost Adjustment and a decrease to the annual Energy Efficiency Rider.
No matter how IPUC ultimately rules, no changes would occur until at least January 2024.
“We are sensitive to the impacts rate increases have on our customers, and our company works hard to keep our expenses low and our prices well below the national average,” Lisa Grow, Idaho Power president and CEO, said. “This case is largely focused on the infrastructure additions that have been necessary to reliably serve our growing customer base.”
A general rate case is subject to public review and approval by the IPUC, as it is used to determine the costs of operating and maintaining the utility system, as well as how those costs are split between customers. New rates help companies collect the level of revenue needed to cover costs while maintaining a reasonable rate of return. Actual percentages will vary depending on customers’ classifications and the rates they pay.
Take residential customers, for example. They would see a 10.78 percent increase to their bills if the request is approved as filed, meaning that the average residential customer using 950 kW hours per month could see monthly bill increases of about $11.61. On the other hand, small general service customers would see percentage increases of 11.44 percent, while large general service customers’ bills would go up 0.9 percent and large power customers 5.98 percent.
Idaho Power’s customers in Oregon will not be affected by this filing, though.
