Idaho commission seeking public comments on settlement to close power plant, raise rates

The Idaho Public Utilities Commission (PSC) is accepting comments through May 25 on a proposed settlement that would close a Nevada coal plant co-owned by Idaho Power ahead of schedule and increase base rates for customers.

The settlement would close Unit One of the North Valmy Power Plant in Nevada in 2019 and shut Unit
Two down in 2025. The units are currently scheduled for closure in 2031 and 2035, respectively.

If approved by the PSC, the settlement would increase base rates by approximately $13.3 million, or 1.17 percent, so that Idaho Power could more quickly recover its investment in the plant. The increase equates to an extra $1.20 charge on the monthly bill of the typical residential customer who uses 1,000 kilowatt-hours of energy each month.

Idaho Power, which co-owns the plant with NV Energy, maintains that shutting the plant down early will ultimately save customers $103 million in today’s dollars.

Reduced electricity prices have made it uneconomical to operate the plant except for when energy demand peaks during extremely hot or cold weather, the company said. Routine maintenance and repairs as well as investments for meeting environmental regulations have also increased plant balances, according to Idaho Power.