Idaho commission approves settlement that includes coal plant retirement, rate increase
The Idaho Public Utilities Commission (PUC) approved this week a settlement entailing the early
retirement of coal plant co-owned by Idaho Power and NV Energy as well as rate increases.
The 1.17 percent rate increase will allow for quicker recovery of investment in the 522-megawatt (MW) North Valmy Power Plant through base rates. The typical residential customer using 1,000 kilowatt-hours
of energy per month will see an increase $1.20 on an average monthly bill. This base rate increase is much lower than the initial proposed increase.
The agreement requires the shutdown of the plant’s Unit 1 in 2019, and Unit 2 in 2025. Each unit has a
50-year life expectancy, and that expectation was reflected in Idaho Power’s base rates.
According to Idaho Power, the plant’s early retirement will ultimately save customers money. Operating the plant had become uneconomic except during extremely cold or hot weather when the demand for energy surges due to decrease in market prices for electricity.
The settlement was reached after two meetings with interested parties, including the U.S. Department of Energy, Idaho Conservation League, Sierra Club, Idaho Irrigation Pumpers Association, Micron Technology and the Industrial Customers of Idaho Power.
“We recognize the considerable efforts of the parties and commend their cooperation in reaching agreement on the various and complex issues in this case,” PUC said.
