Idaho PUC investigates prudency of Idaho Power Company’s $35.2 million investment

Published on July 05, 2016 by Jessica Limardo


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The Idaho Public Utility Commission (PUC) will investigate the extent to which $35.2 million in energy efficiency investments at the Idaho Power Company were incurred prudently to justify its consumer rider program, the organization said on Tuesday.

The PUC will take public comments regarding Idaho Power’s application through July 14 to aid in determining if the Idaho Power Company was frugal in its energy efficiency advancement programs, which seek to enhance the energy efficiency and usage of its customers.

The Idaho Power Company has invested $35.2 million in its program and expects to recover $28.5 million through a four percent rider. The remaining $6.7 million, if approved, will be recovered by the annual Power Cost Adjustment program through demand reduction incentive payments to program participants.

If the PUC determines that the Idaho Power Company’s demand-response expenses were sourced prudently, the company will be allowed to recover its rates. If not, shareholders will pay the expense.

The Idaho Power Company estimates that its energy efficiency program and its demand-reduction program have decreased its annual energy consumption by 18 percent. The PUC will investigate the company’s costs through a standard cost-effectiveness test. One of the tests specifically seeks to determine if the utility’s programs benefit all of the utility’s customers, not only those who participate in the energy reduction programs directly.