Rocky Mountain Power proposes rate increase
Rocky Mountain Power is proposing a change in its rate schedule that could raise residential electricity rates by 2.7 percent, or $2.35 per month.
According to the Idaho Public Utilities Commission, the rate adjustment is proposed as part of the company’s annual Energy Cost Adjustment Mechanism, which tracks the company’s variable power supply expenses.
The change would shift $10.2 million of net power supply costs from a temporary rate mechanism into permanent base rates. Rocky Mountain Power claims the mechanism worked well initially because the company had more control over the output from its power purchasing decisions. In recent years, however, the company said power supply expense is shifting from more predictable sources of supply to sources with generation characteristics outside its control.
The most drastic change is the increased reliance on short-term market purchases. Company-owned wind power has also increased by 47 percent and purchases from independent renewable energy developers increased by 15 percent.
The utility says its proposed modifications and the resetting of base net power costs is a preferred alternative to a general rate case, which could impact customers even more.
Parties to the case include commission staff, Monsanto Company, the PacifiCorp Idaho Industrial Customers and the Idaho Irrigation Pumpers Association. Settlement conferences for the parties have are scheduled for August 11 and again for August 19, if needed.
Public comments will be accepted through September 4.
