BOISE, Idaho (KIFI) - Idaho Power Company reports this year’s “Power Cost Adjustment” (PCA) calls for a price increase of $39.1 million across all customer classes. The company has now filed the final piece of its annual spring cost adjustments with the Idaho Public Utilities Commission.
Under the PCA, neither Idaho Power nor its shareholders receive any financial return from the cost adjustment filing. The money collected is used to either recover costs or credit benefits associated with the annual fluctuation in power costs. That represents one-fourth to one-third of the company’s annual cost of serving customers.
If approved by the IPUC as filed, Idaho Power says the typical Idaho residential customer, using 950 kilowatt-hours of energy per month, will see an increase of $2.57 per month, beginning June 1.
If Idaho Power’s previously filed “Fixed Cost Adjustment” is approved as filed, a typical residential customer will see an increase of 37 cents per month, beginning June 1.
Together, a typical Idaho Power residential customer will see an overall monthly increase of $2.94, depending on a customer’s class and the rate they pay.
This year’s PCA forecast reflects expected increases to power costs, primarily due to weaker forecast water conditions, which could result in less low-cost hydro generation, as well as higher costs associated with power purchase agreements.