BOISE, Idaho (KIFI) — Idaho Power has requested two rate adjustments with the Idaho Public Utilities Commission (IPUC).
Both adjustments are related to depreciation of assets and the company’s early exit from the Bridger coal-fired power plant.
If both requests are approved as filed, the average residential customer using 950 kilowatt hours (kWh) of energy per month would see a monthly bill increase of $2.71, effective December 1, 2021.
More information about the two filings, which would increase rates $34.6 million in total, is included below:
Filing 1: Depreciation Update Results in Rate Increase
Energy companies like Idaho Power recover the cost of their investments in assets over their expected lives through depreciation expense. Every five years, Idaho Power is required to file a study with the IPUC analyzing the expected lives of its assets. Those findings result in changes to rates through adjusted cost recovery of these assets. The study was performed this year and, if approved as filed, Idaho Power’s rates will increase by $3.8 million on December 1, 2021. Impacts to each customer class are included in the table below.
Filing 2: Early Exit from Bridger Leads to Short-term Increase, Long-term Savings
In analyzing the depreciation of its assets, Idaho Power recognized that significant changes in the economic life of the Bridger coal-fired plant had occurred since the previous study, warranting the need for a specific, separate review. Idaho Power’s rates currently reflect a recovery timeline through 2034. However, recent analyses indicate the potential for customer savings by exiting all four units at the plant by 2030.
This filing seeks to accelerate the recovery of depreciation expense by year-end 2030, and to establish a balancing account to track the incremental costs and benefits associated with Idaho Power’s exit from coal-fired operations at Bridger. If approved as filed, rates will increase $30.8 million on December 1, 2021. Impacts on each customer class are included in the table below.