IPUC approves 2 applications that will change rates for eastern Idaho electric utility customers
BOISE, Idaho (KIFI) – The Idaho Public Utilities Commission has approved two applications submitted by Rocky Mountain Power that will change the rates the utility charges customers for electricity service.
Rocky Mountain Power asked for approval to adjust rates under the Energy Cost Adjustment Mechanism (ECAM). The utility also asked for approval to implement a residential rate modernization plan.
The ECAM allows Rocky Mountain Power to increase or decrease rates each year to reflect changes in power supply costs. These costs vary year by year based on the utility’s costs relating to gas, coal, surplus power sales, power purchases, and transmission costs. Rates for customers will increase from 1.6 percent to 3.0 percent depending on the category a customer is in. The monthly average bill for a residential customer using 783 kilowatt hours will increase by approximately $1.57. Rocky Mountain Power will be allowed to recover $32.5 million because of the approved changes.
In addition to the ECAM, the commission approved a rate modernization plan that will be fully implemented over a five-year period. Rocky Mountain Power bills residential customers monthly. Customers pay a fixed service charge as well as an energy charge based on the amount of electricity used. The utility said the current $8.00 per month customer service charge does not cover the fixed costs incurred by residential customers. Because of that, the recovery of fixed costs have been shifted to the volumetric energy charges.
Rocky Mountain Power asked for, and received, approval to increase the customer service charge for certain classes of customers from $8.00 per month to $29.25 per month over the course of five years. The volumetric energy charges will be lowered as the raises to the service charge are implemented.
