In March, Idaho Power applied to increase its overall rates by 8.6 percent. (Courtesy of Idaho Power)
Idaho Power customers will see an increase in monthly prices after the Idaho Public Utilities Commission approved the company’s annual spring cost adjustments June 1.
Idaho Power applied to increase its power cost adjustment rates in April after citing higher power costs related to natural gas and market prices, lower than expected hydro generation and a limited coal supply.
In a press release, the utilities commission said the monthly rate change accounts for an increase in power costs and a decrease in fixed costs — Idaho Power’s costs to provide service that do not vary with fluctuations in energy consumption.
“Because of a diverse generation portfolio, Idaho Power’s actual costs of providing electricity varies annually depending on factors such as river streamflow, the amount of purchased power, fuel costs, and the market price of power, among other factors,” the press release said.
While a typical residential customer would see an approximate $1.66 decrease in their monthly bill for fixed cost adjustment through May 2024, the power cost adjustment would account for approximately $6.68 per month.
Accounting for the two cost adjustments, a typical residential customer using 950 kilowatt-hours per month would see an overall monthly increase of $5.02.
The approved power cost adjustment would allow Idaho Power to increase its revenue by approximately $200 million, according to the company’s application. That price would be spread equally over two years to mitigate impacts on customers.
Idaho Power and its shareholders would not receive a financial return from the power cost adjustment, but rather it can only be used to pay power supply expenses.
Beginning this month, Idaho Power customers can expect see the following percentage increase in prices this year:
- Residential customers: 4.69%
- Small general service customers: 3.48 %
- Large general service customers: 8.5%
- Large power customers: 10.63%
- Irrigation customers: 7.88%
Correction: This story has been corrected to reflect that the increased prices from the power adjustment cost will take place over a two-year span.
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