Idaho Power seeks 14.5 percent rate hike Not enough runoff means customers could pay about $6.41 more a month

 

Apr 23 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Matt Christensen The Times-News, Twin Falls, Idaho

Think it's just farmers who worry about snowpacks? If you use electricity, think again.

Idaho Power Co. customers could see their monthly bills rise this summer if the Idaho Public Utilities Commission approves a company request to increase rates, according to statements released by Idaho Power and the IPUC.

A poor winter snowpack means the company will have less water for its hydroelectric facilities, and the company will be forced to rely more on its out-of-state coal-fired power plants or upon wholesale power purchases. A typical residential customer could see rate increases of about $6.41 per month. That's about a 14.5 percent increase in rates, according to the IPUC.

The company's proposal affects power-cost adjustment, or PCA, and involves a portion of customers' bills that fluctuates each spring depending on power-supply costs.

"Our PCA filing this year reflects just how bad the winter snowpack was for Idaho Power and ultimately our customers," said Ric Gale, the company's vice president for regulatory affairs, in a statement released to the press. "The forecast runoff from the mountains upstream of Brownlee Reservoir is only 3.3 million acre-feet during the important April-through-July period. That's the time when we count on our low-cost hydroelectric systems to meet our heavy summer loads," he said.

Indeed, snowpacks across the state have been generally below average, particularly in south-central Idaho -- the larger the snowpacks, the more runoff and water for the company's hydroelectric facilities. Last year when snowpacks were large, for example, runoff for Brownlee Reservoir was about 8.4 million acre-feet, and the company reduced rates by about 19 percent. An acre foot is the amount of water needed to cover one acre in water a foot deep.

This year, however, snowpacks are low and the company is requesting permission from regulators to offset its costs. Idaho Power makes no money on PCA fluctuations, according to the IPUC.

"The PCA addresses both the strengths and the weaknesses of hydropower," Gale said. "It passes on the benefits of good water years when we can use our hydro system to its fullest. And in times when hydro generating conditions are poor, the increased costs for power are shared between the company and its customers when we must use other means to supply electricity," he said.

The IPUC is accepting public comment on the proposal until May 14. To share your thoughts, visit the IPUC Web site at http://www.puc.idaho.gov. The case number is IPC-E-07-10.

Times-News staff writer Matt Christensen welcomes comments at 735-3243 and at matt.christensen@lee.net.