Customers of Idaho Power Company will see their electricity rates increase by 3.77 percent effective June 1 according to a report by KIFI/KIDK.
The higher rates are part of the company’s annual Power Cost Adjustment and Fixed Cost Adjustment. The Idaho Public Utilities Commission said nether adjustment increases the company’s earnings, but go toward paying down power supply expenses that vary from year to year.
The Power Cost Adjustment portion of the rate hike increases rates by 1.57 percent. Since Idaho Power gets about half of its generation from hydroelectric facilities, a large portion of its costs are dependent on Snake River streamflows. According to the Idaho PUC,actual hydro generation last year was 27 percent less than the company forecast.
The Fixed Cost Adjustment was implemented in 2007. It is designed to ensure Idaho Power recovers its fixed costs for delivering energy when energy sales decline due to reduced consumption. The adjustment will increase customer costs by 2.2 percent. It is intended to provide an incentive for the utility to invest in energy efficiency programs.
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