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Idaho Power reaches rate settlement with customers
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Idaho Power's Hells Canyon hydro plant, which has 391.5 megawatts of capacity. Idaho Power photo
Idaho Power has reached a proposed settlement with customer groups and state regulators that would freeze general rates until Jan. 1, 2012.
The settlement, which must be approved by the Idaho Public Utilities Commission, also provides for rate reductions in order to share savings from an expected $160 million reduction next year in the power cost adjustment mechanism, which tracks ups and downs in fuel costs at Idaho Power's thermal power plants and purchased power costs. In addition, the settlement provides that the company will share earnings with customers if it earns more than its authorized rate of return in any year through 2011.
The proposed settlement was filed November 6 with the Idaho PUC. If the PUC approves the deal, Idaho Power would cancel a previously announced plan to file a general rate case in 2010. "This agreement provides required regulatory cost recovery and financial support to the company while establishing a period of relative rate stability for our customers," Idaho Power CEO J. LaMont Keen said.
Idaho Power serves 489,000 customers in a 24,000-square-mile service territory in southern Idaho and eastern Oregon.
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