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Idaho Power asking to increase rates; average monthly increase would be $2.71

Idaho Power work vehicle. (Courtesy Idaho Power)
Idaho Power work vehicle. (Courtesy Idaho Power)
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Idaho Power is asking to increase two rate adjustments with the Idaho Public Utilities Commission.

If approved, the average monthly bill could increase by $2.71 for a homeowner using 950-kilowatt hours per month, the power company said Wednesday.

Here's what Idaho Power says is the reasoning behind the request.

Filing 1: Depreciation Update Results in Rate Increase

Energy companies like Idaho Power recover the cost of their investments in assets over their expected lives through depreciation expense. Every five years, Idaho Power is required to file a study with the IPUC analyzing the expected lives of its assets. Those findings result in changes to rates through adjusted cost recovery of these assets. The study was performed this year and, if approved as filed, Idaho Power’s rates will increase by $3.8 million on December 1, 2021. Impacts to each customer class are included in the table below.

Filing 2: Early Exit from Bridger Leads to Short-term Increase, Long-term Savings

In analyzing the depreciation of its assets, Idaho Power recognized that significant changes in the economic life of the Bridger coal-fired plant had occurred since the previous study, warranting the need for a specific, separate review. Idaho Power’s rates currently reflect a recovery timeline through 2034. However, recent analyses indicate the potential for customer savings by exiting all four units at the plant by 2030.

Idaho Power has roughly 590,000 customers.

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