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Idaho Weaves Conservation Into Rate Hike
The Idaho Public Utilities Commission (IPUC ) took a major step May 1 to encourage energy conservation. The Commission established tiered rates for residential customers of the Idaho Power Company as part of the utility's request for a 45.6 percent rate increase.
Under the plan, residential customers will be charged for electricity in three blocks based on the amount they consume. Rates will increase for each customer by 14 percent for the first 800 kilowatt hours (kWh) used each month, 29 percent for the next 1,200 kWhs, and 62 percent for use over 2,001 kWh. An average Idaho Power residential customer consumes about 1,200 kWh per month and with no conservation would see monthly costs rise by $11.60, or about 18 percent.
Rates for non-residential customers will increase uniformly by 1.34 cents per kWh, which represents increases of 31 percent for irrigators, 19 percent for small commercial customers, 33 percent for large commercial customers, and 42 percent for industrial customers.
The IPUC granted about three quarters of the company's requested rate increase and deferred recovery of approximately $59 million pending further investigation of Idaho Power's trading practices. Regulators also will investigate whether the company's resource plans adequately address current drought and market conditions.
The IPUC also required Idaho Power to submit additional conservation proposals by August 1, in response to a motion filed by the Land and Water Fund of the Rockies . Other intervenors included the Idaho Rural Council , Idaho Rivers United , and recently-elected NW Energy Coalition board chair Mary McGown .
Idaho Power also received final approval for its green tariff program. On May 8, the company began accepting voluntary contributions from customers toward its purchase of 1 average megawatt of "green tags" at 1.5 cents per kWh from the Bonneville Environmental Foundation (see the April Report ). The company's marketing materials note that for every $10 a customer contributes monthly, Idaho Power will purchase an estimated 8.4 tons of carbon dioxide (CO2) offsets the amount produced by an average car in one and a half years.
Heather Rhoads-Weaver