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MagazinesIdaho Power proposes rate increase of 1.4%
| FROM: | The Times-News, Twin Falls, Idaho |
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| AUTHOR: | Joshua Palmer |
Mar. 23--The Idaho Power Co. is proposing to increase customer rates by about 1.4 percent to pay for a new natural gas plant near Mountain Home.
According to a the Idaho Public Utilities Commission, Idaho Power is seeking to recover from customers $64.9 million in expense for the 170-megwatt plant, which is scheduled to be in commercial operation by June 1.
Idaho Power will use about $57.7 million to help cover plant construction and $7.3 million for additional transmission and interconnection expenses to connect the new plant.
"The plant is basically needed to meet the growing demand," said Gene Fadness, public information officer for the IPUC. "Natural gas and coal are generally things you try to steer away from, but this was found to be the most economical way meet demand."
Fadness said total transmission expense is anticipated to be $26.8 million, but due to delays in construction, Idaho Power is asking to recover $7.33 million now and to recover the remaining cost in a subsequent application.
To meet the total request in addition to the company's authorized 8.1 percent rate of return, Idaho Power officials say the company will need to increase its annual revenue by $9 million. The company proposes to increase customer rates for all customer classes and for Idaho Power's three large contract customers by 1.39 percent.
For a residential customer who uses about 1,050 kWh per month, Idaho Power says the monthly increase during non-summer months would be 87 cents and $1.04 during June, July and August when the higher summer rate is in effect.
The commission has the authority to accept, deny or modify the company's proposal. State statute requires that regulated electric utilities be allowed to recover all prudently incurred expenses in addition to a rate of return that must be reasonable for customers, but enough to attract capital investment in new transmission, distribution and generation.
The commission will proceed under a modified procedure that allows this case to be handled through written public comments rather than by public hearing.
Be heard Comments on the proposed rate increase will be accepted via e-mail by accessing the commission's homepage at www.puc.idaho.gov and clicking on "Comments & Questions." Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.
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Copyright (c) 2008, The Times-News, Twin Falls, Idaho
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