Idaho Public Utilities Commission

Case No. IPC-E-11-24, Order No. 32429

January 19, 2012

Contact: Gene Fadness (208) 334-0339, 890-2712

Idaho Power wants to shift more line extension costs to new customers

BOISE – The Idaho Public Utilities Commission is taking comment through Feb. 2 on an application by Idaho Power Company to remove a cap of 1.5 percent that it can charge new customers in overhead costs for line extensions.

Idaho Power claims the proposed revision is an effort to shift more of the cost for new service attachments from the general body of ratepayers to customers requesting the construction. Such a move, Idaho Power states, would reduce the revenue requirement needed from the general body of ratepayers and reduce upward pressure on rates.

Currently overhead costs, such as pay and expenses for engineering supervisors and administrative workers, are pooled and recouped through an assessment placed on line extension work orders. That assessment is part of Idaho Power’s “Rule H” tariff. All tariff adjustments must be approved by the commission. The current tariff caps the collection for overhead at 1.5 percent. Idaho Power wants the cap removed and asses all overhead expense to the specific customers requesting the construction. According to the company’s calculation, the new rate would be 22 percent to cover the entire overhead expense for line extension construction.

The commission plans to handle this request in a modified procedure that uses written comments rather than conducting a hearing, unless customer comments can demonstrate a need for a public hearing. Comments are accepted through Feb. 2 via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on "Comments & Questions About a Case." Fill in the case number (IPC-E-11-24) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.

A full text of the commission’s order, along with other documents related to this case, is available on the commission’s Web site. Click on “File Room” and then on “Electric Cases” and scroll down to the above case number.

###