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Power rates are rising, but if you conserve, your bill may drop

A three-tiered schedule, with higher rates in the summer, takes effect Sunday. Energy-efficient bulbs and insulation will also save you money.

BY ROCKY BARKER - rbarker@idahostatesman.com

Published: 01/31/09


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State regulators are letting Idaho Power Co. raise rates again starting Sunday, but the bill for average residential customers will actually drop.

If you're willing to conserve, you can save even more, but if you leave your plasma TV on all day and still use 100-watt incandescent light bulbs, your bill could take a jump.

Q: What happened Friday?

A:The Idaho Public Utilities Commission approved a 3.1 percent rate increase that raised residential rates 1.6 percent. But the three-member panel that oversees investor-owned utilities required Idaho Power to promote conservation with three different rates based on the amount of electricity you use.

Q: What does that mean for me?

A: If you are an average residential customer using 1,050 kilowatt hours of electricity a month your bill will drop to $74.17 from $75.78 - a 1.74 percent decrease.

If you use only 800 kwh a month you will pay even less. If you use more than 2,000 kwh per month you will pay more.

Q: How will this new system work?

A: The three tiers will have higher rates in the summer and lower rates the rest of the year. That means you can save more if you cut your demand in the summer, when most people use air conditioners and the demand for power generation for the company is the highest.

Q: What else can I do to save money through Idaho Power?

A: Idaho Power gives a credit to customers who allow their air conditioner to be turned off briefly during peak use periods.

It also is promoting a series of energy-efficiency measures like using compact fluorescent light bulbs, weather-stripping and increased insulation.

Q: What did the commission do for low-income customers?

It approved a request by the Community Action Partnership Association of Idaho to require Idaho Power to provide $25,000 annually to each of the state's five community-action regions for energy-efficiency education projects.

Q: How does this rate increase hit other customers?

A: Small commercial customers will see only a 0.42 percent increase.

Large commercial customers will pay 3.35 percent more; industrial customers will pay 5.62 percent more; and irrigation customers will pay 6 percent more.

Q: What does this mean for Idaho Power?

A: It is not going to raise as much money as it thought was warranted with continuing growth in customers and power demand.

The company asked to increase its annual revenue requirement by $66.6 million. But the commission authorized only a $20.87 million increase.

"This outcome is disappointing ... (and) does not reflect the true cost of providing electrical service," said Idaho Power spokeswoman Echo Chadwick.

"It negatively impacts the financial health of our company at a time when access to capital is critical to fund projects that support our state as it moves out of economic turmoil toward economic growth."

Rocky Barker: 377-6484

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