Open Houses set for Aug. 12 to discuss IFP’s proposed new rate structure
Following Bonneville Power Administration’s (BPA) release of their final record of decision on their rate case, Idaho Falls Power (IFP) is putting the finishing touches on its cost of service analysis to prepare an electric rate action for the City Council to adopt with the FY15-16 budget.
Power purchases from BPA are the largest expenditure in IFP’s budget, roughly 41% of the budgeted expenses for the upcoming fiscal year. In a July 23 press release, BPA announced the rate increase for power and transmission rates for the two year period, beginning October 1. The end result for Idaho Falls Power will be an increase in BPA power supply costs of approximately $2.0 million annually. Normally Idaho Falls Power would pass along that increase to its customers. But this year is not a normal year.
“In 2015, we retired the debt associated with our locally-owned hydropower plants. With those debt payments off the books and in light of other efficiency measures we have implemented, we intend to absorb the rate increase from BPA and pass along a reduction in the consumptive use rate,” said Jackie Flowers, Idaho Falls Power general manager. “Most customers will see a decrease in the electric portion of their utility bill.”
Under IFP’s proposed new rate structure, the average residential customer would see approximately a 6 percent reduction on their electric bill, from $72.50 to $68.50. Actual rate impacts will depend upon electric consumption.
IFP’s proposed rate structure will be discussed at the August 10 City Council work session. Following that, IFP will host three open houses on August 12, inviting customers to their office at 140 S. Capital Ave. to learn how the utility sets rates and hear more details about the proposed changes to rate structure. Open house times will be 10 a.m., 2 p.m., and 8 p.m.
In the meantime, please go here for more information about the proposal, or call IFP offices at 612-8430 at any time.