June 30, 2008

Idaho Power Files for Electricity Base Rate Increase

Idacorp's principal subsidiary, the Idaho Power Company, has filed an application with the Idaho Public Utilities Commission to increase the company's base rate for electricity by an average of 9.9% for its Idaho customers.

If approved, company revenues would increase $67 million annually. The Idaho Public Utilities Commission (IPUC) has seven months to consider the company's request.

Since 2005, the company has reportedly invested $578 million in its electrical system. This includes construction of 13 new substations, adding 1,157 pole-miles of distribution line, and 190 pole-miles of transmission lines.

Operating and maintenance expenses have also increased over the period driven by increased levels of power purchases, continued customer growth and inflation.

Ric Gale, Idaho Power's vice president for regulatory affairs, said: "Two forces are driving this increase; growth in the number of customers and a growing demand for electricity. We have invested heavily to ensure we can provide a safe and dependable supply of energy for our current and future customers. This request seeks to recover those investments."