Hydroelectricity Keeps Your Energy Clean, Affordable in 2017, Nearly Half of the Energy Natural Gas and Purchased Power

ConnectionsMay 2018

Page 2 Page 3 Page 3 Page 4 Idaho Power Proposes How Idaho Power’s Energy Tax Reform & PCA Proposals Reserve Your Camping Spot FCA Rate Decrease Portfolio Compares Nationally Result in Lower Customer Prices at an Idaho Power park!

A River Runs Through It Hydroelectricity provided by the mighty Snake River forms the backbone of Idaho Power’s low-cost, low-carbon energy portfolio.

Hydroelectricity Keeps Your Energy Clean, Affordable In 2017, nearly half of the energy natural gas and purchased power. For Information Administration (EIA). Idaho Power produced came from 2017, Idaho Power’s portfolio shows a “I think it’s impressive that so much 17 hydro plants on the Snake River continued decrease in carbon emissions of our state’s electricity is generated and its tributaries. while positioning the company as by the Snake River,” said Pocatello one of the nation’s highest percentage customer Skyler Shippen. “It’s great Idaho Power customers enjoy some of the generators of hydroelectricity. lowest energy rates in the country. But that hydroelectricity helps Idaho Power have you ever thought about where your Hydroelectricity accounted for 49.5 keep our rates lower and reduce carbon electricity comes from? percent of Idaho Power’s 2017 portfolio. emissions, especially when we have a In addition to being clean and renewable, good water year.” Each spring, Idaho Power publishes its hydro is the company’s most cost- energy portfolio from the previous year. Over the past decade, hydro has effective resource. At nearly 50 percent, accounted for 47.2 percent of Idaho The portfolio shows which resources were Idaho Power’s hydro generation far used to produce or obtain electricity, with Power’s annual generation. The 2017 outpaces the 7.5 percent national average, hydro percentage was the company’s data broken down by hydroelectric, coal, according to data from the U.S. Energy (continued on page 2)

Like us at facebook.com/idahopower • Follow us at twitter.com/idahopower (@idahopower) • Watch us on youtube.com/idahopower News Feed Affordable Energy(continued from page 1) Idaho Power Proposes Rate highest since 2012 — and the is necessary for reliability of the current snowpack should grid. These plants combined to Decrease Through FCA continue to benefit our region produce 26.7 percent of the energy Idaho Power recently filed its annual Fixed this year. in Idaho Power’s 2017 portfolio. Cost Adjustment (FCA) with the Idaho Public “Hydro generation is a low-cost, Coal generated 18.3 percent (down from 24.4 percent in 2016), Utilities Commission (IPUC). In the FCA, low-carbon resource that varies while natural gas accounted Idaho Power proposes a rate decrease that, if from year to year depending on for 8.4 percent (down from 10.4 approved by the IPUC, would save the average snowpack,” said Tess Park, Idaho percent in 2016). Idaho residential customer $3.60 on their Power’s Vice President for Power monthly energy bill starting June 1. Coal Supply. “In 2018, we are poised Nationally, natural gas (31.7 18.28% Fixed costs cover infrastructure and to have a near-normal snowpack. percent) and coal (30.1 percent) administrative costs, including power lines, That, coupled with carryover in make up more than 61 percent substations and billing services. The FCA reservoirs from an above-normal of utilities’ average resource adjusts prices up or down based on customer 2017, should result in another portfolios, according to the EIA. energy use in the previous year. In 2017, Idaho year where Idaho Power’s hydro Relying less heavily on thermal Power’s energy efficiency programs saved resources provide lots of low- generation helps reduce carbon enough electricity to power nearly 17,000 cost, low-carbon energy to our emissions, which is important homes for a year. Despite the increase in energy customers.” to Idaho Power. In 2009, the efficiency, residential and small general service Hydro is one of several renewable company set a goal to reduce customers will experience a reduction in the resources in Idaho Power’s its CO emissions intensity — surcharge because usage per customer in 2017 2 portfolio. In 2017, energy the amount of CO2 produced was greater than it was the year before. purchased under long-term per megawatt hour of energy Visit our YouTube channel to watch a video contracts from wind, solar and generated — by 10 to 15 percent about how the FCA works. other generation resources compared to 2005 levels. That accounted for an additional goal has been met and extended youtube.com/idahopower 18.7 percent of the portfolio mix. multiple times since then, and the Idaho Power sells the Renewable current target is to keep emissions Energy Credits (RECs) from intensity 15 to 20 percent below long-term purchases of renewable 2005 levels through 2020. Summer Rates Start June 1 energy and uses the proceeds to Idaho Power’s emissions Idaho Power reminds customers that summer help keep customer rates as low continued a downward trend in rates go into effect June 1. Our service area as possible. Thus, the company 2017. The company set new lows does not state that it delivered that experiences its highest demand for energy for overall CO2 emissions and in the summer, so rates increase during the renewable energy to customers — emissions intensity for the year. though it does support alternative months of June, July and August — inlcuding “We feel really good about our energy sources by passing along what Idaho Power pays for energy on the carbon-light portfolio,” said market. credit to the organizations that Adam Richins, Idaho Power’s Vice purchase the RECs. For tips that can help you save energy and President of Customer Operations money this summer, watch a series of short Among long-term purchases, and Business Development. videos with energy advisor Dave Spillett on our wind makes up the largest portion “There are states and cities YouTube channel, or visit our website. of the mix at 10 percent of total spending millions to get what generation, followed by solar (3.2 we already have. Perhaps more percent), small hydro (2.8 percent) importantly, we have been able and geothermal (1.4 percent). to substantially reduce carbon Most of Idaho Power’s remaining emissions while maintaining reliability and some of the lowest generation comes from thermal rates in the nation.” power plants—three natural gas- fired plants the company owns The graphs to the right show and three coal-fired plants in Idaho Power’s 2017 resource which it is part-owner. Together portfolio and how it compares with hydroelectric plants, thermal to the national average. For more resources provide an important information, visit our website. baseload component to Idaho idahopower.com/energysources idahopower.com/save Power’s resource supply, which

2 Idaho Power’s 2017 Energy Portfolio By the Hydroelectric Numbers 49.54% RESIDENTIAL IMPACT Idaho Power Proposes Price Reductions Through PCA,Tax Reform Filings

Coal 1.29% 18.28% Proposed PCA Reduction 2.15% Other Proposed Tax Reform Reduction Natural Gas Purchases 8.37% 5.10% Long-Term Purchases 18.71%

The breakdown of our long-term purchases: 3.60% Proposed FCA Reduction Geothermal 1.43% Biomass 0.78% Hydro 2.85% Other 0.39% Wind 10.02% Solar 3.23%

Idaho Power is committed to supporting renewable energy sources such as wind and solar, and we buy them as part of our portfolio mix. In turn, we sell the Renewable Energy Credits (RECs) we get from these purchases to offset power supply 7.04% costs and keep customer prices as low as possible. Total Proposed Reduction Idaho Power proposed rate decreases for its The buyer of the REC gets to claim that power as part of its energy. Therefore, we do not represent that electricity produced Idaho customers this spring through the by this resource mix is being delivered to our retail customers. annual Power Cost Adjustment (PCA) and stemming from recent federal and Idaho state We do support these alternate energy sources, and we pass along that credit to the organizations that buy the RECs from us. tax rate changes. Pending approval from the Idaho Public National Average Utilities Commission (IPUC), both rate decreases will go into effect on June 1. When combined with the proposed annual Fixed Hydroelectric 7.5% Natural Gas 31.7% Cost Adjustment (FCA) referred to on page 2, the proposals result in a total rate decrease of 7.04 percent for Idaho residential customers. Power Cost Adjustment The PCA is a cost-recovery tool that passes on both the benefits and costs of supplying energy to Idaho Power customers. The amount all Idaho customer classes pay for Coal 30.1% Nuclear 20.0% electric service will decrease by $22.6 million; a main driver of the PCA being a decrease in 2018 is that last year’s actual power supply costs were less than anticipated, primarily due Other 0.5% Fuel Oil 0.5% to better-than-expected water conditions. Non-Hydro Data Source: U.S. Energy (continued on page 4) Renewables 9.6% Information Adminstration 3 By the Numbers (continued from page 3) Tax Reform According to an agreement between Idaho Power, IPUC staff and the Industrial Customers of Idaho Power, customers will see a total benefit associated with reduced tax expense of $33.9 million, provided through: 1) a base rate reduction of approximately $18.7 million, 2) an additional $7.8 million decrease that will be provided Now you can go online to reserve campsites at most through the 2018 PCA, and 3) a non-cash annual benefit of $7.4 million in the form Idaho Power campgrounds! of an offset to other deferred costs. Combined Impact Whether you’re looking for the perfect spot for fishing, boating, geocaching or just sleeping under the stars, Idaho Power’s FCA (filed earlier this spring) proposed a $19.3 million you can find it at one of Idaho Power’s parks. decrease for Idaho residential and small general service customers. If all three Visit idahopower.com/recreation proposals are approved by the IPUC and reserve your spot! as filed, residential customers will see a total price decrease of 7.04 percent effective June 1, 2018. All customer classes will see the following effects: COMBINED EFFECT OF ALL THREE FILINGS Visit. Explore. Play. Percentage Change from Current Billed Revenue Small Large Large Residential General General Irrigation Power2 Service Service1 FIXED COST ADJUSMENT (FCA) -3.60% -3.73% N/A N/A N/A POWER COST ADJUSMENT (PCA) -1.29% -0.80% -2.20% -3.27% -1.91% TAX REFORM FILING -2.15% -2.10% -2.29% -2.25% -2.33% COMBINED IMPACT3 -7.04% -6.63% -4.48% -5.52% -4.25%

1 Includes lighting schedules; 2 Includes special contracts 3 Totals may not add up exactly due to rounding Connections is published monthly to inform From The Electric Kitchen May 2018 our customers about services we provide, programs we offer and industry issues impacting Dinner our service area in southern Idaho and eastern Sautéed Bok Choy Oregon. Our goal is to engage and inspire you with Shiitake Mushrooms to learn more about Idaho Power and how we Dietary information are working together to meet your energy needs per serving: 6 heads of baby bok choy, 1 tsp fresh ginger, grated today and tomorrow. chopped into 1-inch pieces ¼ cup chicken broth Calories: 78 2 shiitake mushrooms, sliced 1 Tbsp soy sauce Fat: 5.8 g Comments or questions are welcome 2 Tbsp vegetable oil 1 Tbsp sesame oil Carbohydrate: 5.8 g at idahopower.com/contactus 5 large garlic cloves, crushed Protein: 3.2 g or Corporate Communications Sodium: 149 mg P.O. Box 70, Boise, ID 83707 Potassium: 676 mg Heat oil in a pan over low heat. Add garlic and ginger, stirring until fragrant. Fiber: 2 g Increase heat to medium and add mushrooms. Cook until mushrooms begin Cholesterol: 0 mg to soften, then add the bok choy. Raise heat to medium-high and add chicken stock. Cover and allow to simmer for 15 minutes, stirring regularly. Remove lid Recipes are selected for nutritional value and low and finish cooking until bok choy is wilted and tender. Drizzle with soy sauce energy use in preparation. They are approved by and sesame oil just before serving. Makes 6 servings. Registered Dietitian Erin Green from the Central District Health Department in Boise.

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