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Commission Approves Rate Increase for Langley Gulch Power Plant

 

September 26, 2012 (2012-011)

Contacts:  Susan Ackerman, Chair, 503 378-6611, Stephen Bloom, Commissioner, 503 378-6611, John Savage, Commissioner, 503 378-6611, Bob Valdez, Public Affairs Specialist, 503 378-8962
 
Salem, OR. Rates will change for Idaho Power customers in Oregon effective October 1, 2012. The utility’s roughly 18,500 customers will see their rates increase overall by 6.9 percent following the Commission’s approval of a settlement for Oregon’s share of costs for the Langley Gulch Power Plant. The actual amount will vary depending on customer class.
For the typical Residential Customer using 1,225 kWh per month, the impact will be an increase of $6.37, which is a 5.71 percent increase.

The Langley Gulch Power Plant, located in rural Payette County in Idaho, is a combined-cycle combustion turbine that uses two turbines to generate electricity—one with natural gas, the other steam. The generating capacity ranges from 330 megawatts in winter and 300 megawatts in the summer.
The settlement was between Commission staff, the Citizens’ Utility Board, and Intermountain Power Producers Association. The settlement stated that the investment was prudent and should be included in the utility’s rate base.

 

Rate base is the value of a utility's assets used to determine the rates the utility is allowed to charge its customers.

 

The stipulation found fault with the way Idaho Power obtained the resource because it did not come before the Oregon Commission to review requests for proposals before asking for bids for the project.
 
Idaho Power has committed to submit all future resource acquisitions subject to competitive bidding guidelines to the Commission for a full and complete review.
 
 
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