The Idaho Public Utilities Commission has approved a settlement agreement that allows Idaho Power Co. a $13.3 million rate increase associated with the early retirement of the coal-fired North Valmy Station, according to a Form 8-K filed June 1.
The costs will be amortized through 2028 with an assumed Idaho Power cessation of coal-fired operations at unit 1 at the end of 2019 and unit 2 at the end of 2025. The costs also include forecast investments for the Valmy plant from 2017-2019 for unit 1, forecast O&M expense savings and decommissioning costs for unit 1 and unit 2.
The PUC also approved a separate settlement stipulation, allowing new depreciation rates for the IDACORP Inc. subsidiary. The rates, however, will result in no required increase in Idaho jurisdictional revenue, the utility said.
The rates will go into effect June 1.
Idaho Power expects that the approved timing of plant investments will help reduce the amount of additional accumulated deferred investment tax credits that the company would otherwise have recorded this year.