Idaho Power Slashes Oregon Rates by Nearly 1% in Rare Move
Idaho Power Company has surprisingly requested a nearly 1% reduction in electricity rates for Oregon ratepayers. This move contrasts with the trend across the U.S., where utilities are predominantly seeking rate increases. The reduction, approved on October 9, 2022, is a result of specific changes in the company's operations.
Idaho Power sought $588,295 less in net revenue, leading to an overall decrease of 0.90% in necessary rates. This reduction was made possible by the closure of the second unit at the North Valmy Generating Station and the demolition of another closed coal plant. Meanwhile, the Trump administration's order to keep the J.H. Campbell coal plant in Michigan open could potentially cost ratepayers over $3 billion per year if expanded to cover similar plants set to retire in the next three years.
The Energy Department plans to allocate $625 million to modernize existing coal plants and fund coal projects in rural areas. However, the majority of these funds will come from the gutted Office of Clean Energy Demonstrations. A 73-page DOE study suggested major outages due to coal plant closures, but experts have criticized its assumptions and focus on generation over distribution.
Idaho Power's rate reduction is a rare occurrence in the current U.S. utility landscape. The company's actions, driven by specific operational changes, stand in contrast to the broader trend of rate increases due to load growth and infrastructure needs. The long-term impacts of the Energy Department's coal plant modernization plans remain to be seen.
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