Item 8.01 Other Events.
On
The proposed rates under the settlement agreement are designed to increase
annual base electric revenues by
For natural gas, the proposed rates under the settlement agreement are designed
to decrease annual base natural gas revenues by
The parties have agreed to use the customer tax credits included in the Company's original filing to offset overall proposed changes to base electric and natural gas rates over the two-year plan. The revenue increases described above are net of this offset.
The primary element of the difference in the agreed upon base revenues in the
settlement agreement from the Company's original request is the continued
recovery of costs for the Company's wind generation power purchase agreements,
which will include Palouse Wind and Rattlesnake Flat, through the Power Cost
Adjustment mechanism rather than through base rates, as well as reductions in
overall net power supply costs, together totaling
The settlement is based on a 9.4 percent return on equity with a common equity ratio of 50 percent and a rate of return on rate base of 7.05 percent.
The Company's original request included an increase of annual electric base rate
revenues of
The recommendation to the IPUC by the parties to approve the settlement agreement is not binding on the IPUC itself.
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