BOISE, Idaho, Dec. 12, 2011 /PRNewswire/ -- Today, Idaho Power Company (Idaho Power), a wholly owned subsidiary of IDACORP, Inc. (NYSE: IDA), filed a settlement stipulation with the Idaho Public Utilities Commission (IPUC). This filing related to the request included in its original Nov. 2, 2011 IPUC application, which sought to continue Idaho Power's ability to use deferred investment tax credits to help achieve a minimum return on year-end equity in the Idaho retail jurisdiction. The Dec. 12, 2011 settlement stipulation was executed by Idaho Power, the IPUC Staff, and one large industrial customer of Idaho Power and is subject to review and approval by the IPUC.
If the settlement stipulation is approved as filed, Idaho Power will be allowed to amortize additional deferred investment tax credits if the company's earnings fall below a 9.5 percent return on Idaho jurisdictional year-end equity for the years 2012, 2013 and 2014. Idaho jurisdictional earnings exceeding 10 percent and up to 10.5 percent will be shared equally between the Idaho customers and Idaho Power and earnings above 10.5 percent will be shared 75 percent to Idaho customers and 25 percent to Idaho Power. This settlement modifies the original filing by extending the agreement term from 2 to 3 years and increases the amount of potential benefit for Idaho customers.
The settlement stipulation provides that the requested return on year-end equity thresholds (9.5 percent, 10.0 percent, and 10.5 percent) will be automatically adjusted in the future in the event the IPUC approves a change to Idaho Power's authorized return on equity as part of a general rate case proceeding seeking a rate change, other than a single-issue rate case proceeding, such as one relating to Idaho Power's Langley Gulch power plant.