TWIN FALLS, Idaho (KLIX) – Idaho Power says it has proposed three rate decreases that could save residential customers some money.

The proposals were filed in March and April, respectively, and have to be approved by the Idaho Public Utilities Commission. If approved, residential customers could start seeing a reduction in their bills by June.

“The utilities commission will issue a decision and, assuming the rates are accepted as filed, will go into effect by June 1,” said Jordan Rodriguez, a company spokesman.

He said the overall reduction would be 7.04 percent.

Two of the proposals come from annual mechanisms—the Fixed Cost Adjustment (FCA) and Power Cost Adjustment (PCA) – and a third stems from recent federal and Idaho state tax-rate changes, according to information provided by Rodriguez.

The file to the FCA “requests a decrease of approximately $19.3 million for residential and small general service customers. Residential customers will see a 3.60 percent decrease.”

The file to the PCA “proposes a $22.6 million decrease for all Idaho Power customers. Residential customers will see a 1.29 percent decrease.”

The different mechanisms help the utility company determine if rate increases are needed or if decreases are needed.

“The mechanisms allow us to adjust rates up or down on an annual basis,” Rodriguez said. “This year there's a decrease in both.”

Tax reform changes … call for a total customer benefit of $33.9 million, provided through: 1) a base rate reduction of approximately $18.7 million, 2) an additional $7.8 million decrease that will be provided through the 2018 PCA, and 3) a non-cash annual benefit of $7.4 million in the form of an offset to other deferred costs. Residential rates will decrease 2.15 percent.

The last decrease was in 2015, he said.