As a result of concern regarding the need to provide for increasing customer demands, the need to replace aging facilities, the evolving changes in the electric industry and the increasing competitive environment, IID has continued to invest in new, efficient and environmentally compliant facilities, while implementing cost cutting measures to reduce costs incurred in daily operations of the electric system. In addition, based upon IID policy and economic factors, including (i) changes in projected operating costs, (ii) the acquisition and construction of two new simple cycle combustion turbine units located at the new Niland Generation Station; (iii) financing a portion of Electric System capital improvement program; (iv) revised load growth projections, and (v) the need to review its rate structures, the IID board of directors authorized the preparation of the 2009 Electric Cost of Service Study in Resolution No. 2-2008. 

The following, Phase II of the 2009 Electric Cost of Service Study addresses a projected one year period with the calendar year ending December 31, 2009.