Idaho Power proposes general rate increase

Published 10:50 am Tuesday, June 3, 2025

Idaho Power Co. headquarters in Boise. The utility has requested a 13.09% overall rate increase that could take effect as soon as January. (Brad Carlson/Capital Press file)

Idaho Power requests a 13.09% overall rate increase that could take effect as soon as January.

The Boise-based utility filed a general rate case with the Idaho Public Utilities Commission. In a general rate case, which is separate from annual cost adjustment filings, the commission reviews the costs of operating and maintaining the utility system and how those costs are allocated among customers.

Idaho Power requests an overall increase of $199.1 million. Proposed rate increases by service category are 17.35% for residential, 17.32% for irrigation, 17.31% for small general service, 8.22% for large power and 7.26% for large general service, according to a news release.

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Requested additional revenue includes $73 million for energy production and storage resources, $53 million for grid investments, $25 million for wildfire resilience, $20 million for labor and $28 million for other investments.

The energy production and storage component includes “investing in the continued safe, reliable operation of existing generation facilities” and installing additional batteries to improve system reliability and capacity, according to the release. Grid investments would include upgrading, replacing or constructing new power lines, substations and other infrastructure necessary to “ensure safe, reliable operations.”

Wildfire resilience spending would include “the equipment, technology and resources necessary to prevent fires, protect communities and to make Idaho Power’s system more resilient to wildfire,” according to the company. The “other investments” category includes investment in technology resources, fleet vehicles, office and operational facilities and other expenses “necessary to run a healthy and effective utility.”

Establishing new general rates “will ensure Idaho Power covers the costs of safely and reliably providing electric service,” according to the release.

The general rate increase request reflects “unprecedented levels of capital investment necessary” to meet growing demand and maintain existing infrastructure, Idaho Power spokesman Jordan Rodriguez said. New general rates would ensure the company can continue to provide electrical service safely and reliably.

Irrigation, like other categories, sees general growth in demand — which in turn affects the power generation, capacity and “the capital investment involved with that necessary to meet that growing demand,” he said. “We are seeing growth in terms of the number of irrigation customers on our system.”

An irrigation-related billing proposal in the general rate case would define the in-season period as June 1 through Sept. 30 — the same period over which summer rates apply — and the out-of season period as Oct. 1-May 31, Rodriguez said.

Now, the seasonal periods are tied to each irrigation customer’s meter reading cycle. An irrigator on the early end of the cycle could have an in-season period from the end of April to the end of August, while an irrigator on the late end of the cycle could have an in-season period from the end of May to the end of September, he said.

“There could be significant differences in how customers are billed, in versus out of season,” Rodriguez said. The proposed change “is intended to put everyone on the same dates” to make the system more consistent and understandable for customers and simpler for the company to manage.

Irrigation in season comes with a lower kilowatt hour rate and a demand charge, he said. Irrigation out of season involves a higher kilowatt hour rate, no demand charge and a lower service charge.

Idaho Power filed a general rate case in 2023 and a limited-scope rate case in 2024. The commission will review and take public input on the current case.

General rate case detail: https://puc.idaho.gov/case/Details/7527

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