Idaho Power cites 3 factors behind higher electricity bills

TWIN FALLS, Idaho (KMVT/KSVT) — Community members in southern Idaho have expressed concerns online about higher electricity bills.

Jordan Rodriguez, communications spokesman for Idaho Power, said there are three major factors playing a part in those higher bills.

The first factor is a general rate case that went into effect Jan. 1. The Public Utilities Commission approved a 10% rate increase, which Idaho Power requested to help fund infrastructure upgrades.

“If you’ve been driving around and see all the cranes and all the new buildings and all the new neighborhoods going up, we are building a ton of new infrastructure to serve that load, and also just to maintain and make more resilient our existing infrastructure,” Rodriguez said.

The annual Power Cost Adjustment, also known as PCA, is the second factor Rodriguez mentioned. He said the adjustment took place June 1 with a 3% increase, which was driven up because of dry conditions and a lack of water across the state.

“The biggest driver for that was we are having a low water year, or a series of low water years, which decreases how much hydro we can produce, and hydro power is our most cost-effective resource that we have. So when we can’t produce as much hydro, we have to get that energy from other places,” Rodriguez said.

The third factor, Rodriguez said, is that demand in the summer months is always higher.

“We’ve had a very hot summer, we’ve had the bad air quality, the smoke in the air, probably more people spending time inside, and so usage is higher for the average customer,” Rodriguez said.

Programs available to customers

Unplugging household items when not in use can help lower electricity bills, and Rodriguez said there are programs through Idaho Power that can make paying that bill easier.

“Budget pay can be really useful for people if having a spike month is problematic for your household budget, so that can make it so you pay the same amount every month, and what it does is it takes your usage over a full year and basically takes your electric bill for an entire year and breaks it into 12 equal payments,” Rodriguez said.

Idaho Power also offers energy efficiency programs, which include tips and, in some cases, incentives or discounted purchases to upgrade home efficiency. The company also offers bill assistance programs, including Project Share, administered by the Salvation Army, which is funded in part by customer contributions and company money for qualified customers. Other bill assistance options include payment arrangements, depending on income qualifications.

Rodriguez said Idaho Power’s rates are 20% to 30% lower than the national average.

Outlook for PCA and 2026 rates

As far as the PCA goes, Rodriguez said the state needs a heavy snow-packed winter to boost hydropower generation. Looking ahead, Idaho Power has not filed a general rate case for 2026.

“So there won’t be an increase related to a general rate case for customers effective next year, so that’s some good news,” Rodriguez said.