Idaho Power proposes $40.66 million rate cut for customers

Boise, ID (CBS2) — Idaho Power has submitted the first of two annual cost adjustments to the Idaho Public Utilities Commission, proposing a rate reduction for residential and small general service customers.

The Fixed Cost Adjustment (FCA) for this year seeks a decrease of $40.66 million, or 5.28%. If approved, a typical residential customer using 950 kilowatt-hours per month could see their monthly bill drop by approximately $6.36 starting June 1.

The FCA is designed to adjust prices based on changes in energy use per customer from the previous year. It acts as a true-up mechanism, separating energy sales from revenue to eliminate financial disincentives for Idaho Power to invest in demand-side management. This approach supports energy efficiency and education programs without negatively impacting the company’s finances.

In 2024, Idaho Power’s energy efficiency initiatives saved 143,537 megawatt hours, enough to power about 12,600 average-sized homes for a year. The FCA enables the company to recover an authorized level of fixed costs, such as those for generation plants and power lines, per customer. If collections exceed the authorized amount, customers receive a credit; if less, a surcharge is applied.

The final impact on customer bills will be determined after the Power Cost Adjustment (PCA) is filed on April 15.