City of Idaho Falls Approves Long-Term Power Supply Agreement with BPA

The City of Idaho Falls has approved a 20-year power supply contract with the Bonneville Power Administration (BPA) following three years of negotiations. City officials expect the agreement to support long-term rate stability and maintain reliable electric service.

“Idaho Falls Power is a city-owned utility and a tremendous asset to our community. City elected officials always strive to protect our community from the ups and downs of the energy market,” said Idaho Falls Mayor Rebecca Casper. “This contract, paired with our soon to be operational Peaking Plant, gives us the flexibility to adapt to unpredictable energy markets, keep monthly bills low and help meet future energy needs.”

Idaho Falls Power operates four hydroelectric plants on the Snake River, supplying about one-third of the community’s electricity needs. Approximately 60% of the city’s power comes from BPA, which provides energy generated by federally owned dams across the Northwest. Remaining energy requirements are met through purchases on the wholesale market.

“Idaho Falls Power has a long history of building on the past to address the needs of the future,” said Stephen Boorman, Interim General Manager of Idaho Falls Power. “Our city’s self-reliance, technical expertise and commitment to public power makes continuing our 60-plus-year business relationship with BPA a wonderful opportunity.”

Based on projected market conditions and the value of federal hydropower resources, Idaho Falls Power estimates that customers could save about $105 million over the duration of the contract compared to relying solely on open-market purchases. The combination of the BPA allocation, the city’s hydroelectric facilities, and the recently completed Peaking Plant is expected to reduce exposure to market volatility.

“For 125 years, Idaho Falls Power has focused on providing customers with power to light our homes and power our economy,” said Lisa Burtenshaw, City Council president. “One of our goals has always been to protect ratepayers from unpredictable energy costs, and this agreement along with our newly constructed Peaking Plant, ensures reliable, affordable power for decades.” Idaho Falls Power customers currently pay just over 7 cents per kilowatt-hour, which is less than half the national average.

Idaho Falls Power’s financial position, city-owned generation resources, and long history with BPA contracts form the basis for its long-term planning. The utility’s risk management capabilities and focus on consistent service continue to support its role as a stable local power provider.