City of Idaho Falls signs long-term agreement to keep local energy affordable and reliable

IDAHO FALLS ~ Idaho Falls City Leaders Approve 20-Year Power Supply Contract with BPA to Keep Electric Rates Stable and Affordable

After three years of negotiations, Idaho Falls city leaders have approved a 20-year power supply contract with the Bonneville Power Administration (BPA). This contract will ensure that local electric rates remain stable and affordable for the next two decades.

The decision was announced by Idaho Falls Mayor Rebecca Casper, who emphasized the importance of protecting the community from the unpredictable energy market. "Idaho Falls Power is a city-owned utility and a tremendous asset to our community," said Mayor Casper. "City elected officials always strive to protect our community from the ups and downs of the energy market."

Under this new contract, Idaho Falls Power will continue to operate four city-owned hydroelectric plants on the Snake River, which currently generate about one-third of the community's electricity. The remaining power, approximately 60%, will be purchased through BPA, which distributes energy from federally owned dams throughout the Northwest. Any additional energy needs will be purchased on the wholesale energy market.

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Stephen Boorman, Interim General Manager of Idaho Falls Power, expressed his confidence in this long-standing partnership with BPA. "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," he said.

According to estimates by Idaho Falls Power, ratepayers can expect to save around $105 million over the life of this contract compared to purchasing energy on the open market. This is due to predicted energy prices and the value of federal generation resources.

Lisa Burtenshaw, City Council President, highlighted one of their main goals in securing this contract: protecting ratepayers from unpredictable energy costs. She also noted that this agreement, along with their newly constructed Peaking Plant, will ensure reliable and affordable power for decades to come.

Idaho Falls Power customers already benefit from some of the lowest electric rates in the country, at just over 7 cents per kilowatt-hour, which is less than half the national average. This is a result of the utility's strong financial position, city-owned generation resources, and successful operation under past BPA contracts.

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With this new contract in place, Idaho Falls Power remains one of the most stable and community-focused power providers in the region. Their ability to manage risk while maintaining dependable service has solidified their position as a reliable source of affordable electricity for the community.

This decision by Idaho Falls city leaders to approve a 20-year power supply contract with BPA is a testament to their commitment to providing stable and affordable energy for their residents. With this partnership in place, residents can rest assured that their electric rates will remain steady for years to come.

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