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Idaho Falls Power celebrates 125 years of community energy with ribbon cutting for new Peaking Plant

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~ Idaho Falls Power, a community-owned utility, reached a significant milestone today as they officially launched their new natural gas peaking generation plant. This $36-million investment is a testament to the utility's 125-year legacy of providing reliable and affordable energy to the community.

Mayor Casper, speaking at the launch event, highlighted the utility's commitment to innovation, fiscal responsibility, and low electricity rates since lighting the city's first streetlamp over a century ago. "This new facility carries that tradition forward," he said.

The new peaking plant, which adds a 17.5-megawatt on-demand power resource, was approved by the City Council in early 2024 with ESI, an Idaho-based company, as the construction contractor. This decision ensured that the project remained local in planning and execution.

Alan Cunningham, Project Manager for Idaho Falls Power, expressed gratitude for ESI's partnership in constructing the new facility. "Their responsiveness was a critical component to the design build strategy that we chose," he said.

ESI Executive Vice President Michael Papac also spoke about their partnership with Idaho Falls Power and their role in planning, designing, and constructing this innovative facility. "We are honored to be a partner with Idaho Falls Power in this project that will make an enduring impact on the community by providing for their energy needs now and into the future," he said.

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The new plant is designed to dispatch electricity during periods of high-demand such as hot summer days and cold winter nights. This will give IFP more control over generating electricity locally instead of relying on expensive purchases from the open wholesale market.

Interim General Manager Stephen Boorman emphasized how this additional capacity will strengthen local control and price stability for the community while also addressing regional capacity concerns.

One of the main goals behind this new plant is to protect ratepayers from volatile power-market pricing. With its own hydropower system already in operation, Idaho Falls Power is now adding local generation capacity to further stabilize rates. Currently, residential customers pay approximately 7 cents per kilowatt hour, which is 50 percent less than the U.S. average.

The seven Caterpillar (CAT®) generators at the new plant were chosen for their cost-effectiveness and lower emissions. They are also designed to run on lower carbon emitting hydrogen fuel blends in the future. IFP worked closely with the Idaho Department of Environmental Quality to meet regulatory guidelines and installed state-of-the-art emission systems to ensure the cleanest operation possible.

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Funding for the project was secured through an agreement with the Idaho Energy Resource Authority (IERA), with terms structured to pay off the investment within approximately 15 years. This will help safeguard ratepayer interests while also supporting grid system reliability and energy independence.

Josh Roos, Chief Financial Officer for IFP, highlighted how securing a revenue bond at a low rate of 3.27% will ultimately save millions of dollars over the duration of the loan. This highly favorable borrowing terms will reduce long-term costs for IFP customers while also supporting their commitment to energy innovation.

"We are proud to serve our community and its commitment to energy innovation," said Boorman. "This investment underscores our steadfast promise: reliable service, smart infrastructure, and low-cost power for all our customers." As Idaho Falls Power enters its next 125 years, this new plant represents their dedication towards looking towards the future and investing in appropriate infrastructure.

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