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

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

ESI Executive Vice President Michael Papac also shared his excitement about working with Idaho Falls Power on this innovative facility. "Idaho Falls Power's commitment to their customers is evident in the bold implementation of plans 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 reduce IFP's reliance on external market purchases during critical times and provide stability for local control and pricing for the community. Interim General Manager Stephen Boorman emphasized that this was one of the core goals behind building this plant - protecting ratepayers from volatile power-market pricing.

Idaho Falls Power already operates four dams along the Snake River, which currently provides about one-third of the city's energy needs. However, with population growth and variability in river flows during winter months, there was a need for additional local generation capacity. The new plant not only addresses this need but also offers space for future research and a substation if energy demands dictate.

The seven Caterpillar (CAT®) generators, which currently run on natural gas, were chosen for their cost-effectiveness and lower emissions. They are also designed to run on lower carbon emitting hydrogen fuel blends when they become commercially viable. 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. "Providing for low emissions and ensuring minimal environmental impact were important factors in securing unanimous Council support for the project," said Boorman.

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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 not only safeguards ratepayer interests but also supports grid system reliability and energy independence. "IERA was able to secure our revenue bond at an incredibly low rate (3.27%), ultimately saving us millions of dollars over the duration of the loan," said Josh Roos, Chief Financial Officer.

Boorman expressed pride in serving the community and its commitment to energy innovation. "We have a rich history in looking towards the future and investing in appropriate infrastructure," he said. As Idaho Falls Power enters its next 125 years, this investment highlights their steadfast promise of reliable service, smart infrastructure, and low-cost power for all their customers.

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