Idahoans' electric bills could rise by 3% this year

BOISE — Idaho Power filed for its annual spring cost adjustments with the Idaho Public Utilities Commission this week.

If approved, the combined effects of two distinct adjustments would result in an average increase of 3.15% in billing for all customers. 

According to Idaho Power, this year’s power cost adjustment (PCA) increase results from a “lower forecasted hydropower,” an expectation arriving in the wake of Idaho observing record-low snowpack and a statewide drought emergency declaration earlier this week. 

Idaho Power spokesperson Jordan Rodriguez said that while a variety of factors play into the annual cost adjustments, the status of Idaho’s water supply, and the state’s snowpack in particular, is usually the “biggest driver” in whether power costs increase or decrease.

Today, Idaho Power operates 17 hydroelectric plants that account for the largest share of the company’s electricity generation at 36.9%, well above the national average of 5.5% for hydroelectric power.

“Hydro is our most cost-effective resource that we have,” Rodriguez said. “So, generally low water years lead to a less favorable forecast for the PCA.”

If approved by the Idaho Public Utilities Commission, this year’s PCA would increase costs for Idaho Power customers by $51.65 million, or an average 3.02% billing increase. The adjustment is effective from June 1 through May 31, 2027.