Idaho Power Receives Approval to Increase Rates by Over $50 Million

Idaho Power will implement new tariffs that will result in a 3.7 percent, or $50.6 million, annual increase in Idaho jurisdictional revenue. The rate increase is significantly lower than the company’s initial request of about $99.3 million.  The new rates take effect at the start of 2025, in line with orders from the Idaho Public Utilities Commission issued on Dec. 31,2024.

In its rate increase request filed with the  commission on May 31, 2024, Idaho Power stated that the revenue from the current rates is insufficient and does not cover higher labor costs, planned investments, and other inflationary pressures. If the application has been approved as Idaho Power filed, rates would have increased by between 7.25 and 9.5 percent for residential, large power and irrigation, and small and large general service consumers.

The rate issued by the commission is based on a January through December 2024 test year using an Average of Monthly Averages rate base methodology. Idaho Power in the application stated that it aims to spend around one billion U.S. dollar on its systems and technologies during 2024 and on average $796 million during the next five years, in order to fulfill higher customer demand and ensure a reliable electric system.

The commission received 60 public comments in this case, with the vast majority of comments opposing any rate increases. Moreover, the comments also highlighted that the Idaho Power was recently granted a rate increase that became effective at the start of 2024. Idaho Power had received approval in a separate case to increase its overall rates by 4.25 percent or increase revenue by $54.7 million. It had initially filed an application for an increase of 8.61 percent or $111 million. Idaho Power stated in that case that it needed the higher revenue to recover expenditure it spent on infrastructure additions over the last decade.