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

November 14, 2025

After three years of negotiations with the Bonneville Power Administration (BPA), Idaho Falls city leaders approved a 20-year power supply contract that will continue to keep local electric rates stable and affordable for years to come.

“Idaho Falls Power is a city-owned utility and a tremendous asset to our community. City elected officials always strive to protect our community from the ups and downs of the energy market,” said Idaho Falls Mayor Rebecca Casper. “This contract, paired with our soon to be operational Peaking Plant, gives us the flexibility to adapt to unpredictable energy markets, keep monthly bills low and help meet future energy needs.”

Idaho Falls Power operates four city-owned hydroelectric plants on the Snake River, which generate about one-third of the community’s electricity. Most of the remaining power (approximately 60%) comes from power purchased through BPA, which distributes energy from federally owned dams throughout the Northwest. Any remaining energy needs are purchased on the wholesale energy market.

“Idaho Falls Power has a long history of building on the past to address the needs of the future,” said Stephen Boorman, Interim General Manager of Idaho Falls Power. “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.”

Based on predicted energy prices and the value of the federal generation resources, Idaho Falls Power estimates that ratepayers will save around $105 million over the life of the contract versus purchasing energy on the open market. Combining this guaranteed energy allocation, with the stability of our existing hydro resources and the recently completed Peaking Plant, IFP has greatly reduced our exposure to volatile market prices.

“For 125 years, Idaho Falls Power has focused on providing customers with power to light our homes and power our economy,” Lisa Burtenshaw, City Council president said. “One of our goals has always been to protect ratepayers from unpredictable energy costs, and this agreement along with our newly constructed Peaking Plant, ensures reliable, affordable power for decades.” Idaho Falls Power customers already benefit from some of the lowest electric rates in the country, just over 7 cents per kilowatt-hour, which is less than half the national average.

Idaho Falls Power’s strong financial position, city-owned generation resources and long record of successful operation under past BPA contracts provide a solid foundation for the future. The utility’s ability to manage risk while maintaining dependable service continues to make it one of the most stable and community-focused power providers in the region.