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

December 04, 2025

IDAHO FALLS, ID, December 4, 2025 – Today marked a historic moment for our community-owned utility as Idaho Falls Power celebrated the formal launching of its new natural gas peaking generation plant. This represents a major milestone in its 125-year legacy of reliable, affordable energy. “Since lighting the city’s first streetlamp more than a century ago, Idaho Falls Power has upheld a commitment to innovation, fiscal responsibility and low electricity rates,” said Mayor Casper. “This new facility carries that tradition forward.”

The new peaking plant is a $36-million investment that adds a 17.5-megawatt on-demand power resource. The City Council, acting in its role as the utility’s governing board, approved the construction contract in early 2024 with ESI, an Idaho-based company, ensuring the project remained local in planning and execution. “We were incredibly fortunate to have ESI as our partner for the construction of this building,” said Alan Cunningham, Project Manager. “ESI, worked closely with us through all phases. Their responsiveness was a critical component to the design build strategy that we chose.”

ESI Executive Vice President Michael Papac added, “ESI and our design and trade teams are honored to be a partner with Idaho Falls Power in the planning, design, and construction of 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.”

Designed to dispatch electricity during periods of high-demand, typically experienced during the hottest summer days and coldest winter nights, the plant gives IFP the ability to generate electricity locally when expenditures on the open wholesale market would otherwise spike. “With this additional capacity, IFP can reduce its reliance on external market purchases during critical times, strengthening local control and price stability for our community and be part of the solution for regional capacity concerns,” said Interim General Manager Stephen Boorman.

One of the core goals behind this new plant is to help protect ratepayers from volatile power-market pricing. Because Idaho Falls Power has effectively operated its own hydropower system and is now adding local generation capacity, residential customers pay approximately 7 cents per kilowatt hour, which is 50 percent less than the U.S. average. By generating more of its own electricity, the utility is better positioned to keep monthly rates stable and predictable.

Idaho Falls Power already operates four dams along the Snake River, which today provides about one-third of the city’s energy needs. However, with growth in population and commercial activity, and the variability of river flows in winter, the new plant addresses a growing need, while offering space for future research and a substation if energy demands dictate.

The seven Caterpillar (CAT®) generators, which currently burn natural gas, were chosen for their cost-effectiveness and lower emissions, and are designed to run on lower carbon emitting hydrogen fuel blends when they become commercially viable. IFP worked closely with Idaho Department of Environmental Quality to meet regulatory guidelines, spending significant time and money installing state-of-the-art emission systems, which are expected to keep emissions well beneath the upper limit threshold, ensuring the cleanest operation possible and leaving room for future expansion if needed. “Providing for low emissions and ensuring minimal environmental impact were important factors in securing unanimous Council support the project,” said Boorman.

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, helping safeguard ratepayer interests. “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. Highly favorable borrowing terms reduce the long-term costs for IFP customers, while supporting grid system reliability and energy independence.

“We are proud to serve our community and its commitment to energy innovation,” said Boorman. “We have a rich history in looking towards the future and investing in the appropriate infrastructure.” As Idaho Falls Power enters its next 125 years, this investment underscores its steadfast promise: reliable service, smart infrastructure and low-cost power for all our customers.