Idaho Power Requests Rate Decrease in Annual Power Cost Adjustment

BOISE, Idaho — Idaho Power has filed the Power Cost Adjustment (PCA), the final piece of its annual spring cost adjustments with the Idaho Public Utilities Commission (IPUC). As a net result of the PCA, the Fixed Cost Adjustment (FCA), and an additional filing related to relicensing the Hells Canyon Complex (HCC), all Idaho customers will see a price decrease if the requests are approved as filed.  

A typical Idaho residential customer using 950 kilowatt-hours per month will see an overall monthly decrease of 8.26%, or approximately $9.97— the combined impact of the following:

  • The PCA calls for a decrease of $94.8 million, or 5.89%, for Idaho customers. The PCA is a cost-recovery tool that passes on both the benefits and costs of supplying energy to Idaho Power customers. This year’s PCA requests a monthly bill decrease of $5.79 for the average Idaho residential customer.
  • The annual FCA, filed March 14, requested a decrease of $40.66 million. The FCA applies only to residential and small commercial customers and adjusts prices based on changes in energy use per customer during the previous year. For the average Idaho residential customer, the FCA requested a monthly bill decrease of $6.36.
  • The HCC relicensing request, filed March 14, proposed an increase of $29.7 million to recover ongoing financing costs associated with the project. For the average Idaho residential customer, the request would result in a monthly bill increase of $2.18.

If approved as filed, this combined rate decrease will take effect June 1. The impact of these filings for all Idaho customers is shown in the table below. The actual percentage will depend on a customer’s classification and the rate they pay.

2025 RATE FILINGS
Percentage Change from Current Billed Revenue
FilingRevenue Change (millions)Overall Impact ResidentialSmall General ServiceLarge General Service 1Large Power 2Irrigation
PCA-$94.78-5.89%-4.80%-3.98%-6.57%-8.11 %-5.87%
FCA-$40.66-2.53%-5.28%-5.39%N/AN/AN/A
HCC$29.701.85%1.82%1.84%1.88%1.83%1.90%
Combined Impact 3-$105.74-6.57%-8.26%-7.53%-4.69%-6.27%-3.97%
1Includes lighting schedules; 2Includes special contracts;  3Totals may not sum due to rounding

The PCA has two main components: a balancing account for power costs incurred the previous year and an estimate of what energy will cost in the coming year. The balancing account brings last year’s anticipated costs in balance with costs actually incurred the previous April through March. The estimate reflects Idaho Power’s anticipated fuel costs, purchased power costs, and customer benefits from sales of surplus energy for the coming April through March.

The decrease in this year’s PCA is largely attributed to the completed recovery of 2023 deferred power costs, which was ordered by the IPUC to be recovered over two years. Another contributing factor was increased sales of renewable energy credits, which helps to offset power costs for customers.

Neither Idaho Power nor its shareholders receive any financial return from the PCA — money collected is used to recover costs or credit benefits associated with annual fluctuations in power costs.

Opportunities for Public Review
Idaho Power’s filings are subject to public review and approval by the IPUC. Copies of the applications are available to the public at the IPUC offices (11331 W. Chinden Blvd. Building 8, Suite 201-A, Boise, ID 83714), Idaho Power offices, on idahopower.com, or at the IPUC website, puc.idaho.gov. Customers may also subscribe to the IPUC’s RSS feed to receive periodic updates via email. Written comments regarding Idaho Power’s applications associated with the PCA (Case No. IPC-E-25-20) or HCC relicensing (Case No. IPC-E-25-13) may be filed with the IPUC (puc.idaho.gov/form/casecomment).

About Idaho Power

Idaho Power, headquartered in vibrant and fast-growing Boise, Idaho, has been a locally operated energy company since 1916. Today, it serves a 24,000-square-mile area in Idaho and Oregon. The company has a long history of safely providing reliable, affordable, clean energy. With 17 low-cost hydroelectric projects at the core of its diverse energy mix, Idaho Power’s residential, business, and agricultural customers pay among the nation’s lowest prices for electricity. Its 2,100 employees proudly serve more than 650,000 customers with a culture of safety first, integrity always, and respect for all.

Jordan Rodriguez
Communications Specialist
jrodriguez@idahopower.com
208-388-2460