Idaho Power Set to Raise Rates by Only 5% in October

Posted on June 18, 2024 by Charlotte Shuff
Tags, Energy, General Interest

Editor’s Note: The Oregon Public Utility approved this rate increase on September 23, 2024. New rates will go into effect on October 15, 2024 for Idaho Power customers in Eastern Oregon. Customers can expect rates to be 5% higher this winter than last winter.

This year, Idaho Power is raising rates for the first time in over a decade. Thanks to the work of many advocates, including CUB, customers in Eastern Oregon will only see a 5% increase in 2024. That amounts to an added $4.13 per month for an average household.

The electric utility originally asked regulators to approve an increase of nearly 27%. Customers in Eastern Oregon would have seen an increase of $30 per month for average households. Idaho Power serves customers around the Ontario region and throughout much of Malheur County.

Customers Will See 5% Increase on October 15, 2024

Now, Eastern Oregon customers will see an overall 5% increase on October 15, compared to rates at the start of 2024. This is a huge reduction from the originally requested 27% increase Idaho Power requested. The Public Utility Commission still needs to approve the settlement later this summer.

Along with the increase, qualifying customers can enroll in new bill discounts similar to other Oregon utilities’ bill discount programs starting October 15.

Rate Adjustment in Two Phases

While Idaho Power customers in Eastern Oregon will see overall a 5% increase in 2024, this will happen in two phases. The first phase will be about a 10% decrease on June 1. The second will be about a 14% increase on October 15.

The decrease this summer is due to changes in the cost of power, mainly hydroelectricity. Because of good water flow and the ability to sell excess electricity, these costs were significantly lower than expected.

The increase in the fall is due to increasing costs for delivering electricity, as well as the cost of other investments Idaho Power has made in recent years. More details on what is included in the increase are below.

Why Are Bills Increasing in 2024?

Overall, Idaho Power’s costs have increased over the past decade. They haven’t filed to adjust customers’ bills in 12 years.

What is Included in the Rate Increase

While this is not a complete list, the utility asked for more money for the following areas:

Wildfire management (tree trimming, vegetation removal)
Growing its system (more customers, more energy needed)
General inflation (more expensive materials, employee compensation)

Not Included in the Rate Increase

No increasing profits: CUB and other advocates successfully stopped Idaho Power from increasing its profit margins. Regulated for-profit utilities in Oregon are allowed to make a profit by law from providing service. The Public Utility Commission sets profit margins.

Oregon climate regulation is not the culprit: Investments to serve the large increase in Idaho’s demand for electricity drove costs in this rate case. This included investments in batteries and solar as well as transmission and maintenance. Idaho Power determined these investments in batteries and solar were the best way to serve both the growing demand for electricity and the company’s largest customers. Not because of Oregon’s climate policies – which Idaho Power is not bound to.

Wins for Idaho Power Customers

The biggest win for customers is reducing the overall increase from the requested 27% to 5%. This means that an average person using Idaho Power electricity will only see a $4.13 per month increase. The original increase would have been $30 per month for average households.

Bill Discount Program Starts October 15, 2024

Starting this fall, qualifying Eastern Oregon customers of Idaho Power can sign up for discounts on their bills each month. While the details of how to sign up for this program are still being finalized, we do know that customers will at the very least be able to sign up with the Idaho Power Company directly or through their local Community Action Agency.

Income Qualifications
Customers do not need to have a social security number to apply or qualify. You can determine if your income and household size is at or below 60% SMI here, by scrolling down to Oregon.

Tier 1: 70% discount
To qualify: Income up to 20% SMI (ex: Family of 4 making under $26,276 per year)

Tier 2: 25% discount
To qualify: Income of 20-40% SMI (ex: Family of 4 making between $26,276 - $52,551 per year)

Tier 3: 10% discount
To qualify: Income of 40-60% SMI (ex: Family of 4 making between $52,551 - $78,827 per year)

Energy Burden Qualifications

Qualifications are not only based on a household’s size and income but also include a household’s energy burden calculation. Energy burden is how much of your family’s income goes to paying energy bills.

Customers with electric heat qualify when 6% of their household income goes to Idaho Power. For example, if a family earns $1,666 per month and spends $100 per month on electricity, that would be a 6% energy burden.

Customers with other heating (gas, wood, propane, etc.) qualify when 3% of their household income goes to Idaho Power. For example, if a family earns $3,333 per month and spends $100 per month on electricity, that would be a 3% energy burden.

Investments in Home Energy Efficiency to Decrease Future Bills

CUB has long been an advocate for decreasing utility bills at the household level. This means adding energy efficiency measures to individual homes. When a home is poorly insulated, uses outdated heating systems, or is otherwise inefficient, the people who live there have to use more energy. By investing in home weatherization and updating energy efficiency, households will save more money each month for years to come.

In this case, we pushed for Idaho Power to increase its investments in efficiency, particularly for customers who cannot afford it on their own. Now, the utility will have greater accountability and greater incentive to invest in upgrades to reduce customers’ bills.

While other utilities, like PGE and Pacific Power, have to report their efficiency investments, Idaho Power previously did not. Now, Idaho Power will have to regularly report how they are spending customer money. Before, the utility charged all residential customers for these programs without any accountability of how they were (or were not) spending that money.

These projects benefit all customers, as well, by reducing how much energy is needed on the whole system. It can also help in avoiding expensive bigger projects like building new power plants to meet rising energy demand.

More Opportunities for Customer Representation

With these new programs that will help customers save money, Idaho Power will be much more active in front of regulators—and CUB—than ever before. This year was the first time that we heard anything meaningful from Idaho Power in over a decade. Now, the utility will be sharing reports and working with community stakeholders much more regularly.

Throughout this process, CUB worked closely with other community organizations to represent the interests of Eastern Oregonians. Thanks to this process, there is a much stronger group advocating for Idaho Power customers. Community Energy Project, Verde, and NWEC were vital to these big wins for Eastern Oregon.

CUB Will Continue to Advocate for Idaho Power Customers

By creating more opportunities for accountability, CUB will be advocating for Idaho Power customers in Oregon increasingly in the coming months and years.

Building out bill discount program: As this program rolls out, CUB will be working closely with other advocates to create a strong program that works for the people who need it most. This will include ensuring that signing up and staying in the program is easy.

Improving community representation: This process was challenging, largely because many of the communities involved have not had an opportunity to work with Idaho Power in over a decade. We will continue to push the utility to create meaningful connections with the people they serve.

Working toward long-term solutions for affordable energy: In this case, CUB pushed for a cap on rate increases. Ultimately, we decided it was best to come to an agreement with the utility rather than push for a cap in this case. We will continue to push for capping utility increases at 10% in cases from other utilities this year, which will help Idaho Power customers.

Stay Up to Date on Oregon Utility Issues

CUB will continue to advocate for people in Oregon on major utility issues. Sign up for the CUB email list for the latest updates, action alerts, and news on policies that affect the utilities your home relies on.

Donate to CUB

To keep up with CUB, like us on Facebook and follow us on Twitter!