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Idaho Falls Power proposes rate change

Idaho Falls Power is proposing a new power rate structure that could slightly change how much an average homeowner is paying.

The city council authorized the rates that would raise the flat monthly service charge from $10 to $15, but would drop the cost per kilowatt hour by a little less than half-a-cent from 6.25 cents per kilowatt hour to 5.78 cents per kilowatt hour.

Idaho Falls Power said the changes will result in a slight decrease in most homeowner’s power bill, but customers who use very little power will see a slight increase.

Idaho Falls Power said the new structure is better meant to reflect the true costs of electricity. “Variable energy costs were subsidizing fixed costs,” said Bear Prairie of Idaho Falls Power. “So by moving those, lowering the kilowatt hour charge, and increasing the monthly service charge puts the costs into the right categories.”

Also included in the new structure is a new power cost adjustment rate (PCA). Idaho Falls Power said their capacity to produce power somewhat fluctuates based off the flow of the river. In times when the city produces extra power, Idaho Falls Power would start charging customers the lower electricity rates to reflect the current market situation. Right now the proposed PCA rate sits at 5.35 cents per kilowatt hour.

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