Hydropower is key in making Idaho electricity rates low

IDAHO FALLS, Idaho (KIFI) - While natural gas heating costs are up for Idaho, the state's electricity prices are still among the nation's lowest, largely due to inexpensive hydropower.

A recent study says Idaho has the highest increases in winter heating prices, at almost 72% over a four-year period. A recent study from thisoldhouse.com says Idaho has the highest increases in winter heating prices, at almost 72% over four years.

The study says winter heating costs from each state were determined by examining natural gas consumption and gas prices in each state. According to the study, Western states have the highest widespread use of natural gas for heating.

The study does not mention Idaho's low electricity rates, with the third lowest average electricity prices in the country. The U.S. Energy Information Administration says part of this is due to "relatively inexpensive hydropower," making up 51% of Idaho's power generation in 2022.

"Hydro is inexpensive in the most basic of terms because you're using falling water to generate electricity through hydroelectric dams, so your fuel source is free," said Douglas Johnson, media relations for Bonneville Power Administration.

Johnson said there are about 140 utilities that Bonneville Power Administration sells to throughout the Pacific Northwest.

"We can sell that through spot markets to other entities in the Northwest and other entities throughout the Western interconnection, which is another way that we keep rates low is by selling that to other entities. Again, we're a Federal nonprofit, so every dollar we make goes back into keeping rates low rather than providing money to shareholders or other parties."

Idaho Falls Power is one of the utilities Bonneville Power Administration sells electricity to.

While Idaho Falls Power purchases electricity from the Bonneville Power Administration through long-term contracts, the city says it can produce some inexpensive hydropower of its own. Idaho Falls Power owns and operates five hydroelectric projects along the Snake River.

Overall, hydroelectric production accounts for 85.96% of the City's electric requirements, and the case for hydropower is reflected in electric costs. The City of Idaho Falls says they can keep prices around 6.9 cents a kilowatt-hour, while the national average electricity rate is 23 cents per kilowatt-hour.