IDAHO FALLS– The average residential customer of Idaho Falls Power will soon see an approximately six percent reduction on their electric bill due to a new rate structure.
Customers’ electric bills will decrease from $72.50 to $68.50, but customers who use less than 300 kWh per month will see a slight increase, according to an Idaho Falls news release.
The residential power rate will drop from 6.25 cents per kilowatt-hour used to 5.35 cents per kilowatt-hour — less than half the average electric rate in the U.S.
The proposed decrease in charges will be offset by an increase in the monthly customer service charge, from $10 to $15, to better capture “fixed costs” associated with keeping the city’s electric system ready to serve customers.
But depending on the amount of power consumption, some customers might not experience a significant decrease in their electric bill, said Kerry McCullough, Idaho Falls spokesperson.
McCullough said large families of six or more, large businesses and other customers who consume large amounts of power will experience the greatest decrease in price and those who do not consume much power might not experience much of a difference.
The decrease in rates comes in the wake of a rate increase from the Bonneville Power Administration, the federal non-profit agency from which IFP buys most of its power, according to the news release.
BPA increased their rates on July 23 to support investments such as facility maintenance, said Matt Evans, Idaho Falls Power customer relations supervisor.
Roughly 41 percent of Idaho Falls Power’s budgeted expenses for the upcoming fiscal year go toward power purchases from Bonneville Power Administration, making it the largest expenditure in IFP’s budget.
“Given all the upward pressure on electric rates, we are very fortunate to be decreasing rates,” said Jackie Flowers, Idaho Falls Power’s general manager. “It really is unheard of in today’s environment.”
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