Idaho Power Customers Could See 3% Increase in Electric Bills

Utility cites lower hydropower forecasts and drought conditions as key factors behind proposed rate hike

Apr. 17, 2026 at 7:05am

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A geometric abstract illustration using overlapping triangles and rectangles in earthy green, brown, and gray tones, conceptually representing the rising costs of electricity in Idaho due to reduced hydropower generation.As drought conditions limit hydroelectric power, Idaho residents brace for higher electricity bills.Boise Today

Idaho Power has filed for annual spring cost adjustments with the state's public utilities commission, which if approved would result in an average 3.15% increase in electric bills for all customers. The utility cited lower forecasted hydropower generation and the ongoing drought in Idaho as the primary drivers behind the proposed rate hike.

Why it matters

Hydroelectric power makes up over a third of Idaho Power's electrical generation, so fluctuations in the state's water supply can have a significant impact on customer rates. This proposed increase comes as Idaho grapples with record-low snowpack and a statewide drought emergency, underscoring the vulnerability of the region's power grid to changing climate conditions.

The details

According to Idaho Power, the proposed power cost adjustment (PCA) increase is due to 'lower forecasted hydropower' generation, a result of the poor snowpack and drought conditions observed across Idaho this year. The utility operates 17 hydroelectric plants that account for nearly 37% of its total electrical generation, well above the national average of 5.5% for hydropower.

  • Idaho Power filed the proposed rate adjustments with the Idaho Public Utilities Commission this week.
  • The state of Idaho declared a drought emergency earlier this week.

The players

Idaho Power

An electric utility company that provides power to customers across southern Idaho and eastern Oregon, with hydroelectric generation making up a significant portion of its electrical supply.

Jordan Rodriguez

A spokesperson for Idaho Power who explained that the status of the state's water supply, particularly snowpack levels, is usually the 'biggest driver' in whether power costs increase or decrease for the utility's customers.

Idaho Public Utilities Commission

The state regulatory agency that oversees Idaho Power and will decide whether to approve the utility's proposed 3.15% rate increase.

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What they’re saying

“'Hydro is our most cost-effective resource that we have. So, generally low water years lead to a less favorable forecast for the PCA.'”

— Jordan Rodriguez, Spokesperson, Idaho Power

What’s next

The Idaho Public Utilities Commission will review Idaho Power's proposed rate adjustments and decide whether to approve the 3.15% increase in the coming weeks.

The takeaway

This rate hike proposal underscores the vulnerability of Idaho's power grid to drought and climate change, as the state's heavy reliance on hydroelectric generation leaves utility customers exposed to fluctuations in the water supply. As extreme weather events become more frequent, utilities and regulators will need to find ways to diversify energy sources and improve grid resilience to mitigate the impact on ratepayers.