Idaho Falls Power on Dec. 4 marked a historic milestone for the public power utility as it celebrated the official launch of its new 17.5 megawatt natural gas Peaking Plant, "an investment that strengthens local energy reliability while honoring 125 years of public-power tradition," it said.
“Since lighting the city’s first streetlamp more than a century ago, Idaho Falls Power has upheld a commitment to innovation, fiscal responsibility, and low electricity rates,” said Idaho Falls Mayor Rebecca Casper. “This new facility carries that tradition forward.”
The $36 million Peaking Plant adds 17.5-MW of on-demand generation capacity to IFP’s resource portfolio. The project was approved by the Idaho Falls City Council in early 2024, acting as the utility’s governing board, and awarded to ESI, an Idaho-based design-build contractor.
“We were incredibly fortunate to have ESI as our partner for the construction of this building,” said Alan Cunningham, Project Manager. “ESI worked closely with us through all phases. Their responsiveness was a critical component to the design-build strategy that we chose.”
ESI Executive Vice President Michael Papac added, “ESI and our design and trade teams are honored to be a partner with Idaho Falls Power in the planning, design, and construction of this innovative facility. Idaho Falls Power’s commitment to their customers is evident in the bold implementation of plans that will make an enduring impact on the community by providing for their energy needs now and into the future.”
Built to support the grid during periods of high energy demand, such as hot summer afternoons or cold winter nights, the Peaking Plant allows IFP to generate electricity locally when wholesale power prices spike.
“With this additional capacity, IFP can reduce its reliance on external market purchases during critical times, strengthening local control, price stability for our community, and helping address regional capacity concerns,” said IFP Interim General Manager Stephen Boorman.
"Protecting customers from market volatility is one of the project’s core goals. IFP’s long-standing commitment to locally owned generation has contributed to residential electric rates of roughly 7 cents per kilowatt-hour, less than half the national average. The addition of the Peaking Plant positions the utility to maintain stable, predictable rates into the future," the Idaho public power utility said.
IFP currently operates four hydroelectric plants along the Snake River, supplying about one-third of the city’s energy needs.
As Idaho Falls continues to grow, and with winter river flows often limiting hydropower output, the new Peaking Plant provides timely capacity while creating room for future development. The site also allows for research into cleaner fuels and includes space for a future substation should the community’s energy needs require it, the utility noted.
The facility’s seven Caterpillar generators run on natural gas, selected for its cost-effectiveness and lower emissions. They are also engineered to support future hydrogen fuel blends when commercially feasible.
IFP collaborated closely with the Idaho Department of Environmental Quality, implementing state-of-the-art oxy-catalyst systems that ensure emissions remain well below regulatory thresholds and allow capacity for future expansion.
Funding for the project was secured through the Idaho Energy Resource Authority (IERA), with terms structured to pay off the investment in approximately 15 years.
“IERA was able to secure our revenue bond at an incredibly low rate: 3.27%, ultimately saving us millions of dollars over the duration of the loan,” said IFP Chief Financial Officer Josh Roos. “These favorable borrowing terms protect long-term customer costs while supporting system reliability and energy independence.”
“We are proud to serve our community and its commitment to energy innovation,” Boorman said. “We have a rich history of looking toward the future and investing in the right infrastructure. As Idaho Falls Power enters its next 125 years, this plant reinforces our promise: reliable service, smart planning, and affordable energy for all customers.”
