Public utilities serving Gem State file for rate increases

Two public utilities, citing the costs of doing business and growing customer bases, are bringing proposed rate increases before the public utilities commission for approval.

Idaho Power and Intermountain Gas are both looking to increase residential and commercial customer rates, and increased rates, if approved, would not go into effect until January of next year for both companies.

“The main drivers of this rate request are unprecedented growth in our service area and the rising cost of doing business,” said Nicole Kivisto, president and CEO of Intermountain Gas. “The rate increase requested in this filing is necessary to continue supporting Idaho’s economic development through investments in the infrastructure required to safely and reliably meet growth in customer demand, as well as addressing inflationary pressures.”

The gas utility stated that, if approved, residential rates would increase by 11.46% or about $4.69 a month, whereas commercial customers would see a 5.16% increase or about $9.26 a month.

Intermountain Gas stated that its operating and maintenance costs have increased by about 5.3% since its last rate increase. Its costs are up doe to higher labor and benefit costs, investments to infrastructure to support the population growth and “the resulting increase in depreciation expense.”

“The rapid growth and system upgrades necessary for safety and reliability necessitate substantial capital investments,” Kivisto added. “These investments are fundamental to enhancing Intermountain’s capacity to offer safe and reliable service to both existing customers and those seeking natural gas services.”

Idaho Power filed its proposed rate increase with the Idaho Public Utilities Commission, seeking to raise its rates by 13.09% or $199.1 million. That translates into roughly 17.35% or $15 to $25 per month for residential customers, the company stated.

Depending on the size of the commercial customer, rates will vary. Small general service customers will see about a 17.31% increase, while large general service customers will see about a 7.26% increase. Large power consumers will have an 8.22% increase and irrigation customers will see a 17.32% increase.

The utility company broke down the reasoning for the $199.1 million increase due to $73 million for energy production and storage resources; $53 million for grid investments; $25 million for wildfire resilience; $20 million for labor costs; and $28 million for other investments which include technology resources, fleet vehicles, office and operational facilities and other expenses.

The IPUC will review both proposals over the next several months, during which time the public can review and comment on each at www.puc.idaho.gov.