Idaho Falls Power celebrated the formal launch of a new natural gas-fired peaking generation plant on December 4, calling the occasion a “major milestone” in its 125-year history.
The utility said the new 17.5-MW facility represents an investment of $36 million. The Idaho Falls City Council, which acts as the utility’s governing board, approved the construction contract for the new power station in early 2024. ESI, a construction company based in Meridian, Idaho, supported the project’s planning and execution.
“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 Rebecca Casper, the city’s mayor. “This new facility carries that tradition forward.”
“We were incredibly fortunate to have ESI as our partner for the construction of this building,” said Alan Cunningham, the project manager. “ESI worked closely with us through all phases. Their responsiveness was a critical component to the design build strategy that we chose.”
Michael Papac, executive vice president of ESI, said, “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.”
The power plant is designed to dispatch electricity during periods of high demand, and is expected to be utilized during the hottest summer days and coldest winter nights. The plant gives Idaho Falls Power the ability to generate electricity locally when expenditures on the open wholesale market, from which it might purchase power, would otherwise spike.
“With this additional capacity, IFP can reduce its reliance on external market purchases during critical times, strengthening local control and price stability for our community and be part of the solution for regional capacity concerns,” said Stephan Boorman, interim general manager for IFP. The utility has said adding more local generation capacity enables the utility to keep its rates more stable and predictable for customers.
Four Hydropower Dams
Idaho Falls in 1900 became the first city in Idaho with its own electric power plant. IFP operates four hydroelectric dams along what Snake River, and those facilities provide about one-third of the city’s energy. Officials said the new plant was built because the region’s population and commercial activity is growing. Idaho Falls is home to Idaho National Lab, which conducts much of the nation’s nuclear power research and development.
The new plant features seven Caterpillar generators that will burn natural gas. The generators also are designed to run on hydrogen fuel, once sufficient supplies of hydrogen are commercially available.
IFP officials said they worked closely with Idaho Department of Environmental Quality to meet regulatory guidelines. The project’s cost includes installation of state-of-the-art emission systems, “which are expected to keep emissions well beneath the upper limit threshold, ensuring the cleanest operation possible and leaving room for future expansion if needed,” according to the utility.
“Providing for low emissions and ensuring minimal environmental impact were important factors in securing unanimous [City] Council support the project,” said Boorman.
Project funding was secured through an agreement with the Idaho Energy Resource Authority (IERA), with terms structured to pay off the investment within about 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 Josh Roos, IFP’s chief financial officer.
“We are proud to serve our community and its commitment to energy innovation,” said Boorman. “We have a rich history in looking towards the future and investing in the appropriate infrastructure.”
—Darrell Proctor is a senior editor for POWER.
