Idaho Electricity Rates: What to Know

For nearly a century, Idaho has enjoyed some of the cheapest electricity in the country. The Snake River hydropower system built the Gem State's reputation as an energy bargain, and as recently as 2024, Idaho held the third-lowest residential electricity rate in the nation. The average Idaho household paid about $110 a month for electricity — roughly 25% less than the national average of $147.

That era is ending. In the last 18 months, all three of Idaho's major investor-owned utilities have filed major rate cases, with Idaho Power alone seeking a 13.09% increase before settling at 7.48% effective January 2026. Rocky Mountain Power customers in eastern Idaho saw a 16.8% base rate hike in early 2025. Avista customers in the northern panhandle are facing a multi-year rate plan that stacks to more than 20% in cumulative increases across 2025 and 2026. Idaho's cheap-electricity era is not over yet — rates here are still well below the national average — but the gap is closing fast, and the forces driving costs higher are structural, not temporary.

How Idaho's Electricity Market Works

Idaho is a regulated electricity market. Unlike deregulated states where you can shop for an electricity provider, Idaho residential customers are served by whichever utility holds the franchise for their area. You do not get to choose.

The Idaho Public Utilities Commission (IPUC) oversees the state's three investor-owned utilities: Idaho Power, Avista, and Rocky Mountain Power (a subsidiary of PacifiCorp). The IPUC is a three-member commission appointed by the governor, and it sets rates, approves rate increase requests, and establishes the rules these utilities must follow. Its mission is to ensure Idaho utility customers receive safe, reliable service at just and reasonable rates.

However, the IPUC does not regulate municipal utilities or rural electric cooperatives. Idaho Falls Power, for example, is a city-owned utility governed by the Idaho Falls City Council. Rural cooperatives like Kootenai Electric, Fall River Rural Electric, and Lost River Electric are member-owned, with elected boards that set their own rates.

Here is a quick breakdown of Idaho's utility types:

Utility Type	Regulation	Examples
Investor-Owned Utilities (IOUs)	IPUC-regulated	Idaho Power, Avista, Rocky Mountain Power
Municipal Utilities	Self-governing (city council)	Idaho Falls Power, and other city utilities
Rural Electric Cooperatives	Member-owned, self-governing	Kootenai Electric, United Electric, Fall River, Lost River

Idaho does not have community choice aggregation, retail electricity choice for residential customers, or any comparable mechanism for residents to pick their provider. The bottom line: as a residential customer, your main lever for controlling costs is not choosing your provider. It is managing your usage, picking the right rate plan, and taking advantage of efficiency and solar programs that remain available.

What Idahoans Actually Pay

Let's put real numbers on the table. Idaho's average residential electricity rate in 2025 was 11.62 cents per kWh, according to data compiled from EIA figures — approximately 30.5% below the national average of 16.73 cents. More recent 2026 estimates put the average closer to 12.5 cents per kWh after the January rate increases took effect. Either way, Idaho sits among the three cheapest residential electricity states in the country, alongside Washington and Louisiana.

The average monthly electric bill for an Idaho household is approximately $110, compared to a national average of $147. That is a meaningful discount for the state's roughly 2 million residents.

But the trend is moving quickly the wrong direction. Here is what the recent rate case timeline looks like for Idaho's three major investor-owned utilities:

Utility	Increase	Effective Date	Typical Monthly Impact
Rocky Mountain Power	16.8% base (net ~7.4% with ECAM)	Feb 1, 2025	+$19.90 (proposed), moderated by ECAM credit
Idaho Power	3.73%	Mid-2025	Smaller interim adjustment
Avista	14.4% base	Sept 1, 2025	Substantial bill increase
Idaho Power	7.48% general rate	Jan 1, 2026	+$12.13 (900 kWh customer)
Avista	5.2% base	Sept 1, 2026	Additional ~$6/month
Avista	7.4% (energy efficiency)	May 1, 2026	+$8.90 to $124.44 (939 kWh)

For Idaho Power, the January 2026 rate increase was the most significant development. The utility originally asked the IPUC for a 13.09% increase. After negotiations and a settlement stipulation filed in October 2025, the commission approved a more moderate 7.48% overall increase. Even so, a typical residential customer using 900 kWh per month is now paying roughly $146 more per year — about $12.13 more per month.

What makes these increases feel unusual is that Idaho Power had not filed a general rate case in nearly a decade before this round. For years, the company adjusted rates through smaller annual fuel cost updates (the Power Cost Adjustment, or PCA) rather than comprehensive rate reviews. The fact that a full rate case was needed signals a deeper shift: legacy assets that once kept costs low are being squeezed, while new investments are stacking up.

If your bill has been climbing and you are not sure where the money is going, our guide on how to read your electric bill and spot overcharges walks through every line item.

Major Utilities

Most Idahoans are served by one of three investor-owned utilities, a handful of municipal systems, or a rural cooperative. Here is how the main players compare.

Idaho Power

Idaho Power is by far the state's largest utility, serving approximately 648,000 customers across southern Idaho and a small slice of eastern Oregon. Its territory includes the entire Treasure Valley — Boise, Meridian, Nampa, Caldwell, and the surrounding cities that are home to most of Idaho's population growth — as well as Twin Falls and the Magic Valley agricultural region.

Idaho Power's generation is built around hydropower. The company owns 17 hydro facilities including the three-dam Hells Canyon Complex (Brownlee, Oxbow, and Hells Canyon dams) on the Snake River along the Idaho-Oregon border. In a normal water year, the Hells Canyon Complex alone provides about 70% of Idaho Power's hydro generation and roughly 30% of its total generation. This is the single biggest reason Idaho Power customers have paid so little for so long.

On January 1, 2026, Idaho Power implemented new rates following a general rate case settlement approved by the IPUC. The overall average increase was 7.48%, adding approximately $12.13 per month to a typical 900 kWh residential bill. Key cost drivers cited in the case include rapid customer growth, new generation and storage investments, grid expansion, wildfire resilience upgrades, and labor cost increases.

Idaho Power's parent company IDACORP is publicly traded (NYSE: IDA), and the utility has committed to a 100% clean energy goal by 2045 under its "Clean Today, Cleaner Tomorrow" initiative — one of the first investor-owned utilities in the country to make such a pledge. Notably, Idaho does not have a state renewable portfolio standard, so Idaho Power's goal is voluntary.

Avista Utilities

Avista serves northern Idaho — the panhandle region including Coeur d'Alene, Post Falls, Sandpoint, Moscow, and Lewiston — along with eastern Washington. It is a much smaller footprint in Idaho than Idaho Power's, but it covers the state's most rapidly growing areas near Washington's Spokane metro.

Avista customers are facing the steepest cumulative increases of any Idaho utility right now. In January 2025, the company filed a multi-year rate plan with the IPUC that proposed a 14.4% base electric rate increase effective September 1, 2025, followed by an additional 5.2% increase effective September 1, 2026. On top of that, in February 2026 Avista filed for a 7.4% annual energy efficiency rate adjustment, effective May 1, 2026, to align program funding with actual 2025 costs.

For a typical Avista residential customer using 939 kWh per month, the May 2026 adjustment alone added $8.90 per month, pushing the typical bill to $124.44. When you stack all three increases together, Avista customers are looking at roughly $25+ per month more than they paid in mid-2025 — a more than 20% jump in about a year.

The cost drivers behind Avista's filings are similar to Idaho Power's: distribution and transmission investments, generation additions, wildfire mitigation, and rising operational costs.

Rocky Mountain Power (PacifiCorp)

Rocky Mountain Power serves approximately 83,000 customers in eastern Idaho — communities like Rexburg, Preston, Montpelier, and Malad, plus portions of Bear Lake County. It is a subsidiary of PacifiCorp, which is owned by Berkshire Hathaway Energy and is the same parent company as Pacific Power in Oregon.

In 2024, Rocky Mountain Power filed a general rate case originally requesting a 17.9% increase (about $19.90 per month for a typical residential customer) effective January 2025, plus an additional 5.3% in 2026. After negotiations, the IPUC approved a settlement on February 1, 2025, for a 16.8% base rate increase with no additional increase in 2026. A simultaneous $32.5 million reduction to the Energy Cost Adjustment Mechanism (ECAM) partially offset the base increase, resulting in a net 7.4% effective bill increase for customers.

Rocky Mountain Power's rate case drivers also include wildfire mitigation costs. PacifiCorp's parent company is dealing with over $2.2 billion in wildfire settlement liabilities from the 2020 Labor Day fires in Oregon, which has weakened the company's credit rating and increased its cost of capital. While those liabilities cannot be directly passed through to Idaho ratepayers, indirect effects — higher borrowing costs, rising insurance premiums, and increased wildfire mitigation spending — do flow into Idaho rates.

Idaho Falls Power and Municipal Utilities

Idaho Falls Power is the state's largest municipal utility, operating since 1900. It serves the city of Idaho Falls and draws about one-third of its electricity from five locally owned hydropower plants on the Snake River, with the remainder supplied by the Bonneville Power Administration (BPA) under a long-term contract.

The utility's current residential rate is approximately $0.076 per kWh with a $24.00 monthly service charge — one of the lowest rates in the entire country. In November 2025, Idaho Falls city leaders signed a new 20-year power supply contract with BPA, locking in stable wholesale costs through the mid-2040s. This is a significant advantage: BPA sells federally operated hydropower at cost-based rates that are generally lower than market.

Other Idaho cities with municipal utilities include Bonners Ferry, Burley, Declo, Heyburn, Minidoka, Plummer, Rupert, and Weiser, though most are much smaller than Idaho Falls Power.

Rural Electric Cooperatives

Roughly a dozen rural electric cooperatives serve outlying areas of Idaho, including Kootenai Electric Cooperative, United Electric Cooperative, Fall River Rural Electric, Riverside Electric, Salmon River Electric, Lost River Electric, and Clearwater Power. Most purchase power from BPA at federal hydropower rates and deliver electricity to their member-owners at cost plus a modest margin.

Cooperative rates vary by system, but many are competitive with or cheaper than investor-owned utility rates. Because cooperatives are member-owned and self-governing, any rate changes must be approved by an elected board — not the IPUC.

Why Idaho's Cheap Electricity Era Is Under Pressure

If there is one thing to understand about Idaho's shifting rate landscape, it is that multiple pressures are converging at the same time. None is a single crisis, but together they are ending the era of low, stable rates.

Explosive Population and Load Growth

Idaho is one of the fastest-growing states in the country. It ranked second nationally for percentage population growth in 2022, and the trend has continued. Idaho Power alone expects its customer count to grow from 648,000 today to about 867,000 by 2045 — a 34% increase.

More customers means more peak demand. Idaho Power's 20-year Integrated Resource Plan projects that peak demand will grow by approximately 1,700 MW over the next two decades, with nearly 1,000 MW of that growth coming in just the next five years. To put that in perspective, 1,000 MW is roughly the size of a large nuclear reactor — the utility needs to add capacity equivalent to a whole new power plant in a very short window.

All of that new generation, transmission, and substation capacity costs money, and it flows into rate cases.

Data Centers and Heavy Industry

The surge in demand is not just from new homes. Meta (Facebook's parent company) is building a 960,000-square-foot data center in Kuna, Idaho — the company's 15th U.S. data center location — chosen in part because of available land, existing power capacity, and Idaho's 2020 data center tax incentive program. Micron Technology is also expanding semiconductor manufacturing operations in Boise. Both are massive electric loads on top of residential growth.

Idaho Power has stated that there will be no rate increase tied directly to Meta, as large industrial customers pay separate rates and contribute to system infrastructure. But residential customers are legitimately worried about whether heavy industry costs get socialized across the full customer base — and the IPUC's 2025 Idaho Power rate case saw spirited public testimony on exactly that question.

Hydropower Drought

The same hydropower that made Idaho electricity cheap is becoming less reliable. Between 2003 and 2020, the Pacific Northwest lost approximately 300 million megawatt-hours of hydropower generation compared to the long-term average — equivalent to roughly $28 billion in lost revenue across the region. About half the drop was due to drought in Oregon, Washington, and California.

In 2024, hydroelectricity made up 49% of Idaho's electricity generation, down from 80% as recently as 2009. That is a dramatic shift in just 15 years. Idaho Power's hydro generation varies substantially from year to year based on snowpack, river flows, and upstream water management decisions that the company does not fully control. When hydro output falls, the utility has to buy more expensive replacement power from the wholesale market or run its natural gas peaker plants more often — and those costs get passed through to customers via the Power Cost Adjustment.

Coal Transition Costs

Idaho has no coal plants within its borders, but Idaho Power and Rocky Mountain Power have long held ownership stakes in out-of-state coal facilities. Idaho Power is gradually exiting:

• North Valmy (Nevada): Idaho Power exited Unit 1 at the end of 2019. Unit 2 retired at the end of 2025.
• Jim Bridger (Wyoming): Idaho Power owns one-third of the plant (PacifiCorp owns the rest). Two of four units were converted from coal to natural gas in early 2024. The remaining coal-fired units are scheduled to exit by the end of 2030.

Exiting coal involves decommissioning expenses, stranded asset write-downs, and procurement of replacement generation. All of those costs get recovered through rate cases.

Wildfire Mitigation

Idaho has not had a utility-caused catastrophic wildfire event like Oregon's 2020 Labor Day fires, but the industry is still spending heavily to reduce ignition risk. Vegetation management, line hardening, advanced sensors, public safety power shutoff programs, and even undergrounding in high-risk areas all add to the rate base. Idaho Power, Avista, and Rocky Mountain Power have all cited wildfire mitigation as a rate case driver.

Hydropower: Idaho's Foundation

To understand Idaho electricity, you have to understand hydropower. In 2024, renewable energy sources accounted for 69% of Idaho's total electricity generation, the fifth-highest share of any state, behind only Vermont, South Dakota, Washington, and Maine. Hydropower made up the lion's share of that figure.

Idaho Power's hydropower backbone is the Hells Canyon Complex (HCC) — a series of three dams on the Snake River along the Idaho-Oregon border: Brownlee Dam, Oxbow Dam, and Hells Canyon Dam. Together, they produce about 70% of Idaho Power's hydro output in a normal water year and approximately 30% of the company's total annual generation.

The financial magic of legacy hydropower is that the dams were built and paid off decades ago. Once construction debt is retired, the marginal cost of operation is very low. Water is free. There is no fuel to burn. Maintenance costs are real but modest compared to fuel-burning plants. For decades, this "paid-off asset" effect has subsidized Idaho Power's rates.

The Relicensing Cliff

Hells Canyon Complex operates under a Federal Energy Regulatory Commission (FERC) license that expired in 2005. Idaho Power has been working through the relicensing process for nearly two decades — one of the longest in the country — and the new license is expected to include significant environmental mitigation requirements, fish passage improvements, water quality protections, and recreation commitments. All of those obligations add to operating costs.

Even before relicensing concludes, climate change is reducing the reliability of hydropower. Snowpack is becoming more variable, summer water demands for irrigation and environmental flows are increasing, and drought years like 2021 have dramatically cut hydro output. In 2024, Idaho hydropower produced only 44-49% of the state's generation — near historic lows. US hydropower output is projected to rise about 7.5% in 2025 on better water conditions, but generation is still expected to remain below the 10-year average.

The cheap hydropower story has not ended, but it is slowly fading. And as it fades, replacement generation — wind, solar, natural gas, battery storage — is more expensive per megawatt-hour than dams that were built with depression-era financing.

Understanding Idaho's Rate Structures

Idaho uses several rate structures that directly affect what you pay. Knowing how they work gives you opportunities to save.

Tiered, Seasonal Pricing (Idaho Power Standard)

Idaho Power's default residential rate is Schedule 1, a tiered rate structure that also varies by season. The key features:

• Summer season: June 1 through September 30 — higher per-kWh rates because wholesale power costs peak in the summer when cooling demand is highest.
• Non-summer season: October 1 through May 31 — lower per-kWh rates.
• Tiered pricing: Within each season, rates increase as usage crosses tier thresholds. The more you use, the more you pay per kWh above the threshold.

This means two things. First, summer cooling is disproportionately expensive — every window AC unit running through August peak hours costs more than the same energy in April. Second, heavy users (large homes, pool pumps, electric heat) get pushed into higher tiers and pay a higher average rate. Efficiency upgrades that reduce summer usage deliver outsized savings.

Rocky Mountain Power and Avista also use tiered or block rate structures in Idaho, with some seasonal variation.

Time-of-Use (TOU) Options

Idaho Power offers an optional Time-of-Use plan (Schedule 7) that charges different rates at different times of day. Starting January 1, 2026, Idaho Power launched a "confidence guarantee" allowing customers to try TOU for a full year and switch back if it does not save them money.

Under TOU, rates are cheapest during off-peak hours (typically overnight and early morning) and most expensive during on-peak hours (typically late afternoon through early evening, especially in summer). Customers who can shift heavy usage — laundry, dishwasher, EV charging, pool pumps, pre-cooling the house — can cut their effective rate significantly. EV owners in particular benefit because overnight charging falls squarely in the cheapest off-peak window. Our guide on smart thermostats covers how to automate pre-cooling and scheduling to take advantage of TOU windows.

What Is on Your Bill

A typical Idaho residential electricity bill includes several components beyond the energy charge:

• Energy charge (tiered, often seasonal) — the largest component
• Basic/customer/service charge — fixed monthly connection fee
• Power Cost Adjustment (PCA) / ECAM — annual fuel and market power cost true-up
• Franchise fee — varies by city (typically a few percent)
• Taxes

Understanding these line items matters because some — like the PCA — change annually based on wholesale market conditions and can swing your bill by 5-10% even without a general rate case.

Solar Energy in Idaho

Idaho has excellent solar resources. Southern Idaho averages 200+ sunny days per year, and solar panel output in Boise is comparable to parts of Nevada and Utah. Despite this, solar's economics in Idaho have changed dramatically in the last two years due to a major policy shift.

The Net Metering Crash

On December 29, 2023, the IPUC authorized Idaho Power to replace traditional net metering with a net billing structure, effective January 1, 2024. This was one of the most significant state-level rollbacks of rooftop solar compensation in the country. Rocky Mountain Power has implemented a similar net billing structure in eastern Idaho.

Here is the difference in plain English:

• Old net metering: When your solar panels produced more than you consumed, the excess flowed to the grid and you received a full retail-rate credit — essentially a 1:1 exchange. Your meter "spun backward" in value.
• New net billing: You pay the full retail rate for every kWh you consume from the grid, but you only receive an Export Credit Rate (ECR) — substantially below retail — for every kWh you export.

The initial ECR in January 2024 was 6.18 cents per kWh, down from an average 8.8 cents retail. In October 2025, Idaho Power proposed cutting the export rate by an additional 31%, with an off-peak export rate of roughly 4.91 cents per kWh and an on-peak rate of 20.42 cents per kWh. The problem with the new structure: on-peak is narrowly defined as 3-11 PM weekdays from June 15 through September 15. Most rooftop solar production happens during morning and midday hours outside that window, so most exports would be credited at the much lower off-peak rate.

For new solar customers, this dramatically lengthens payback periods. Systems that would have paid back in 7-9 years under net metering now require 10-15+ years, depending on the household's self-consumption ratio.

Legacy Status: Grandfathered Customers

There is a critical exception. Customers whose solar systems were installed and interconnected before December 20, 2019 retain full net metering status through December 20, 2045. These "legacy" customers continue to receive 1:1 retail credit for excess generation through the life of their original systems and can even replace broken panels or expand capacity by up to 10% (or 1 kW, whichever is greater) without losing legacy status.

If you own a home with a pre-2019 solar system, that legacy status is extraordinarily valuable — worth preserving at all costs during any home sale or system upgrade. Forfeiting legacy status, even inadvertently, permanently moves the system to net billing.

Solar Economics in Idaho Today (Non-Legacy)

Despite the policy headwinds, solar can still work for many Idaho homeowners — particularly those with high daytime self-consumption, battery storage, or plans to electrify heating and transportation:

• Average cost in 2026: approximately $2.97 per watt
• Typical 6 kW system: $15,000-$21,000 before federal tax credit
• Typical 7.2 kW system: roughly $15,000 after federal incentives
• Payback period: 9-12 years for most non-legacy customers
• 25-year savings: approximately $28,000 for a typical system

The Idaho State Solar Tax Deduction

Idaho still offers one of the more generous state-level solar tax incentives in the Mountain West: an income tax deduction of 40% of installation costs in the installation year, plus 20% in each of the next three years, capped at $5,000 per year. Note that this is a tax deduction, not a credit, so its value depends on your marginal state income tax rate. Combined with federal incentives and Idaho's low labor costs, the state deduction can cut thousands off a system's effective price. Before committing to a solar purchase, our guide on choosing the best solar panels for your home is a good starting point.

Battery Storage Matters More Now

One practical result of the net billing change is that battery storage has become more attractive in Idaho. If exports are worth only 4-6 cents per kWh but imports cost 12-14 cents per kWh, self-consuming more of your solar through a battery is worth substantially more than exporting it. Storage also provides backup power during outages — increasingly valuable as peak loads grow and the grid strains to keep up.

Strategies to Lower Your Idaho Electricity Bill

With rates rising after a decade of stability, every efficiency improvement you make today becomes more valuable over time. Here are the highest-impact strategies for Idaho homeowners.

1. Focus on Summer Cooling First

Idaho Power's seasonal tiered rates mean summer usage costs more per kWh than winter. Air conditioning is typically the largest summer load for homes in the Treasure Valley, Magic Valley, and southern Idaho. A well-designed efficiency plan targets summer first: sealing air leaks, adding attic insulation, planting shade trees on the west side of the house, and upgrading to a high-efficiency central AC or heat pump. Our guide on the best heat pumps for the home walks through the top options.

2. Try the Time-of-Use Plan

Idaho Power's 2026 "confidence guarantee" for TOU enrollment removes the biggest barrier to trying it. You can opt in, run for a full year, and switch back to Schedule 1 if it does not save you money. If you have any flexibility in when you do laundry, run the dishwasher, or charge an EV, TOU typically lowers your effective rate. EV owners in particular should strongly consider it.

3. Pre-Cool and Pre-Heat

Tied to TOU: shifting heating and cooling loads to off-peak hours can dramatically lower costs even on standard tiered rates. Modern smart thermostats can pre-cool your home at 2 PM when rates are moderate and coast through the 5-9 PM peak with minimal compressor runtime. This is one of the highest-return behavior changes available.

4. Preserve or Consider Solar — With Storage

If you bought a pre-2019 solar system with your home, guard that legacy status carefully. If you are considering new solar, factor in the weaker net billing economics and run the numbers carefully with a reputable installer. For most new installs in Idaho, pairing solar with battery storage is the right move — it captures more of your own production at retail value rather than exporting at lower ECR rates. Our guide on how to cut your electric bill in half covers the top efficiency upgrades that work alongside solar.

5. Electrify Strategically

Idaho's relatively clean grid (69% renewable generation in 2024) makes electrification attractive from a carbon perspective. And with natural gas prices volatile, heat pumps for space and water heating can lower total home energy costs in many Idaho homes. Federal HOMES and HEAR rebates, state tax incentives, and manufacturer promotions can stack to offset a significant portion of upfront costs. Our whole-home electrification guide walks through the process step by step.

6. Monitor Your Usage

You cannot manage what you do not measure. A home energy monitor shows you exactly where your electricity is going, often revealing surprises — a garage freezer running inefficiently, an aging pool pump, a second fridge that should have been unplugged years ago. In a tiered rate structure, eliminating waste directly lowers your average rate by keeping you in lower tiers.

7. Take Advantage of Utility Rebates

Idaho Power offers rebates through its Energy Efficiency Programs for qualifying heat pumps, smart thermostats, insulation, weatherization, and appliance upgrades. Avista and Rocky Mountain Power run similar programs. Check your utility's website for current rebate levels before making a purchase — and always use pre-approval if required, so you do not miss out.

Low-Income Assistance Programs

Idaho has several safety nets for households struggling with electricity costs. The programs are modest compared to states with larger budgets, but they are meaningful for eligible families.

Idaho LIHEAP (Low Income Home Energy Assistance Program)

LIHEAP is a federal program administered in Idaho by the Idaho Department of Health and Welfare and delivered through Community Action Agencies (CAAs) in every county of the state.

• FY 2025 funding: $23,085,091 (including supplemental funding from the Infrastructure and Jobs Act)
• Heating benefits: $75 minimum to $1,242 maximum
• Crisis assistance: Up to $1,500 maximum
• Eligibility: 60% of Idaho State Median Income
• Heating assistance window: October 1 through March 31
• Crisis assistance and weatherization: Year-round

Like LIHEAP programs in other states, Idaho's has faced funding uncertainty. Federal budget battles and continuing resolution issues have periodically delayed disbursements. If you are behind on a bill and think you might qualify, contact your local Community Action Agency immediately — do not wait.

Weatherization Assistance Program (WAP)

Idaho's Weatherization Assistance Program is delivered alongside LIHEAP through the same Community Action Agency network. It provides free home efficiency upgrades — insulation, air sealing, HVAC repair or replacement, duct sealing, and window repairs — for income-qualified households.

• Eligibility: 200% of Federal Poverty Level (broader than LIHEAP, so many households that do not qualify for heating assistance may qualify for WAP)
• Available year-round

Because WAP upgrades are permanent, they keep delivering savings long after the one-time visit. For income-qualified Idahoans, it is one of the highest-return programs available — especially in older homes with poor insulation.

Project Share

Project Share is Idaho Power's emergency utility bill assistance program, funded by voluntary customer contributions and administered by the Salvation Army. It provides one-time emergency assistance to customers in danger of disconnection.

Idaho Falls Power Assistance

Idaho Falls Power offers its own financial assistance programs for qualifying municipal utility customers. Residents of Idaho Falls should contact the utility directly for information on eligibility and benefits.

Federal HOMES and HEAR Rebates

Two federal rebate programs launched by the Inflation Reduction Act are now available in Idaho through the state energy office:

• HOMES Program (Home Efficiency Rebates): Covers 50-100% of project costs up to $10,000, depending on income and documented energy savings achieved.
• HEAR (Home Electrification and Appliance Rebates): Point-of-sale rebates for low-to-moderate income households buying high-efficiency electric appliances and weatherization.

Both programs stack with utility rebates and the Idaho state solar tax deduction for qualifying households.

Frequently Asked Questions

What is the average electricity rate in Idaho?

As of early 2026, the average residential electricity rate in Idaho is approximately 11.62 to 12.5 cents per kWh, making it among the three cheapest residential electricity markets in the country. That is roughly 25-30% below the national average of 16.73 cents per kWh. However, rates have been rising quickly — all three major investor-owned utilities filed significant rate cases in 2024-2026.

Why is my Idaho electricity bill going up all of a sudden?

For years, Idaho electricity rates were remarkably stable — Idaho Power did not even file a general rate case for nearly a decade. But in 2024-2026, multiple pressures have converged: explosive population growth, new data center and semiconductor industry load, drought-reduced hydropower output, coal plant transition costs, wildfire mitigation spending, and inflation in labor and materials. These are structural cost drivers, not a one-time spike.

Can I choose my electricity provider in Idaho?

No. Idaho is a fully regulated electricity market. Residential customers are served by whichever utility holds the franchise for their area. The three investor-owned utilities — Idaho Power, Avista, and Rocky Mountain Power — are regulated by the Idaho Public Utilities Commission. Municipal utilities and rural electric cooperatives set their own rates and are not regulated by the IPUC. There is no community choice aggregation or retail electricity competition for residential customers in Idaho.

Is solar still worth it in Idaho after the net metering changes?

It depends on your situation. Customers with pre-December 20, 2019 solar systems retain full net metering until 2045 — that legacy status is extremely valuable and worth preserving. For new solar installations, the net billing structure makes payback periods longer (typically 10-15 years vs. 7-9 under old net metering). Solar is still often worthwhile, especially when paired with battery storage, if you have high self-consumption, or if you plan to electrify heating and transportation. The Idaho state solar tax deduction can cut up to $5,000 per year off your state income tax for four years.

What is Idaho Power's "Clean Today, Cleaner Tomorrow" goal?

Idaho Power announced a goal in 2019 to provide 100% clean energy to its customers by 2045. It was one of the first investor-owned utilities in the country to make such a pledge, notable because Idaho has no renewable portfolio standard requiring it. Progress to date includes closing the Boardman coal plant through Oregon-side operations, exiting North Valmy coal, converting two Jim Bridger units from coal to natural gas in 2024, and adding wind, solar, and battery storage. The goal is voluntary and aspirational rather than legally binding.

How does hydropower affect Idaho electricity rates?

Hydropower is the single biggest reason Idaho has had such low electricity rates historically. Idaho Power's Hells Canyon Complex alone provides about 30% of the utility's total generation in a normal water year, and the dams were paid off decades ago, making marginal generation cost very low. However, climate change and drought have reduced hydropower output from 80% of Idaho's generation in 2009 to 44-49% in 2024. The Hells Canyon Complex is also undergoing a two-decade FERC relicensing process that will likely increase operating costs. The hydropower discount that kept rates low is slowly fading.

What happens if I cannot pay my Idaho electricity bill?

Contact your utility immediately to ask about payment arrangements, deferred payment plans, and emergency assistance programs. Then apply for LIHEAP through your local Community Action Agency — benefits range from $75 to $1,242 for heating, with up to $1,500 for crisis situations. Project Share is another option through Idaho Power and the Salvation Army. If you qualify, the Weatherization Assistance Program can provide permanent efficiency upgrades that lower your future bills. Do not wait until disconnection — the earlier you reach out, the more options are available.

Will rates keep going up?

Most likely yes, at least in the near term. Idaho Power is forecasting 1,000 MW of peak demand growth in the next five years, largely from residential growth, data centers, and heavy industry. That growth requires major investments in generation, transmission, and distribution that will flow into future rate cases. Avista and Rocky Mountain Power are facing similar dynamics. Hydropower cannot scale to meet the new demand, and replacement generation is more expensive. The good news: rates are coming off a very low baseline, and Idaho will likely remain among the cheapest electricity states in the country even after several more years of increases.

Your Idaho Electricity Action Plan

Here is a concrete plan to take control of your electricity costs.

This week:

1. Pull up your most recent utility bill and identify your current rate schedule, monthly kWh usage, and all the line items you are paying. If anything looks unfamiliar, our bill reading guide will help you decode it.
2. Log into your utility's website (idahopower.com, myavista.com, rockymountainpower.net, or your municipal/co-op site) and review your usage history for the past 12 months. Note your seasonal highs and lows — summer air conditioning is typically the biggest cost driver.
3. If you are an Idaho Power customer, look into the Time-of-Use plan and take advantage of the 2026 "confidence guarantee" that lets you try it risk-free for a year.

This month:

4. Identify the 2-3 biggest energy users in your home. For most Idaho households, that means HVAC, water heating, and large appliances. Price out efficiency upgrades and check for rebates from your utility, state, or the federal HOMES/HEAR programs.
5. If you own a pre-2019 rooftop solar system, confirm your legacy net metering status with Idaho Power or Rocky Mountain Power and understand how to preserve it. This is worth thousands of dollars over the remaining years.
6. If you are considering a new solar installation, get multiple quotes from reputable Idaho installers and ask specifically how they model the new net billing structure. Consider whether battery storage is worth adding.

If you are struggling to pay your bill:

7. Contact your utility directly to ask about payment plans and hardship programs. Avoid waiting for a disconnection notice.
8. Apply for LIHEAP through your local Community Action Agency — benefits up to $1,242 for heating assistance and up to $1,500 for crisis situations.
9. Apply for the Weatherization Assistance Program, which can permanently lower your bills through insulation and efficiency upgrades at no cost to qualifying households.

For the long term:

10. Budget for continued rate increases of 4-8% per year. Every efficiency improvement you make today compounds in value as rates climb.
11. Consider a home energy monitor to identify hidden waste and track the impact of the changes you make.
12. If you are planning a home renovation or equipment replacement, use it as an opportunity to electrify and weatherize — stacking utility, state, and federal incentives to minimize out-of-pocket costs.

Idaho's electricity landscape is shifting faster than it has in decades. The cheap hydropower foundation is not going away overnight, but the forces squeezing it — drought, population growth, data centers, coal transition costs, and wildfire mitigation — are all pointing in the same direction. Rates are going up, and there is no sign of that reversing in the near term. The good news is that Idaho is still starting from one of the lowest baselines in the country, and consumers who act now will lock in savings that compound for years to come. The Idahoans who pay the least over the next decade are the ones who understand their rate structure, take advantage of available programs, and start making efficiency and electrification decisions today.