CORRECTION: A previous version of this article stated that the water utility rate would be increasing by 19.84%. That number reflected the percentage increase proposed by Veolia Water. The rate increase accepted by the Idaho Public Utilities Commission was 11.8%.
In the past month, prominent electric and water utility providers in Idaho have either proposed or approved significant rate increases that will hit residents where it hurts most — their pocketbooks.
A release dated June 3 states that the Idaho Public Utilities Commission has recently approved a settlement that will allow Veolia Water, a French water utility company serving much of Ada County, to increase its rates by 11.8%. The rate increase will cover "increased operating expenses, recover costs associated with plant in service additions, and produce a fair rate of return."
Adam Rush, the public information officer for the Idaho Public Utilities Commission, stated that the increase took effect on June 1.
RELATED: From flush to fertilizer - How Boise turns waste into valuable natural resources
In the end, the Idaho Public Utilities Commission approved the settlement, saying that the new rate structure will allow Veolia to sustainably service the region for the foreseeable future.
Meanwhile, the largest electric utility for southern Idaho, Idaho Power, is seeking a similar rate increase.
According to a release from May 30, Idaho Power filed a request for a rate increase of 13%. Any rate hike would not take effect until January 2026 at the earliest. The average residential customer would see an estimated increase of $21.66/month.
Residential service charges would also go up from $15 to $25.
In total, the rate increase would net Idaho Power a total of $199.1 million in revenue that would go towards the following:
- $73 million for energy production and storage resources, including investing in the continued safe, reliable operation of existing generation facilities and installing additional batteries to improve system reliability and capacity
- $53 million for grid investments, including upgrading, replacing, or constructing new power lines, substations, and other infrastructure necessary to ensure safe, reliable operations
- $25 million for wildfire resilience, including the equipment, technology, and resources necessary to prevent fires, protect communities, and to make Idaho Power’s system more resilient to wildfire
- $20 million for labor as the company hires additional employees and ensures it can retain the skilled workforce required to serve the growing region
- $28 million for other investments, including technology resources, fleet vehicles, office and operational facilities, and other expenses necessary to run a healthy and effective utility
The Idaho Public Utilities Commission will review the rate increase over the coming months. Utility customers can comment on the proposed rate increase here.
