Idaho Power Plans Two Natural Gas Plants to Meet Surging Electricity Demand

Idaho Power is moving forward with plans to construct two natural gas power plants near Twin Falls and in Elmore County to address electricity capacity shortages expected to begin in 2029. The utility company cites rapid population growth and rising demand across residential, irrigation, manufacturing, and industrial sectors as drivers for the 800-megawatt expansion. Both facilities are expected to be among the most efficient natural gas units on the company's system.

Capacity Challenge and Timeline

The South Hills facility, planned for Twin Falls County, will generate 222 megawatts and is scheduled to open in 2029. The Peregrine project in Elmore County will produce 430 megawatts and come online in 2030. Together, they represent a significant expansion for a utility system currently operating at approximately 4,000 megawatts of peak capacity, with demand projected to exceed 5,000 megawatts in the near term.

These will become the fourth and fifth natural gas plants in Idaho Power's generation fleet. Eric Hackett, the utility's power production and resource development director, stated that even with substantial renewable energy investments, conventional generation is necessary to keep pace with growth. "Even with all that addition, growth is simply outpacing those new resources," Hackett said.

Renewable Energy Integration

Idaho Power has added approximately 500 megawatts of renewable resources since 2021 and expects another 500 megawatts of renewable energy and battery storage capacity within the next few years. Currently, hydroelectric dams supply about 40% of the company's energy, natural gas accounts for roughly 20%, and wind, solar, and battery storage resources provide another 20%. Despite these investments, the utility determined that additional natural gas capacity is essential to meet projected demand without service disruptions.

The company has stated that customers have not yet experienced rate increases related to the proposed projects, though future operational and infrastructure costs could eventually affect rates.