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Idaho Falls OKs long‑term 'slice' power deal with Bonneville Power Administration
Summary
The Idaho Falls City Council approved a long-term 'slice' power sales agreement (contract 26PS-25043) with the Bonneville Power Administration that staff said has a net-present-value benefit of roughly three-quarters of $1 billion over 20 years and is designed to integrate with the city's existing hydro resources.
The Idaho Falls City Council on Nov. 13 approved a long-term power sales agreement with the Bonneville Power Administration, authorizing the mayor and city clerk to execute contract 26PS-25043 for a slice-block product intended to dovetail with the city's existing hydro generation.
Interim Director, Idaho Falls Power, told the council the contract is the product of three years of negotiation and modeling and described the deal as “about probably net present value about 3 quarter of $1,000,000,000 over the next 20 years.” He said the contract will be effectively in place for 16 years (the city is still under the existing contract for three more years) and that staff selected the slice option to capture upside benefits when river conditions are favorable while accepting downside risks in low-water years.
Why it matters: council members and staff said the slice product aligns with Idaho Falls’ existing generation and transmission arrangements and helps keep rates low by matching supply to hourly demand. The interim director said the city’s dual transmission sources and local hydro resources make it one of the region’s more complex, but well‑positioned, municipal utilities to manage a slice product.
Council questions and context: members asked about the history of the city's relationship with the federal power system and how prior events — including the Teton Dam failure decades ago — shaped the utility’s long‑term strategy. The interim director and other speakers described broad benefits of access to federal hydro generation and the importance of institutional expertise to execute the contract and manage operational complexity.
Council action: a council member moved to approve the power sales agreement and to give the mayor and city clerk authority to sign. The motion passed on a roll-call vote (motion recorded and carried during the meeting).
Next steps: staff will execute the contract and proceed with implementation and operational planning. The city will continue to report on rate impacts and operational outcomes as the new contract takes effect.
