Idaho Falls Power secures 20-year contract with BPA, ensuring stable, affordable rates – Local News 8

Report on Idaho Falls Power Supply Agreement and Alignment with Sustainable Development Goals

Introduction and Contract Overview

The city of Idaho Falls has ratified a 20-year power supply contract with the Bonneville Power Administration (BPA) following a three-year negotiation period. This strategic agreement is designed to secure long-term energy stability and affordability for the community, directly supporting several United Nations Sustainable Development Goals (SDGs). The contract is a key component of the city’s comprehensive energy strategy, which also includes city-owned generation assets and a new Peaking Plant.

Strategic Energy Portfolio Management

Idaho Falls Power (IFP) has structured its energy portfolio to minimize market volatility and ensure a reliable supply. This strategy is built upon three core pillars, which collectively enhance the city’s progress toward sustainable infrastructure and energy independence.

1. Self-Generation with Clean Energy: Approximately one-third of the community’s electricity is generated by four city-owned hydroelectric plants on the Snake River. This aligns with SDG 7 by utilizing a renewable energy source.
2. Long-Term Strategic Partnership: The new 20-year contract with BPA secures approximately 60% of the city’s power needs from federal hydroelectric resources, reinforcing the commitment to clean and affordable energy.
3. Infrastructure for Resilience and Flexibility: A newly constructed Peaking Plant, combined with minimal purchasing on the volatile wholesale energy market, provides the flexibility to meet future energy demands and adapt to market fluctuations, supporting SDG 9 and SDG 11.

Economic Impact and Ratepayer Benefits

The agreement provides significant financial advantages that contribute to the economic well-being and sustainability of the community.

• Projected Savings: It is estimated that the contract will save ratepayers approximately $105 million over its 20-year term when compared to purchasing energy on the open market.
• Rate Stability: The contract is a primary mechanism for protecting consumers from unpredictable energy costs, ensuring that electricity remains affordable.
• Competitive Advantage: Idaho Falls Power customers currently benefit from electric rates of just over 7 cents per kilowatt-hour, which is less than half the national average. This affordability is a cornerstone of achieving SDG 7.

Contribution to Sustainable Development Goals (SDGs)

This long-term energy agreement is a significant step in advancing the city’s commitment to global sustainability targets.

SDG 7: Affordable and Clean Energy

• Target 7.1: The contract ensures universal access to affordable, reliable, and modern energy services by locking in stable pricing and supply for two decades.
• Target 7.2: The agreement substantially increases the share of renewable energy in the city’s energy mix, as the power sourced from both BPA and city-owned plants is predominantly hydroelectric.

SDG 9: Industry, Innovation, and Infrastructure

• Target 9.1: The contract, in conjunction with the city’s hydroelectric plants and the new Peaking Plant, represents the development of quality, reliable, sustainable, and resilient infrastructure to support economic development and human well-being.
• Target 9.4: By prioritizing long-term contracts for clean energy and investing in flexible generation, the city is upgrading its infrastructure to make it more sustainable and resource-efficient.

SDG 11: Sustainable Cities and Communities

• Target 11.1: Ensuring access to affordable and reliable electricity is fundamental to providing adequate, safe, and affordable housing and basic services.
• Target 11.B: The proactive, 20-year planning horizon demonstrates an integrated policy aimed at inclusion, resource efficiency, and resilience to economic and environmental shocks.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article focuses on providing stable, affordable, and reliable electricity to the community of Idaho Falls. It highlights the use of hydroelectric plants, a form of clean energy, and emphasizes keeping electric rates low for consumers.

• SDG 9: Industry, Innovation, and Infrastructure

  The text discusses critical infrastructure, including four city-owned hydroelectric plants, a new Peaking Plant, and the power supply contract with the Bonneville Power Administration (BPA). This infrastructure is essential for economic stability and community well-being, ensuring a resilient and reliable energy supply.

• SDG 11: Sustainable Cities and Communities

  The article centers on a city-owned utility, Idaho Falls Power, and its role in serving the local community. By securing a long-term contract to ensure low-cost electricity, the city is enhancing the provision of essential services to its residents, which is a core component of making a city sustainable and inclusive.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 7: Affordable and Clean Energy

   • Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services. The article directly addresses this by stating the new contract will “keep local electric rates stable and affordable for years to come” and that the goal is to ensure “reliable, affordable power for decades.”
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article mentions that the city’s four hydroelectric plants on the Snake River “generate about one-third of the community’s electricity,” directly contributing to the share of renewable energy.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure…to support economic development and human well-being, with a focus on affordable and equitable access for all. The article details the infrastructure used by Idaho Falls Power, including its hydroelectric plants and the new Peaking Plant. The 20-year contract with BPA is a strategic move to enhance the resilience and reliability of this infrastructure against volatile energy markets.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services… The provision of affordable electricity is a fundamental basic service. The article highlights that “Idaho Falls Power customers already benefit from some of the lowest electric rates in the country,” directly contributing to this target by making a basic service affordable for the city’s residents.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 7.1 (Affordable and reliable energy):

  A specific quantitative indicator for affordability is explicitly mentioned: the cost of electricity is “just over 7 cents per kilowatt-hour, which is less than half the national average.” Reliability is indicated by the establishment of a “20-year power supply contract” and the construction of a “Peaking Plant” to “adapt to unpredictable energy markets.”

• For Target 7.2 (Share of renewable energy):

  A direct indicator is provided: “Idaho Falls Power operates four city-owned hydroelectric plants on the Snake River, which generate about one-third of the community’s electricity.” This “one-third” (approximately 33%) figure serves as a direct measurement of the share of renewable energy in the local electricity supply.

• For Target 9.1 (Resilient infrastructure):

  Indicators of resilient infrastructure are implied through the actions taken to mitigate risk. The article states that the combination of the BPA contract, existing hydro resources, and the new Peaking Plant has “greatly reduced our exposure to volatile market prices.” The estimated savings of “$105 million over the life of the contract” also serves as an indicator of the economic resilience and efficiency of the infrastructure strategy.

• For Target 11.1 (Access to affordable basic services):

  The indicator is the price of the basic service (electricity). The rate of “just over 7 cents per kilowatt-hour” is a clear metric demonstrating the affordability of this essential service for the community’s population.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: localnews8.com