Idaho Power Plans Two Natural Gas Plants to Bridge Imminent Energy Gap
Boise, Wednesday, 3 June 2026.
Despite recent renewable additions, surging regional demand is forcing Idaho Power to construct two natural gas plants, adding 800 megawatts by 2030 to guarantee immediate grid reliability.
Unprecedented Demand Outpacing Renewables
On June 1, 2026, Idaho Power, a subsidiary of IDACORP Inc. (NYSE: IDA), officially announced its strategy to construct two new natural gas power plants to inject approximately 800 megawatts (MW) of capacity into its system [1]. The facilities, named South Hills and Peregrine, will be located near Twin Falls and in Elmore County, respectively [1]. According to Eric Hackett, the utility’s power production and resource development director, rapid expansion across the residential, irrigation, manufacturing, and industrial sectors is fundamentally reshaping the region’s energy landscape [1].
Navigating Timelines and the Energy Mix
The planning and permitting phases for these natural gas projects have been quietly underway since 2021 [1]. With construction slated to begin as early as 2027, each facility will require about two years to build [1]. The South Hills plant is projected to come online in the summer of 2029, while the Peregrine facility is scheduled to follow in the summer of 2030 [1]. Currently, Idaho Power’s energy portfolio is anchored by hydroelectric dams, which provide about 40 percent of the supply, while natural gas and wind, solar, and battery storage each contribute roughly 20 percent respectively [1].
Financial Impacts and Broader Market Strategies
For consumers, the immediate financial implications remain stable. As of June 1, 2026, the extensive planning for the South Hills and Peregrine plants has resulted in no customer rate increases [1]. Any future costs associated with the construction and operation of these facilities will only impact customer rates after undergoing a rigorous regulatory prudency review once the plants are fully operational [1]. This regulatory safeguard ensures that the capital expenditures of IDACORP Inc. are scrutinized before being passed on to the ratepayer [1][GPT].