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BOISE, Idaho (CBS2) — Idaho Power customers could soon see an increase in their power bills. Some environmental advocates and customers are pushing back.

It's the first time in 12 years Idaho Power has filed a general rate case with the Idaho Public Utilities Commission (PUC).

Since then, the utility says it's invested more than $3 billion in the grid, while the company's customer base has grown by about 23 percent.

Some worry the way Idaho Power is seeking to recover those costs will fall disproportionately on lower-income people and disincentivize energy efficiency.

Idaho Power filed a general rate case with the PUC in March to increase rates by 8.61 percent, or $111 million.

In a notice to customers, Idaho Power said since 2011, its operating expenses have increased by about $50 million.

If approved, Idaho Power says the average Idaho residential customer using 950 kilowatt hours per month would see an overall monthly increase of about $11.61, or 10.78%.

"We are sensitive to the impacts rate increases have on our customers, and our company works hard to keep our expenses low and our prices well below the national average," Idaho Power CEO Lisa Grow wrote to customers. "This case is largely focused on the infrastructure additions that have been necessary to reliably serve our growing customer base."

Lisa Young, the director of the Idaho Sierra Club, says her main concern is with the proposal to shift to a fixed rate system. Idaho Power would collect more from each customer in fixed costs.

Under Idaho Power's proposal to remove its tiered rate structure, residential customers would pay the same rate regardless of how much energy they use.

Young worries that increased fixed fees would disproportionately affect people who don't use a lot of energy, who are often lower-income people.

"For, you know, wealthy homeowners in a large home who might pay close to $200 per month for their power bill, an additional $35 per monthly fee might be a drop in the bucket, but for a low-income renter in a small apartment, who typically pays $40 per month or something, adding an additional $35 monthly fee is nearly doubling their bill," Young said.

Young is referring to a proposed change to Idaho Power's fixed service charge for all customers. Right now it's $5 per month for customers. Idaho Power proposes increasing that fixed charge to $35 per month by 2026.

A spokesperson for Idaho Power, Jordan Rodriguez, notes that household energy usage is not indicative of household income. He said that in its filing, Idaho Power provided evidence that the proposed changes will not disproportionally impact low-income customers.

Young also worries the changes would disincentivize energy efficiency.

"You're paying a certain amount no matter what each month on your power bill, no matter how much energy you use so what's the incentive to decrease your energy use which is important for our environment, for our grid," Young said. "[Idaho Power] has really been a champion of energy efficiency for a long time... and yet we're seeing this rate policy that would really do the opposite."

Also concerning for Young -- she says those consuming more energy would see lower bills each month than they're seeing now, while those consuming less energy would see higher monthly bills.

She says Idaho Power has the right to recover the investments it's made, but it should do so in a way that's more equitable.

"Customers should be paying depending on how much energy they use. That is the equitable way to do it, and the most economically fair way to do it," Young said.

However, Rodriguez said "Idaho Power is proposing to collect fixed costs through fixed charges and variable costs through variable charges. Currently, the majority of fixed costs are being collected through energy charges, which results in higher energy users subsidizing lower energy users – even though many of the costs of Idaho Power’s system don’t vary because of energy use. Our proposed changes seek to make cost collection among residential customers more equitable by better aligning fixed charges with fixed costs."

Public comments can be made through the Idaho PUC website here or by mail. Reference case number IPC-E-23-11.

Several people who have commented so far include seniors and people on fixed incomes. They're asking the PUC to reject the proposal, saying they won't be able to afford the higher monthly bills.

Public hearings are expected to happen this fall. A decision from the Public Utilities Commission could come by the end of this year or early next year.

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