Brace Yourself: Another Rocky Mountain Power Rate Hike Looms for Wyoming Residents

If this sounds familiar, it's because Rocky Mountain Power (RMP) is once again seeking to raise your electric bill by 12.3%. This trend of annual rate hikes is becoming the "new normal" unless we push back against the radical policies driving these increases.

A Troubling Pattern

This is far from the first time RMP has proposed a rate increase, and it likely won’t be the last. In 2023, Wyoming citizens and several elected officials successfully challenged RMP’s attempt to raise rates by nearly 30%. The Public Service Commission (PSC) ultimately approved a much smaller increase of 8.3%. Despite this setback, RMP is now suing the PSC for $23 million plus attorney fees for the portion of the rate hike they weren't granted—a lawsuit that would ultimately be paid for by taxpayers and ratepayers.

Back-to-Back Rate Hikes: Rocky Mountain Power's Persistent Push for Increases

In 2022, Rocky Mountain Power (RMP) proposed a substantial $50.3 million fuel cost adjustment due to cost overruns. Alongside this, they sought to raise the ongoing “general rate” by $140.2 million, resulting in a combined 29.2% increase. This historic request prompted significant backlash from customers and local officials in Wyoming.

Legislative Response

The outcry inspired Wyoming lawmakers to pass five new laws granting the Public Service Commission (PSC) more authority to scrutinize electric utility investments that could impact Wyoming ratepayers. This legislative action aimed to ensure greater oversight and protection for consumers against steep rate hikes.

Public Opposition

During a formal hearing on October 25, 2023, Wyoming AARP Director Sam Shumway presented the PSC with a box containing approximately 5,000 written comments from members opposing RMP's proposed rate increase. This public opposition highlighted the widespread discontent among Wyoming residents.

Regulatory Decision

After months of public meetings and a detailed hearing in October, state regulatory authorities approved only an 8.3% general rate increase, significantly lower than the requested 21.6%. Additionally, RMP was permitted a one-time fuel cost adjustment. Despite this, RMP attempted to relitigate portions of the 2023 case, seeking an additional $32 million in charges that had been previously denied. The three-person PSC panel unanimously refused the request, expressing offense at one of the utility’s allegedly misleading arguments.

Future Rate Hikes

Although the state reduced RMP’s proposed rate hikes in 2023, there is nothing to prevent the company from presenting new evidence of rising costs to justify potential future rate increases. The Office of Consumer Advocate, still reviewing RMP's latest proposals, is likely to intervene, according to Consumer Advocate Administrator Anthony Ornelas.

Industrial Intervention

Wyoming Industrial Energy Consumers, representing major industries such as trona mines, oil and gas refiners, and other large customers that consume 70% of RMP’s electricity in the state, also plans to intervene in the case. Their involvement underscores the widespread concern over RMP's persistent push for rate increases. As RMP continues to seek higher rates, it remains crucial for consumers and regulatory bodies to scrutinize these proposals, ensuring that any approved increases are justified and fair.

A letter with comment from our owner to the Wyoming Public Service Commissioner

Dear Commissioners,

Thank you for the opportunity to provide public comment on Rocky Mountain Power's Integrated Resource Plan.

I am impressed with the depth and thoroughness of the planning process presented by Rocky Mountain Power. I will restrict my comments to two areas, both related to solar generation.

This moment in time marks a unique convergence in which the cost of solar is lower than ever, electricity demand is expected to increase more rapidly than previously expected, and transmission and interconnection constraints are increasing. The RMP IRP does not connect these dots to conclude that solar generation - both at the utility scale and at the distributed scale - offers a fast track to meeting market demand. When we also consider the value of reducing the carbon intensity of the power mix, it seems self-evident that RMP would favor rapidly increased solar development in its IRP. This, however, is not the case.

Utility-scale solar plus storage fills a role akin to dispatchable thermal generation but without the associated carbon risk. It is difficult to understand why this technology is not more central to RMP's overall plan. The Inflation Reduction Act creates a window of time during which such projects have an additional tailwind. RMP's ratepayers will be poorly served if their utility waits another ten years before shifting more of its focus to solar-plus-storage.

Distributed scale solar, including residential and commercial behind-the-meter generation, appears nearly absent in the IRP - and yet offers one of the most promising and cost-effective approaches to grid management and carbon intensity reduction. It is perhaps because distributed energy resources (DER)s are not owned by the utility that RMP does not actively build them into its IRP. Nevertheless, RMP's ratepayers would be beneficiaries of system-wide improvements should RMP create increased opportunities for DER additions throughout its operating area. DERs inevitably and always reduce demand on distribution systems. Generation at the point of use (behind the meter) serves the system in the same way that energy efficiency measures do. In fact, from a grid management perspective, DERs are indistinguishable from energy efficiency measures except that they reduce demand only during sunlight hours. Increasingly, residential and commercial solar is paired with energy storage systems, broadening the hours of the day when solar serves to reduce demand on finite generation and transmission resources.

A rapid increase in the deployment of DERs, especially with attached energy storage, would be a win for the ratepayers and the stability of the distribution system. Please require RMP to make specific goals to increase the addition of DERs throughout its operating area. Since DERs are generally built at the expense of the homeowner or business owner, this objective would be cost-neutral to the utility. The utility would merely need to shift its policy to be more permissive of DERs and to fill a role as a proponent and enabler. The PSC should provide RMP with a motivation to do so.

Thank you very much for the opportunity to participate in this important process,

Scott

Learn more about Scott Kane

Conclusion: Time to Demand Change

Make your voice heard!

The Wyoming Public Service Commission is asking for input on the RMP rate hike. Since the rate hike is driven by high fuel costs, we recommend you comment by reminding the PSC and RMP that their best way to protect customers from future rate increases is to accelerate the shift to renewable energy - both in utility-scale solar and wind and in distributed-scale rooftop solar. Send your email here.