Rocky Mountain Power Lowers Rate Increase Proposal: What Does It Mean for Utah Customers?

Rocky Mountain Power Lowers Rate Increase Proposal: What Does It Mean for Utah Customers?

Hold on to your hats, Utah! Rocky Mountain Power has just dialed down its proposed rate increase for residential customers, offering some much-needed relief. Originally aiming for a hefty 30.5% bump, they've now lowered the request to a more modest 18.1%. So, what’s going on behind the scenes, and what does this mean for you? Let’s break it down.

A Brighter (and Cheaper) Path Ahead

To reduce the impact on customers, Rocky Mountain Power submitted a revised proposal to the Utah Public Service Commission. Their initial plan would have raised residential rates significantly, but now they’ve slashed that increase by nearly half. The new proposal suggests taking residential rates from 10.96 cents per kWh to 12.94 cents per kWh starting in February 2025. That’s still a jump, but much smaller compared to the original two-phase hike, which would’ve raised rates to 14.31 cents per kWh by 2026.

For the average Utah household, this new plan means an increase of about $14.28 per month, down from the originally proposed $24.14. It's not ideal, but it could’ve been worse!

Why the Change?

According to Rocky Mountain Power, the decision to reduce the proposed increase came after listening to customers’ concerns about rising costs. They’re also revisiting the amount allocated for insurance premiums for 2025, a chunk of which stems from increased wildfire-related costs.

“We’re continuing to look for ways to ease the financial pressure on our customers,” said David Eskelsen, a company spokesperson. They’ve also mentioned revising their Energy Balancing Account (EBA), which adjusts for fluctuating power prices that are out of the utility’s control.

The Catch: Energy Costs Aren’t Done Rising

While this rate adjustment is certainly welcome news, it doesn’t mean prices will stop climbing altogether. The company’s costs for net power, fuel, and wholesale electricity will still need to be recovered in the future, potentially through the same Energy Balancing Account that saw a separate 11.6% hike earlier this year.

Eskelsen emphasized that while Rocky Mountain Power is focused on easing the burden now, they still need to cover costs to remain financially viable. “We’re regulated to ensure transparency, but customers need to know that price increases are part of the reality as we manage rising costs.”

Utah Leaders Weigh In

This move comes after some pretty intense backlash. The original 30.5% increase raised eyebrows across the state, including from Governor Spencer Cox, who wasn’t shy about his disapproval. “The audacity and lack of awareness with this request seriously calls into question management at Rocky Mountain Power,” he wrote on X (formerly Twitter). Legislative hearings further scrutinized the company’s proposal, with some lawmakers even suggesting shareholders shoulder some of the cost.

There’s also been talk of splitting PacifiCorp, Rocky Mountain Power’s parent company, into two regional entities: one for Utah, Idaho, and Wyoming, and another for the West Coast. Lawmakers are exploring this as a potential way to gain more control over utility pricing in the region.

What Energy Experts Are Saying

Utah Clean Energy, a nonprofit dedicated to advancing clean energy, welcomed the reduction but issued a word of caution. “While this is good news in the short term, most of the increase is still tied to fossil fuel costs and rising insurance premiums due to wildfires,” said Logan Mitchell, a climate scientist and energy analyst. “This highlights the need for more renewable energy sources like wind, solar, and geothermal to protect consumers from volatile fuel prices in the future.”

What's Next?

As of now, Rocky Mountain Power’s updated request asks to recover $393.7 million through the rate increase—significantly lower than the original $667.3 million. This includes $92.9 million for insurance premiums and $21 million for wildfire mitigation.

While the 18.1% increase is a step down from the initial proposal, it’s important to remember that future hikes might still be on the horizon. But for now, at least, Utahns can breathe a little easier knowing the rate hike isn’t as steep as originally planned.

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