SALT LAKE CITY — Rocky Mountain Power in June released its 2024 rate proposal that included a 30% increase to residential customers before dropping that increase to 18% amid outcry from customers and even Utah Gov. Spencer Cox.
But customers of the company — a division of the much larger PacifiCorp — aren’t happy with that rate cut and say the power giant will still get its desired 30% increase through “creative” and “sneakily done” avenues.
“This reduction may be less impactful than it looks on the surface. When taking a closer look, we found that the utility plans to recoup much of the costs from the original rate increase through the Energy Balancing Account. While separate from your bill’s per-kilowatt costs, the Energy Balancing Account remains a line item on electricity bills, meaning the overall financial impact on customers has not changed,” Logan Mitchell, a climate and air quality scientist at the University of Utah wrote on a Utah Clean Energy blog post.
The company submitted new documentation to the Utah Public Service Commission in August, amending its Utah revenue increase request from $667.3 million to $393.7 million, or 41% less than it originally requested. It also cut its residential rate increase from about 30% over the next two years to a one-time increase of 18.1% that could go into effect on Feb. 23, 2025.
On Monday, a handful of customers gathered for a Utah Public Service Commission public hearing on Rocky Mountain Power’s proposed rate increase to voice their displeasure with that and more.
“We know that they’re going after that 30%. We know that there’s a charge that would come out to $62 a year average for Utahns,” said Stan Holmes, who was representing Utah Citizens Advocating Renewable Energy and the Utah Chapter of the Sierra Club. “We know that the rates are going to be going up because of the wildfire fund. … The rates are just going up and up and up, and climate change is driving it, and we’re driving climate change by burning fossil fuels.”
Rocky Mountain Power President Dick Garlish, in a meeting with Utah legislators in August, explained that the increase would partially cover the rising costs of operating plants and purchasing wholesale power since the company last raised its rates in 2020. It would also address the rising insurance rates tied to power companies and wildfires.
Sen. Scott Sandall, R-Tremonton, and others voiced concerns at the time that Utah residents were paying for PacifiCorp’s recent lawsuit settlements tied to massive fires in Oregon.
PacifiCorp has agreed to pay over $700 million over the past year to businesses and residents impacted by the 2020 Oregon wildfires, whose causes were traced back to power lines.
These concerns raised by lawmakers months ago were rehashed during Monday night’s hearing, with many speakers saying the rate hike could disproportionately impact older adults on fixed incomes and other disadvantaged groups.
“I understand the need to maintain the energy grid and transition to cleaner energy, but Rocky Mountain Power is a highly profitable company,” Jeff White said. “Shouldn’t they shoulder more of the burden? Asking seniors and vulnerable populations to foot the bill is simply unfair. We need solutions that balance corporate responsibility with community needs.”
Another common grievance was the fact that a few months before the rate hike was proposed, Rocky Mountain Power unveiled its Integrated Resource Plan, which lays out the long-term future for the company.
This updated plan included a rollback of renewable energy initiatives and recommitment to coal.
“I want to see Rocky Mountain Power get serious about utility-scale storage, like Xcel is doing in Colorado; you know, they’re thinking creatively,” Holmes said. “Rocky Mountain Power is still in the coal box. They need to be focusing more on solar. They need to promote rooftop solar. They don’t seem to get it, and what they understand is pressure from the public.”
Jerry Fenn, chairman of the Utah Public Service Commission, said the commission will be issuing a decision on the 18.1% rate increase by April 25, noting that the matter involves “many days of hearings.”
