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SALT LAKE CITY — Rocky Mountain Power is explaining the reasons behind a proposal that calls for a significant spike in customer electricity bills. Under the proposed new rate, residents would see their bills go up by about 30% at the end of the two-year rollout.
The proposal calls for raising rates by about 15% in 2025 and about another 15% in 2026. According to numbers provided by RMP, the average resident will see their monthly power bill increase by about $24 at the end of the two-year period.
"It is a lot. We recognize that," said RMP spokesman David Eskelsen. "But it's a feature of the inflationary economy that we've been through the last three years."
He said the last general rate increase RMP implemented was in 2020. Since then, he said, the cost of fuel for their power plants has gone up. Rates for wholesale power that RMP purchases have also risen, Eskelsen explained.
"That jump is responsible for about half of our rate increase request," he said. "The other major drivers are capital investments, things that we're building for customers that we've either completed or in the process of building this year."
Eskelsen said the power projects that make up the other portion of the increase request include finishing a 400-mile transmission line into central Utah, as well as updates and maintenance to existing power plants and transmission systems.
RMP filed an application last week asking permission for the increase with the state regulator, the Utah Public Service Commission.
"We filed an application containing sworn testimony, evidence, and basically all the receipts that we need to show our regulators that our actions over the past year have been reasonable and prudent," Eskelsen said.
It is a lot. We recognize that. But it's a feature of the inflationary economy that we've been through the last three years.
–David Eskelsen, Rocky Mountain Power
The application drew criticism from Utah Gov. Spencer Cox, who posted a statement on the social platform X harshly opposing the plan.
"The proposed rate increase from Rocky Mountain Power would be laughable if it wasn't so dangerous. The proposal is completely unacceptable," Cox wrote. "The audacity and lack of awareness with this request seriously calls into question management at RMP. I will do everything I can to make sure a rate increase of that magnitude never sees the light of day."
"I think the governor and our customers can have confidence that the Public Service Commission will appropriately analyze the company's request," Eskelsen said, in response to Cox's statement.
Eskelsen said RMP is trying to mitigate the impact on customers through the two-year, two-step increase.
"We're mindful that this presents a hardship for people, and we understand that," Eskelsen said. "But the cost to serve customers is something that it's important to stay current with."
A 30% price spike can come as a huge shock, and shoppers at the Centerville Walmart Monday were surprised to hear of the proposal.
"What costs do they have that are requiring a third?" wondered RMP customer Marianne Morris. "That's a third of the bill increase. That's significant."
She was especially concerned for residents who don't have much wiggle room in their budgets.
"Particularly for people who are on a fixed income, a lot of elderly people," Morris said. "And with the economy the way it is right now, that could be a make-or-break for people trying to buy groceries."
Annie Hill talked about how she understands that when the price of one thing — like gas or groceries — increases, other goods and services tend to increase as well.
"It's just a matter of planning for everything," she said.
Hill is hoping for enough notice to adjust when the final RMP power rate is settled.
"I just think about preparing for the future and how I would need to know what kind of impact that's going to have," Hill said.
The process for approval, Eskelsen explained, takes about eight months and involves live hearings, witness cross-examinations and presentation of evidence behind the proposal.
The Utah Public Service Commission will then decide the final rate moving forward.
