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SALT LAKE CITY — Rocky Mountain Power is still seeking to increase its rates to combat the rising cost of producing power in Utah, but it's no longer seeking as high of a rate increase as it initially proposed.
The company submitted a new document to the Utah Public Service Commission on Wednesday, 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.
It still means the average residential customer will pay $14.28 more per month once the rate hike is implemented; however, there won't be another increase in 2026, according to additional documents submitted to the commission. The initial plan called for a $24.14 per month increase in total after smaller hikes in 2025 and 2026.
The change aims to "further mitigate the customer impacts" caused by increasing the general rate, Rocky Mountain Power officials explain in the amendment. The utility was also able to adjust its 2025 insurance premiums, which company executives said was one of the reasons behind such a dramatic rate increase.
"The company has heard the concerns of its customers regarding the requested increase in this case combined with other cost pressures and continued to review ways of further mitigating the impact of the requested increase on customers," officials wrote in the document.
The update comes after Utah legislators grilled company executives about the proposal during a pair of meetings last week. Rocky Mountain Power President Dick Garlish 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.
Rocky Mountain Power seeks 30% rate increase; Utah legislators want a company restructure
Rocky Mountain Power is proposing a large rate increase for its customers, but Utah lawmakers want a report to see if the company can change its structure."We have the obligation and the burden of proof to go before the Public Service Commission and show the money we spent to provide services, and the investment we made was prudent to the interest of the citizens of Utah and were worthy to recover the costs of what we spent," he said in one of the meetings.
However, lawmakers responded by asking Rocky Mountain Power — a division of the much larger PacifiCorp — to compile a report outlining the steps needed for its parent owner to change its organizational structure. Sen. Scott Sandall, R-Tremonton, and others voiced concerns 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 2020 Oregon wildfires whose causes were traced back to power lines.
"I think it's time we take a look ... to see if the citizens of Utah would be better served with states that more closely align with our policies and not be in a position that we absorb costs based on policy decisions from other states," Sandall said.
Gov. Spencer Cox also called the initial proposal "completely unacceptable" shortly after it was unveiled in June.
Residents have also voiced their concerns over the past few months in emails that are made public through the commission's website. Some called it "unconscionable," "unfair" and "irresponsible."
"This will place hardship on senior citizens and the large families that are in Utah," one resident wrote. "Everyone wants more money, but few have more coming in."
The Utah Public Service Commission will still review the 18.1% increase request before the request is fully or partially approved. Garlish explained last week that the final increase could be changed as it goes through a public process that could play out for up to a year.
