Rocky Mountain Power’s 18% rate hike is not low enough says Utah house speaker

SALT LAKE CITY — Rocky Mountain Power has scaled back its rate hike request. But Utah’s House Speaker said Friday it’s not low enough.

The utility company recently amended a filing with the utilities commission to propose the new hike. RMP originally requested a 30% increase but has lowered it to 18% for residential users. When commercial users are factored in, the rate hike comes down to 16.7%.

“We understand that a rate increase is never welcome for anybody,” RMP spokesman David Eskelsen said. “And it’s difficult when a rate increase from the utility company comes after so many inflationary driven increases.”

If the hike is passed, the average customer will pay a little over $14.28 more each month beginning next year. That’s compared to the average $24-a-month increase the previous hike suggested.

Rocky Mountain Power argued that it needs the money to help cover higher fuel costs from power plants as well as higher insurance costs.

“The commodities that we use, natural gas, coal, the power purchase from other utilities on the open market, those have all increased in price,” Eskelsen said.

The lower rate comes after the power company received months of pushback — including from Utah’s top Republican office holders.

Cox tweeted in June that he would make sure the 30% rate hike never sees the light of day. Lawmakers have also questioned whether shareholders could shoulder some of the costs.

Do lawmakers like the new rate?

In reaction to the new hike, House Speaker Mike Schultz, R – Hooper said that he’s grateful the rate was lowered and appreciated RMP for listening to feedback, but said the new rate isn’t low enough.

“We still think it needs to come lower,” Schultz said. He didn’t specify where that threshold would be.

“No hike is a good hike, but we understand that it probably has to go up. But we’re working as hard as we can to keep it as low as possible,” he said.

Schultz blamed Oregon, California and Washington for driving up costs. Pacificorp — RMP’s parent company — services those states, along with others.

“What you’re seeing is you’re seeing the costs from other states, California, Oregon and Washington be pushed onto states like Utah, Idaho and Wyoming. And that’s what we don’t want to see,” Schultz said.

The speaker said they have asked the company to give them a proposal of what it would look like to break away from those three states in particular.

“The policies that we’ve put in place so far have kept Utah the number one lowest state in the nation for energy costs,” he said. “We will do whatever it takes to keep rates low for the citizens of Utah.”

Eskelsen said it will be up to the public utilities commission whether or not the 18% rate hike sticks. That’s who will ultimately decide whether the rate hike gets approved.

If it is approved, the new rates will take effect in February 2025.