Utah Supreme Court to Decide on Rocky Mountain Power’s Controversial Rate Hike

Ongoing Dispute Between Utility and Public Service Commission

SALT LAKE CITY — A significant conflict has emerged between Rocky Mountain Power and the Public Service Commission (PSC) regarding a proposed rate hike, prompting the Utah Supreme Court to intervene. The PSC recently rejected Rocky Mountain Power’s request for a rate increase, which has sparked public outcry and controversy.

Rate Hike History and Current Developments

Last year, Rocky Mountain Power proposed an eye-popping 30% rate increase, later revising it to 18%. Ultimately, the PSC approved only a 4.7% increase, leading the utility to seek reconsideration. In its filing, Rocky Mountain Power argued that the PSC’s decision denied recovery of essential costs incurred to meet legislative mandates and ensure reliable service for Utah’s growing population. The utility criticized the PSC’s conclusions as lacking evidence and departing from established precedents.

PSC’s Response

In a pointed rebuttal, the PSC described Rocky Mountain Power’s tone as "hyperbolic" and "disrespectful," accusing the utility of making "baseless, sweeping accusations." The commission emphasized the importance of maintaining a professional dialogue in regulatory matters.

Consumer Advocacy and Legislative Concerns

Michele Beck, director of the Utah Office of Consumer Services, expressed concern over the unusual tone of Rocky Mountain Power’s appeal. She emphasized the importance of a constructive approach, particularly given the utility’s monopoly status in providing essential services to Utah residents. Beck has intervened in the case on behalf of ratepayers, supporting the PSC’s decision to limit the rate hike.

Rocky Mountain Power’s Justification

Rocky Mountain Power maintains that its appeal is aimed at protecting customers. The utility stated, "We believe our request for cost recovery was both prudent and reasonable." They highlighted that credit rating downgrades resulting from the PSC’s order could lead to increased costs for customers and hinder necessary investments in energy infrastructure.

Political Reactions and Future Implications

The rate hike issue has drawn the attention of state lawmakers, with House Speaker Mike Schultz previously threatening legislative action. Republican leaders in the Utah State Legislature have even suggested breaking up Pacificorp, the parent company of Rocky Mountain Power, citing concerns that Utah ratepayers are unfairly shouldering costs related to policies and wildfires in other states.

Governor Spencer Cox has also weighed in, emphasizing the importance of affordable and reliable power for Utah families and businesses. He stated, "Protecting Utah ratepayers is one of my top priorities," as the state navigates this complex issue.

As the Utah Supreme Court prepares to weigh in, the outcome of this dispute could have significant implications for both Rocky Mountain Power and its customers, shaping the future of energy costs in the state.