Utah Public Service Commission approves $87M raise for Rocky Mountain Power rates

On May 21, 2025, the Utah Legislature's Public Utilities, Energy, and Technology Interim Committee convened to discuss significant developments in energy regulation and infrastructure, particularly focusing on recent legislative actions and their implications for utility rates and services in the state.

A key topic of discussion was House Bill 201, which aims to enhance the planning and implementation of advanced transmission technologies. Representative Watkins, a sponsor of House Bill 212, emphasized the importance of encouraging investment in these technologies, highlighting a forthcoming presentation by the Pew Charitable Trust in July that will further explore this area. The committee expressed a strong interest in ensuring that Utah remains a leader in energy innovation.

Another major focus was Senate Bill 132, which mandates the establishment of a flexible large load tariff to accommodate the growing demand from data centers. The committee is currently finalizing a request for proposals (RFP) for an independent consultant, as required by the new legislation. This bill is particularly relevant given the increasing energy needs of large data centers, which are becoming more prevalent in Utah.

The committee also addressed the recent general rate case involving Rocky Mountain Power, which sought a substantial rate increase. Initially requesting $667 million, the company later amended its application to $393 million. Ultimately, the Public Service Commission approved a more modest increase of $87.2 million, translating to a 4.7% increase for average residential customers. This decision reflects a careful balancing act by the commission, which faced significant public scrutiny and a complex array of stakeholder interests.

The commission's deliberations were characterized by a rigorous process, involving extensive hearings and testimony from various parties, including consumer advocates and environmental groups. The commission's decision to limit the rate increase was influenced by concerns over costs associated with out-of-state liabilities and the need to protect Utah ratepayers from excessive charges linked to Rocky Mountain Power's financial practices.

In addition to rate adjustments, the committee discussed the importance of wildfire mitigation strategies. The commission rejected a proposed $371 million capital expenditure plan from Rocky Mountain Power, citing a lack of adequate cost-benefit analysis. Instead, they advocated for more effective vegetation management practices, which could provide a more economical approach to reducing wildfire risks.

As the meeting concluded, the committee underscored the need for ongoing dialogue and collaboration among stakeholders to navigate the evolving energy landscape in Utah. The discussions highlighted the critical balance between fostering innovation in energy technology and ensuring fair and reasonable rates for consumers. The anticipated next steps include further evaluations of the proposed transmission technologies and continued scrutiny of utility rate requests as the state prepares for future energy demands.