Rocky Mountain Power workers cover transmission line transformers in wildfire mitigation efforts. The utility has filed a proposal with the Utah Public Service Commission that would end a two-year battle over rate hikes. Photo courtesy Rocky Mountain Power.
Rocky Mountain Power (RMP) has filed a stipulated settlement with the Utah Public Service Commission that may resolve issues in a general rate case that has been brewing since 2024. The commission has yet to rule on the proposal.
According to a press release from RMP, the proposal “delivers cost stability, near-term customer benefits and a clear path for future investment in Utah.”
Under RMP’s proposal, users would see a 4.2 percent rate hike added to 4.7 percent increase commissioners approved in 2025. According to the utility, the new hike would add $3.44 to the average residential customer’s monthly bill.
But the hike also comes coincidental with a market adjustment decrease of 10.6 percent which RMP math said will reduce a typical residential customer’s monthly bill by about $11 per month, making the overall impact of the two adjustments a net decrease in power bills for RMP customers.
In the proposal, Rocky Mountain also commits to not file another rate increase application until 2028. The utility also said the offer “advances a framework to bring forward approximately $2 billion in investments to support reliability, resilience and continued economic growth across the state.”
“This is a strong and balanced outcome for Utah. It delivers what our customers consistently tell us they want most — stable and predictable costs, reliable service and continued investment in the communities we serve,” Dick Garlish, president of Rocky Mountain Power, said in the release.
In 2024, RMP filed a 30.5 percent rate hike application with the commission. After considerable backlash from Utah political leaders, including a social media vow from Gov. Spencer Cox that such a hike “never sees the light of day,” the request was lowered to 18.1 percent. Bills were even proposed in the Utah Legislature aimed at the rate hike.
The utility brought action in the Utah Supreme Court when the commission rejected its appeal of the rate hike refusal. That case has been put on hold by the new proposal.
The Public Service Commission eventually allowed a 4.7 percent power rate increase — almost a 75 percent reduction in RMP’s reduced request.
Cox voiced support for the recent offer from RMP in a social media post.
“Utah has some of the lowest electricity rates in the nation, and keeping them that way matters,” Cox wrote on X. “This proposed settlement helps preserve that advantage by providing rate certainty for families and businesses, strengthening accountability and supporting the investments needed to keep our electric grid reliable.”
Rocky Mountain Power also committed to be subjected to “earnings test to ensure appropriate financial performance.” The utility said the test would ensure that the company does not over-earn. It also touted the avoidance of prolonged litigation as an incentive to settle the dispute with its new proposal.
“The agreement reflects a shared commitment to balancing affordability, reliability and long-term investment while maintaining a financially healthy utility that serves as the backbone of Utah’s economy,” RMP’s statement said.
The utility also said Derek Miller, president and CEO of the Utah Chamber, was behind the settlement.
“Sound energy policy is key to Utah’s continued prosperity and competitiveness,” RMP quoted Miller as saying. “We believe Utah’s energy future depends on affordability, reliability and sustainability. We commend all the parties who negotiated this settlement in good faith. Their willingness to work together reflects the kind of thoughtful, balanced approach Utah needs to meet its growing energy demands.”
No date has been set for a ruling from the Public Service Commission, although the board said it is actively considering the proposal.
