Utah Clean Energy calls on the utility to revise their analysis and account for low-cost renewable projects and federal tax credits

SALT LAKE CITY, UT – Customers of Utah’s largest utility, Rocky Mountain Power, could be on the hook to pay $10 billion more for electricity than they would have under the utility’s previous energy plan that called for substantially more renewable energy resources. Utility experts with Utah Clean Energy filed a formal motion this week urging PacifiCorp (Rocky Mountain Power’s parent company) to provide deeper analysis of tax-advantaged energy resources, arguing the utility did not fully evaluate lower-cost options for its customers in the 2025 Integrated Resource Plan (IRP) update.

“During a time of rapidly rising demand for electricity and inflated costs, our goal is to diversify and grow Utah’s energy mix while locking in the most affordable energy now,” states Dr. Logan Mitchell, Climate Scientist and Energy Analyst with Utah Clean Energy.

The massive cost increase is driven in part by a pivot away from low-cost renewables in favor of coal and gas, while ignoring a time-limited opportunity to procure renewable energy projects that could qualify for expiring federal tax credits designed to save ratepayers money.

Despite skyrocketing energy demand, Rocky Mountain Power claimed in its IRP update that no renewable, tax-advantaged resources are needed to meet Utah’s energy demand. In contrast, Interwest Energy Alliance, a regional trade association representing renewable energy developers and manufacturers states, “If Rocky Mountain Power initiated a request for proposal right away, it is very likely that selected projects could meet the tax-credit deadlines, and Utah ratepayers would benefit from the reduced costs,” states Chris Leger, Staff Attorney at Interwest Energy Alliance. 

The $10 Billion Increase

The utility’s updated IRP includes zero new solar, wind, or geothermal resources for Utah customers, and limited battery storage. The only new generation proposed for Utah is gas, coming online in the mid-2030s, and a nuclear demonstration project in 2032. By comparison, the previous IRP included 1.4 GW of wind and solar, and 2 GW of battery storage.

“Utah has some of the best clean energy potential in the nation, with solar, wind, and geothermal resources ripe for near-term development,” states Dr. Mitchell. “Our utility should be putting those homegrown resources to work for our communities and economy.

According to Utah Clean Energy’s review of the IRP filing, the financial impact of this shift includes:

• $4 Billion increase in costs due to increased reliance on polluting fossil fuel resources that are exposed to volatile fuel prices.
• $ 6 Billion in lost savings by failing to secure available tax-advantaged resources.

“Based on the IRP, it appears the utility is cherry‑picking energy resources and data that do not reflect the reality of Utah’s energy market. We have a ready pipeline of cost-effective, shovel‑ready clean energy projects. By omitting them from proper analysis, the utility is backing Utahns into a more expensive, more volatile energy mix,” states Dr. Mitchell.

A Tale of Two Portfolios

By comparison, a recent resource procurement process in Colorado focused on bringing clean energy projects to market in time to qualify for tax credits. That resulted in a rapid and competitive market response with bids totaling 41,900 MW of new clean energy resources, with most projects listing commercial online dates of 2029–2030. The Colorado analysis found significant ratepayer savings from this opportunity, noting that accelerating procurement of tax-advantaged resources will save Colorado customers approximately $4.97 billion.

“As more Utahns are struggling with rising costs and energy burdens, the utility has a responsibility to pursue the best, most cost-effective resources for its Utah customers,” Mitchell said. “That did not happen in this IRP update.”

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Media Contacts: Email info@utahcleanenergy.org for interviews.

BACKGROUND

PacifiCorp (Rocky Mountain Power’s parent company) released its final update to its 2025 Integrated Resource Plan (IRP) for Utah in March. This is the utility’s roadmap for meeting electricity demand for its Utah customers in the “least-cost, least-risk” way. The updated IRP raises serious concerns about cost, risk, and missed opportunities for Utah customers, particularly as Utahns brace for increased electricity rates due in part to rising fossil fuel prices.

Key takeaways include:

• Zero new solar, wind, or geothermal resources, and limited battery storage, for Utah customers over the next 20 years
• The only new generation proposed for Utah is gas (mid‑2030s) and a nuclear demonstration project in 2032
• Increased reliance on market purchases from other states and less local energy generation
• Increased exposure to fossil fuel price volatility, particularly as global conflicts disrupt fuel markets
• The only new low‑cost renewable resources in the utility’s service territory are planned for customers in Washington and Oregon

Most concerning, the IRP overlooks some of the most significant cost‑saving opportunities available today: new solar, wind, and battery storage projects in Utah. Analysis from Lazard confirms that, “On an unsubsidized $/MWh basis, renewable energy remains the most cost‑competitive form of generation.”

Click here for more on the March IRP Update.

Leveraging Tax-Advantaged Energy Resources Amplifies Savings
Prior to submission of the final IRP, Utah Clean Energy asked the Public Service Commission in September 2025 to open an expedited investigatory docket to explore fast‑tracking clean energy procurement in Utah to capture expiring federal tax credits.

Despite the narrow window, developers can still qualify for Section 45Y Clean Energy Production Tax Credits and Section 48E Clean Electricity Investment Tax Credits if projects are approved and underway within the federal timeline. These credits dramatically reduce electricity costs and translate into substantial long‑term savings for Utah families and businesses.

In its response order, the Utah Public Service Commission stated, “To the extent opportunities exist for RMP to capitalize on time-limited opportunities to fill existing resource needs with projects that can be reasonably expected to qualify for expiring, beneficial tax-treatment, the PSC expects RMP to pursue them. The PSC gives notice that it will expedite its consideration of any applications RMP files to solicit or procure such resources.”

Read more about the ruling here.