Since Rocky Mountain Power first proposed a dramatic rate hike for its Utah customers back in August, Utah Clean Energy’s experts have been knee-deep in analysis. Our findings show that spiking fossil fuel prices and costs related to climate change are driving the proposed rate increase – and that investing in clean energy is the best way to prevent ongoing rate hikes.
The proposed rate increase will be debated through multiple litigated proceedings before the Utah Public Service Commission over the coming months. Utah Clean Energy’s team is intervening in the proceedings, making the case that clean energy investments are the smarter choice for Utah’s wallets, climate, and energy future.
Marking the first step in this critical debate, we recently submitted two rounds of expert testimony in the rate case. First, we connected the dots between climate change and rising costs and risks to our energy system, especially from increasingly destructive wildfires. Second, we made the case for rate design innovations that will help Utahns save money and use more renewable energy to power their lives.
The Latest on Proposed Rate Hike
In August of 2024, Rocky Mountain Power proposed a 30.6% increase in electricity rates over two years. The proposal follows the utility’s announcement that it will delay much of its previously planned development of new wind, solar, and battery resources, opting instead to maintain aging and costly coal plants.
Following significant push-back and public outcry, Rocky Mountain Power amended its request, reducing the proposed increase from 30.5% over two years to an 18.1% increase in 2025. However, this reduction may be less impactful than it looks on the surface. When taking a closer look, we found that the utility plans to recoup much of the costs from the original rate increase through the Energy Balancing Account. While separate from your bill’s per-kilowatt costs, the Energy Balancing Account remains a line item on electricity bills, meaning the overall financial impact on customers has not changed.
Utah Clean Energy’s Analysis
Utah Clean Energy’s experts, along with several others, have analyzed Rocky Mountain Power’s proposal finding that an over-reliance on fossil fuels and costs related to climate change are significant factors behind the requested rate hikes. Rocky Mountain Power’s own filings attribute the increase to rising fossil fuel costs, supply chain disruptions, and climate impacts, including wildfire-related expenses and insurance premiums.
Unlike fossil fuels, clean energy sources such as wind and solar do not require fuel that can have volatile price changes, ensuring secure, stable energy prices for customers. Investments in Utah’s abundant clean energy can help safeguard against future rate hikes while curbing emissions and leveraging local energy.
Much More to Follow
Utah Clean Energy’s work in this case extends beyond the regulatory process. We’re engaging with Utah’s leaders and policymakers to ensure they understand the long-term economic and environmental benefits of accelerating clean energy investments. In addition to the financial impact on Utah families and businesses, the outcome of this rate case will have significant implications for Utah’s transition to a clean energy system and our collective efforts to combat climate change.
Stay tuned as we continue to work toward fair, sustainable solutions for Utah’s energy future.
We would like to clarify that Utah Clean Energy is not a solar company. We are a nonprofit organization that advocates for solar and other clean energy technologies, but we do not install or sell solar in any way.