Following months of rigorous legal arguments, hearings, and testimony from economists and scientists like Utah Clean Energy’s Dr. Logan Mitchell, the Public Service Commission issued its decision on Rocky Mountain Power’s request to raise monthly bills for electricity customers. Despite denying the bulk of the requested increases, the Public Service Commission approved a 4.7% electricity rate increase for Rocky Mountain Power customers. But as we’ve said before, the fine print on electricity rates matters. Combined with a separate ruling last year that approved a 10% increase in Energy Balancing Account rates due to coal and fuel prices, net electricity rates will increase 15% from last summer.
Look at your Energy Balancing Account for the Total Net-Increase
As a refresher, last year Rocky Mountain Power asked the Commission to approve a 30% rate increase for all Utah customers, primarily due to spiking wildfire liability insurance costs, wildfire mitigation, and rising coal and gas fuel prices. In a separate utility proceeding, the Commission allowed Rocky Mountain Power to charge an additional 10% to customers in the Energy Balancing Account, due to rising coal and gas fuel prices.
The Energy Balancing Account is a separate portion on all Rocky Mountain Power customer bills that includes fuel costs not covered in a general rate case. With the 10% granted to the Energy Balancing Account, Rocky Mountain Power then lowered its requested rate increase to 18%, which is what the Commission just ruled on, allowing for a 4.7% increase in base rates. It is important to note that base rates and the Energy Balancing Account are two separate line items on your bill. The net effect is that customer electricity prices will have increased by 15% since last summer.
We encourage ratepayers to keep a close eye on the Energy Balancing Account line item on their monthly electricity bill and stay informed, as future decisions will impact energy costs and investment priorities.
Low-Income Lifeline Assistance Credit Gets a Boost
One important element of the Commission’s decision was enhancing the Home Electric Lifeline Program that provides electricity bill assistance to qualifying low-income or fixed-income customers. The program now offers an $18.00 a month bill credit (up from $13.95) to assist with electricity bills. Find out more about this program and if you qualify!
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.