Rocky Mountain Power drops rate increase proposal to 18.1%, down from 30.5%

Photo: Unsplash // Michael Poitner

SALT LAKE CITY, Utah – Rocky Mountain Power has adjusted its proposed rate increase for Utah customers, reducing the hike from 30.5% to 18.1%. The company cited customer concerns as a key reason for the revision. The new proposal would raise residential rates to 12.94 cents per kWh by February 2025, resulting in a $14.28 monthly increase for the average household. While the initial rate increase has been scaled back, future price hikes remain possible due to ongoing energy costs and infrastructure projects, officials at Rocky Mountain Power said.

Rocky Mountain Power initially faced backlash over its proposed 30.5% rate hike, with Utah leaders, including Governor Spencer Cox, strongly opposing the measure. The revised proposal reflects the company’s attempt to balance necessary cost recovery with public concern. However, experts warn that the remaining increase is still tied to rising fossil fuel costs and wildfire-related insurance premiums, signaling potential rate spikes in the future.

The company’s revised application now seeks to recover $393.7 million, including higher insurance premiums and wildfire mitigation costs, through the rate increase.

Why it matters: This adjustment could bring temporary relief for Utah residents, but the underlying issues driving the rate hikes suggest that further increases may be on the horizon.

Experts from Utah Clean Energy say it is still important to add more zero fuel cost energy like wind, solar, and geothermal to protect customers from rising and volatile fuel prices.