Rate settlement could bring 1.4 percent increase to Rocky Mountain Power customers
Following a settlement between Rocky Mountain Power and five other parties to its most recent rate request, the utility’s Idaho customers will see rates increase about 1.4 percent, or $3.8 million, to address the long-term costs of modernizing power production, transportation, and delivery.
Rocky Mountain Power’s original review request was filed with the Idaho Public Utilities Commission in May. If approved as proposed, the settlement would yield new base rates $8 million, or 2.9 percent, higher than at present. The company would then apply the remainder of a proposed federal tax refund ($8.5 million) over the next two years, after which the net increase of approximately 1.4 percent would result.
“Rocky Mountain Power is proud to serve our customers with affordable, safe, reliable, and increasingly clean electricity,” Joelle Steward, senior vice president of Rocky Mountain Power, said. “Rocky Mountain Power has the lowest average electricity price of any large electrical utility in the Intermountain West with prices that are about 44 percent lower than the national average.”
For the average residential customer, the result would be a base rate increase of about $4.44 per month and a net increase of about $3.02 per month. Customer service charges for residential and general services would also increase. It would mark the first increase to Rocky Mountain Power’s base rates since 2014.
The company noted that even with the rise in costs, the increasing rollout of renewable energy and electric grid upgrades will nearly double the amount of renewable energy capacity available to its customers in the future. Owing to the lack of fuel costs associated with these new sources, Rocky Mountain Power predicts they will end up saving customers hundreds of millions of dollars over the duration of those renewable facilities’ lifespan.
These updates followed compromises between Rocky Mountain Power, the Idaho Public Utilities Commission staff, Idaho Irrigation Pumpers Association, Bayer Corp., and PacifiCorp Idaho Industrial Customers. They will only come to fruition if the commission approves them, though, following a review. If approved, they will go into effect on Jan. 1, 2022.
