Rocky Mountain Power proposes gradual rate increase over five years

Rocky Mountain Power last week proposed updated rates for residential customers in Idaho in a way that would equate to most seeing less than a dollar’s change in their monthly bills, though with heftier changes underway.

The change was proposed for two schedules: residential service and optional time-of-day residential service. It would be gradual, implementing a transition across five years that would increase the customer service charge on both. In turn, the company said this would allow energy charges to be reduced. Further, none of the changes would be strictly for the company’s own benefit–its revenue will not increase under the changes.

Specifically, Rocky Mountain Power asked for an increase to the fixed customer service charge to better tackle fixed costs, which represent the bulk costs of energy and are independent of energy consumption. These include measures like installing and maintaining neighborhood equipment like poles, wires, and transformers, as well as billing and customer services. In essence, the company’s pitch was that by increasing the customer service charge and decreasing its per kW hour energy charge, residential customer rates will better cover the actual costs of service and ensure fairness and balance for all, be they large or small users of electricity.

Currently, the per-month customer service charge sits at $8. Under the new proposal, at the end of five years, Rocky Mountain Power’s new charge would be $29.25 per month. The first change would bring bills from $8 to $12.25 for Schedule 1, with subsequent changes annually. Energy charges would be lowered in tandem to keep overall revenue the same.

The updated rates are subject to approval by the Idaho Public Utilities Commission.

As to Schedule 36, tiered rates that penalize customers with higher prices for larger monthly energy usage in the summer and winter would be phased out over a transition period. Three years into updates, the on-peak period would be shortened. The company stated that the most a customer’s monthly bill could increase would be approximately $4 in any of the annual price changes during the transition. Those who use more than average would see bills decrease.