Utility's cutback plan could run afoul of state law
Rocky Mtn. Power says 2.7% hike not enough
Utah Public Service Commission spokeswoman Julie Orchard said Wednesday that state law requires the utility to provide "adequate electric service to Utah customers."
Rocky Mountain Power, the state's largest electric utility, said late Tuesday that effective Sept. 15, it would implement sweeping changes that include reducing customer service and eliminating discretionary maintenance. The utility also said that it would "ultimately consider curtailing electric service when the cost of purchasing electricity to serve customers in Utah is prohibitive and exceeds the funding the commission provided to purchase and generate electricity to serve customers."
The company on Tuesday filed a legal appeal challenging the commission's decision this month to approve a $33.4 million rate hike, when the utility had requested more than twice as much. The company received a 2.7 percent rate increase but had asked for a 5.6 percent hike.
Rocky Mountain Power said the increase the commission granted was not enough to meet the utility's needs to serve its growing customer base.
Orchard said that if the company believed it was not granted a sufficient rate increase to meet its obligations, then it should go through the appeal process set forth by state regulators, rather than cutting back on service.
Phil Powlick, director of the state Division of Public Utilities, said Wednesday that the utility's plans to curtail service "raise questions about Rocky Mountain Power's ability to meet their obligations to serve customers."
The state's utility watchdog on Wednesday criticized Rocky Mountain Power for its plan to scale back service. Michele Beck, director of the Committee of Consumer Services, said the commission had given careful consideration to each line item in the utility's request.
"If the utility doesn't have enough to run its business, then it's its own fault," she said.
Rocky Mountain Power in July filed an application with the commission requesting a total rate increase of $160.6 million, or 11.2 percent more than the utility was charging customers at that time.
Last December, the utility had requested an increase of $161.2 million. But the commission in March issued an order requiring the company to reduce its rate-increase request to $99.8 million. The company reduced its request again in May to $84.5 million and yet again in June to $74.4 million.
But in its final order last month, the commission determined that the increase should be $33.4 million. The utility also has a second request that is pending before the commission. The second request, for $85.2 million beyond the amount of the first request, was an attempt to eventually gain the $160.6 million overall rate boost.
Recent comments
RMP could be replaced anyway. We can generate enough power using...
arc | Sept. 4, 2008 at 11:05 p.m.
hmmmmmmmmmmmmm Us west is still here in utah, now known as qwest....
tigerlily | Sept. 4, 2008 at 10:31 p.m.
This is interesting to me. I live in Sacramento. We have the lowest...
Free Market economics | Sept. 4, 2008 at 9:53 p.m.
- Funds for new courthouse approved 1:48 a.m.
- Godfrey vetoes Ogden budget 1:48 a.m.
- Odd Fellows Hall move 1:47 a.m.
- 2 country groups to perform 1:47 a.m.
- Rumor has Boozer with Bulls 1:20 a.m.
- Jazz in back of line for free agents 1:19 a.m.
- Okur signs two-year extension 1:18 a.m.
- Marion to Mavs, Stackhouse to Griz 1:16 a.m.
- Price for redistricting plan challenged 1:04 a.m.
- Basketball campers learn service 1:02 a.m.
- Rumor has Boozer with Bulls
- Stadium of Fire flag burning was fake
- Jazz in back of line for free agents
- Okur signs two-year extension
- Restaurant destroyed by fire
- Jazz won't meet Lopez on Europe trip
- A primer for the 6th Potter film
- Blazers may offer Millsap a contract
- AK will not play for Russia this summer
- Jazz rally for OT win at Orlando
- Bronco collecting a galaxy of recruits
138 - Letters: Palin mistreated
136 - Teachers struggle with district cuts
134 - Blazers may offer Millsap a contract
122 - Rumor has Boozer with Bulls
82 - Fairness of BCS debated
81 - Moon landing: Let's hear from you
73 - Chaffetz eyes challenging Bennett
72 - Services bids farewell to Jackson
70 - Letters: Time for a revolution
69
Through the years, I've always raised eyebrows whenever I tell people...
The photographs are mysterious, brooding, dark. They show dimples and...
Blazers get the unbalanced trade they seek while not signing Millsap away...
Ricky Bobby - THE JAZZ DO NOT WANT TO TAKE BACK EQUAL SALARIES. They want to...
Despite the fact that logging has all but stopped in the pacific northwest...
My understanding of what FAIR is trying to do, is to provide well thought out...
Jazz will resign Milsap. If they don't it will be ahuge mistake. First off,...
I was waiting for it to be burned on the big metal structure right by the...
Hey Ute fan... the Utes had a good season. And keep throwing that BCS bowl...
Tyrus Thomas is in the last year of his contract too so what is the point for...
CougarKeith, people don't know how to properly retire the flag, what they did...
It is just talk but since it was brought up: IF we can get Prizbilla &...


