Utah Power seeks record hike

Electricity may get more expensive for customers of Utah Power, which asked state regulators on Tuesday for a $197 million increase, the largest amount ever requested in the utility's history.

Customers can expect their electric bills to rise $120 more a year — a $10 monthly increase for a typical residential customer using 753 kilowatt-hours — if the company's request is granted. The increase would go into effect in December.

The utility said the 17 percent increase over current revenue levels is needed because of a rising number of customers switching to central air conditioning over evaporative coolers, forcing the utility to meet high summer peak electricity demands.

In addition, the company has embarked on a number of pricey capital improvement projects that include two new power plants, new environmental upgrades to the Huntington generation plant and transmission investment improvements.

"The growth that the state is experiencing requires us to pursue increased investment," said Dave Eskelsen, a spokesman for Utah Power. "Given our obligation to serve, there isn't another option. Electric rates are still an excellent value and will remain so even if the company gets the full effect of the increase. Rates on average will still be lower than they were 20 years ago."

David Ward, a Millcreek resident who in the past has been critical of the utility's maintenance programs, said customers today are having to make up for the utility's lack of investment during the 1990s, resulting in steeper rate increases today.

"Customers paid for the maintenance in the 1990s — it was included as part of the rates — but it was never done," Ward said. "Now the company wants to charge them a second time."

Rich Walje, president of Utah Power, said in a prepared statement that in recent years Utah Power has had to provide service for an additional 14,000 to 18,000 new customers each year.

"To provide for these new customers, plus maintain our system," Walje said, "the capital investment in Utah's distribution system alone is running more than $115 million annually."

Public Service Commission hearings on the rate request have yet to be scheduled but will probably take place in the fall. The approval process can take up to eight months.