Utility met with officials prior to recant of service cuts

State leaders said Thursday that they had met with Rocky Mountain Power officials in recent days, prior to the company's decision this week to rescind its plans to reduce customer service due to what the utility said was an insufficient rate increase from the Utah Public Service Commission.

Senate President John Valentine and Senate Majority Leader Curtis Bramble told the Deseret News they met with company executives on Tuesday regarding concerns the utility had about the rate hike, which was lower than the company had expected.

Lisa Roskelley, spokeswoman for Gov. Jon Huntsman Jr., said the governor met with Rocky Mountain Power officials last week. Roskelley said the governor wanted to hear the utility's side of the story and to make sure that Utahns would have the power they need.

Valentine said the meeting he and Bramble had with Rocky Mountain Power included company president Richard Walje and Kevin Boardman, manager of government affairs for Rocky Mountain Power.

"Basically, what they were telling us was their perspective on what happened in the Public Service Commission," he said. "They didn't ask for anything, we didn't offer anything."

But Bramble said that during the conversation, he suggested that it would be in Rocky Mountain Power's interest to reconsider scaling back on service.

On Wednesday, Walje said he was opening discussions with state officials and others to make a case for billions of dollars in electric-system improvements that are needed in Utah. Walje also said the utility would back off of its previous edict to reduce customer service and maintenance because of inadequate funding granted by the commission in its most recent rate-hike order.

Rocky Mountain Power spokesman Dave Eskelsen said Thursday that the company would not discuss any specifics of any ongoing talks with state officials, but he said the utility has begun conversations to gain support for "the kinds of investments that Utah's growth requires."

That means building generating plants, transmission systems and distribution systems, as well as "billions of dollars of investment every year," he said.

Bramble said the Rocky Mountain Power officials told him that the commission's order did not allow the utility to recover some increasing "hard costs," such as property taxes.

He said if that proved to be true, then such an issue could possibly impact future investment in energy in Utah by outside interests.