Rocky Mountain Power asks for $66.9 million rate hike

Published: Thursday, July 2, 2009 9:15 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 

Rocky Mountain Power is asking the Utah Public Service Commission to grant a rate increase of $66.9 million, effective early next year.

If approved, the hike would cost the average residential customer about an extra $2.70 per month, or about 4.5 percent on average, the company said.

"The proposed increases range between 4 to 6 percent for different customer classes," Rocky Mountain Power spokesman Jeff Hymas wrote in an e-mail to the Deseret News.

He added that residential customers would receive the lowest increases, based on the proposal.

"Because customer demand for electricity is growing, Rocky Mountain Power has been investing billions of dollars in new generating plants, transmission systems and distribution facilities," he said. "As these investments begin to provide service to customers, it's appropriate that their costs become part of customer rates."

Michele Beck, executive director of the Utah Office of Consumer Services, told the Deseret News that according to the utility's research, a 4.5 percent increase would be particularly unwarranted for homeowners.

"Their own study … doesn't justify giving that rate increase to the residential consumers," she said.

Story continues below

Beck said Rocky Mountain Power submitted information in its request indicating that residential electric customers should be subject to a 0.6 percent increase, much less than the 4.5 percent average being requested.

Under the proposal, the utility wants to raise its fixed monthly "customer charge" to $5.70 from the current level of $3. The charge is a regulated amount that each residential consumer is required to pay to cover expenses such as administrative costs and the costs of a meter and a power line to a home.

Beck said her agency is still in the process of reviewing the documentation for the request. Preliminary hearings on the proposal would likely take place this fall, with a decision possibly coming by December.

In April, the commission granted the utility a 3.34 percent hike. The utility had originally requested a $160 million rate increase in July 2008, but eventually agreed on the $45 million amount.

E-mail: jlee@desnews.com

Recent comments

I DEMAND A RATE DECREASE!

AS AN AMERICAN | July 4, 2009 at 7:35 p.m.

these rate hikes are not going towards benefits and raises. They are...

concerned | July 3, 2009 at 9:59 a.m.

This utility company has been and is the most expensive utility that...

Excessive costs | July 3, 2009 at 4:58 a.m.

previousnext

Latest comments

True. It's not terribly funny and if it has any effect on society, it won't...

Letters: Christian founders

What else would you expect to find in a book called "The Founders on Religion"?

5A: Davis runs over Hunter

Ok not to be rude here, but check the stats, Hinds isnt first in yards and...

t-hinds = best player in utah

Anonymous: Was that English? I though conservatives believed if you are in...

Attack meant to kill apostle

Wow! Glad the Lord kept you safe. Separate comment: That was a horrible...

5A: Bingham rolls to title game

I have never been to a Utah high school game before as I am not from the...

Sponsor for gay-rights bills found

It would behoove the above commenters to recall that religion, including our...

Vandals take advantage of young Utes

Only 8000 attendance? BYU had 16,000+ tonight. What is wrong with Ute fans?...

ian you are the 3A MVP If you win next week so just do it that would be nice....

Advertisements
Advertisement