Deseret News | Utility's cutback plan could run afoul of state law

Reader comments
Utility's cutback plan could run afoul of state law

US West did it, Didn't threaten | 1:35 a.m. Sept. 4, 2008

US West (former Utah phone company) many years ago, did something similar. They didn't threaten to do this, they just did it, then they denied doing it. Utah wasn't the only place they did it to, I read they were doing the same thing in Colorado.

People as a result of their service cutbacks had to wait a great amount of time for new service in some areas.

The Colorado public service comission made an order that until regular service is hooked up, the company would have to provide people with a cell phone. Cell phones were much more expensive in those days.

The Utah public service comission made no such order. When US West told them they were trying their hardest, for some reason the Utah public service commission accepted this and made no such order and Utah people had to wait or buy their own cell phones.

My guess is that US West did this for similar reasons, to make a greater profit, at least in the short term. No doubt to allow the top execs to cash out on some lucrative stock options.

We need to be fair to RM power, investigate and see if raise warranted.

Stand Up! | 5:51 a.m. Sept. 4, 2008

RMP should respond like any other business in tough times. They have 6 executives that make $150,000 BONUSES, on top of 250,000-400,000 salaries. How about cutting all the TV ads? They're a monopoly for crying out loud-no need to spend money on advertising. They watched Big oil bend us over & are thinking- "our turn" to make big profits.

liberal Larry | 6:36 a.m. Sept. 4, 2008

Ever notice how the utilities decide to cut customer service, when they don't get their rate increases? They don't reduce the wages of the top management, or reduce the ranks of middle level management, it's always the thing that will most impact customers. It is such a blatant attempt to black mail the consumer that it's almost comical.

Comments continue below

RAM | 7:28 a.m. Sept. 4, 2008

It's called competition! Open up our markets and let people compete for the Utah consumers dollar and we won't have this pathetic excuse for a private company who gets to monopolize the market. These guys are asking for price hikes every single year and some times multiple times per year. I own a small manufacturing business. I need to raise my prices too, but I haven't for nearly 3 years because I have to compete against other companies who are trying to find ways to make their products less expensive to take my customers. You adjust or die, unless your RMP who can just go and complain to a board and get a price hike nearly on 100% of their customers almost anytime they want.

Richard | 8:34 a.m. Sept. 4, 2008

If RMP takes this course of action...then the consumers can reciprocate somewhat in a similar fashion by ALL customers delay paying their bill for 60 days....let's see how they like that. They are not the only ones that can act unilaterally. When public companies act like this...then that is when people start to think that having government run such entities is a good idea...that is when it gets scary.

DC | 8:58 a.m. Sept. 4, 2008

It seems awfully greedy, doesn't it? I mean, we are all feeling the pinch due to gas prices, natural disasters, slow economy, etc., and yet the big execs continue to control industries, feed their own glutony, cash out as times get hard for the rest of us, and live on their spoils.

Where are the morals and ethics of CEOs, CFOs, and board members? While they live off the fat of their gouging, the work-a-day person and his dependents continue to suffer.

Arrogance + incredible entitlement issues + huge egos = the fall of a country's economy.

Anonymous | 10:10 a.m. Sept. 4, 2008

Talk about whiners, RMP should be fined for their outrageous behavior. And claiming they can't keep up with growth? The developers and home owners pay RMP for all the growth costs. RMP pays nothing. For any new development or subdivision, the developers pays all, 100%, of the costs--there is no cost to RMP.

When a homeowner builds on a property, the homeowner pays all, 100%, of the cost of bringing power to that new home. RMP has no growth costs, but they do get a lot of new customers who pay them every month for their service.

So, please, tell me where RMP's "growth costs" are? This same argument holds true for cities, they bear none of the cost of the growth in their cities, the developers pay for every penny of that cost; and the city just gets new customers who pay them every month; not to mention the impact fees, building permits, and other fees the cities charge.

Joe | 10:45 a.m. Sept. 4, 2008

It may be time for the State of Utah to take over both the power utility and natural gas utiliy companies in Utah. When private sector companies are no longer satisfied with reasonable profits they should get out of public utility business.

Maybe it's Time | 10:51 a.m. Sept. 4, 2008

Why not have the state take over the Utilities. Then they could take the profits and fund such things as:

welfare
health care
bankruptcies
job losses
forclosures
Legislator's pay

Stewart | 11:02 a.m. Sept. 4, 2008

I had a son that used to throw tantrums when he didn't get what he wanted. Then he would pout and not talk for a while, but then get over it. Thanks to the Public Service Commission for standing up to this self-centered child, Rocky Mountain Power. If they actually carry out their threat, we are not helpless to deal with them.

This is what we see | 11:03 a.m. Sept. 4, 2008

now and seldom hear
However this is nothing new
We the People will always pay
When you can not fight City Hall
Quite clear there is a problem
City Hall is people that serve the public???
Well that is what they are ELECTED to do
Our ELECTED Oficials are failing us and not doing their jobs
No protection from BAD Government
Utah

Science Teacher | 12:36 p.m. Sept. 4, 2008

Having govt. take over utilities only takes us two steps further into the fire.

We need to get govt OUT of utilities and open up the market to competition, including alternative sources of energy.

Then we'll see them squirm.

Regular Joe | 1:05 p.m. Sept. 4, 2008

It is quite interesting that RMP will deny its customers the service for which they pay. One post asks, what is RMP's growth costs. That is the 1700 miles of transmission lines that they want to build from WY to OR and into NV. They want the additional money to fund upcoming projects. Ever heard of the problem in Northern UT on the Populus Line. I have heard that this will cost in excess of $500 Million, but they will make about $1 Million per hour once it is in service. They could save at least $ 100 Million by following an existing corridor up there, but they insist that they need the additional capacity and have to buy land for the new corridor. Since RMP is going to stick it to the hostage customer maybe they don't need that new line.

bubba | 1:41 p.m. Sept. 4, 2008

If the power company manages to accomplish this somehow then all there little tax breakes the state gives them , take them away. also take away all there benifits when it comes to equipment deasel fuel regular gas natural gas ect. see how they like being under the gun for a change .to make the people suffer ; for ther stupidy is just plain dumb on there part.,

Private Sector Worker | 1:56 p.m. Sept. 4, 2008

My sister-in-law works for another utility company in SL County and I the private sector... She's received 2 raises this year and at least one every year past, since she has worked for the company. I've worked 10 years for same privates sector company and received 3 raises over that time peroid. To save costs, my company has suspended summer and Christmas parties, my SIL has 2 company parties every year. She also receives the latest software updates each time one is released and the company sends her to school to learn about the changes. MY SIL doesn't have a heavy workload and is the family internet search professional.. on company time. I hope you see where I'm going with this... I'm on the side of 'let them hold back on merit and cost of living increases and other employee incentives to get their books in line. Reduce bonuses for a season.' RMP should be doing everything in their power to get their books in order before going after our shrinking dollars. Kudos to the PSC... please continue to be there for all of us.

Adam McMillen | 1:59 p.m. Sept. 4, 2008

I agree with the science teacher. It is almost laughable that the government is going to force RMP to provide utilities for free. No business can run for free. And all the talk about the management's pay has nothing to do with running a business. If RMP's management was not compensated for the work they did they would not work there. At any rate, this is proof positive that anything that get's politicized by the government always turns out bad because of "politics". The government should not be in the private business of providing energy to its citizens. Otherwise, we look like the old soviet union. Wait, we do look like the old soviet union. Where next?

Adam | 2:39 p.m. Sept. 4, 2008

RMP isn't run by the government. They are just a monopoly that throws big bucks at legislators.

Susan | 3:43 p.m. Sept. 4, 2008

Consumers are told to put their thermostats at 80 degrees and sweat out the summer. Then come Fall RMP checks their books (if they have any) and realize their revenues are down. They then ask/threaten a rate increase or your electricity will be turned off or reduced because they don't have the revenues to "stay afloat". Seems to me that the message they are sending is "put your thermostats back down to cooler evels so we can make more money." Maybe we should get Al Gore to check this one out! :)

Oil vs. RMP | 3:45 p.m. Sept. 4, 2008

Everyone is upset about gases prices and the fact that people outside the US control the prices. RMP is an American OPEC! So do we just have to bow to the company demands or can we do something about that besides just cut our power?

Greed | 3:48 p.m. Sept. 4, 2008

If Questar cut back on what I am guessing is millions of dollars in bonuses paid out to management, they could maintain good customer service. It comes across as, when Questar management has the choice of paying salaries to the worker bees to provide quality customer service, or pay themselves obsene salaries and bonuses, they choose the latter. Typical Corporate America. And we wonder why American products are inferior to Japanese products. It is the greed of management and boards of directors.

lost in DC | 4:04 p.m. Sept. 4, 2008

I have to believe RMP is a little disingenuous when they say increased use by existing customers. I know my power bill was lower this summer than last. When you consider rates were higher this year than last, that means I really cut my power consumption. Maybe I'm the exception.

wYo8 | 5:22 p.m. Sept. 4, 2008

competition has already been tried and it failed. remember Enron.

David | 7:17 p.m. Sept. 4, 2008

THANK YOU Public Service Commission! You took a hard look at the rate increase and did not rubberstamp it. Thanks for being watchdogs of the public's money with this monopoly. Hopefully, Rocky Mt Power will try to be more efficient in the future instead of automatically increase costs.

Free Market economics | 9:53 p.m. Sept. 4, 2008

This is interesting to me. I live in Sacramento. We have the lowest rates in the state. Our utility is publicly owned.

Rocky Mt is a business. You don't want government controlling business. This is the magic hand of the free market working. Enjoy!

tigerlily | 10:31 p.m. Sept. 4, 2008

hmmmmmmmmmmmmm Us west is still here in utah, now known as qwest. same company different name

arc | 11:05 p.m. Sept. 4, 2008

RMP could be replaced anyway. We can generate enough power using methane gas from pig and turkey farms, together with hydro, and geothermal, let alone solar and wind...

Doesn't this company realize that RMP got in trouble a few years ago when my power was out over 3 days just after Christmas.

If they want to throw their weight around, we can tell them to find an other state. What are they going to do with their equipment and lines?

Warren Buffet is an idiot.

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