A $6.1 million rate reduction affecting Utah Power & Light Co. customers will go into effect March 10.
The reduction stems from a stipulation agreement between UP&L, the Utah Division of Public Utilities and the Utah Committee of Consumer Services to implement a 1 percent rate reduction.The reduction is related to a commitment by Utah Power & Light Co. to reduce rates by 5 percent over a four-year period as a benefit of the company's 1989 merger with PacifiCorp. A 2 percent reduction was implemented last year in the first phase of the agreement.
While the basic rate will go down, some customers may not see a reduction on their bills because of an agreement that will allow UP&L to implement a surcharge to recover $2.8 million owed the company from the energy balancing account. That account is used to track fuel costs for generating power and under PSC rules, the company is entitled to recover those costs through semiannual rate adjustments. The company had sought a $3.3 million settlement.