Rocky Mountain Power faces scrutiny over $19M cost recovery and discriminatory charges in Washington

During a recent government meeting in Utah, significant discussions unfolded regarding Rocky Mountain Power's (RMP) request to recover costs through the Energy Balancing Account (EBA) for the year 2023. The meeting highlighted three key issues that could have substantial implications for local residents and their energy bills.

The first issue revolved around RMP's prior period adjustment for schedule 137 costs. The company is seeking to recover approximately $4.8 million in costs that were known but not included in the appropriate EBA period due to an oversight. The Office of Consumer Services (OCS) argued that these costs should not be recoverable since they were known at the time of the deferral period. This recommendation aims to protect consumers from paying for costs that the company failed to account for in a timely manner.

The second major topic addressed was the impact of the Washington Climate Commitment Act (CCA) on Utah customers. RMP is attempting to recover $19.4 million in costs associated with greenhouse gas emissions allowances required by Washington state. However, the OCS pointed out that this creates a disparity, as Utah customers would be subsidizing programs that primarily benefit Washington residents. The OCS has recommended disallowing these costs, emphasizing that other states have already rejected similar charges.

Lastly, the meeting discussed the rising net power costs and the growing deferral balance, which has raised concerns about RMP's reliance on market purchases. The OCS expressed worries that the current EBA mechanism does not incentivize the company to minimize costs for consumers. They suggested opening a new docket to investigate whether the EBA is functioning effectively as a risk-sharing mechanism or merely as a safety net for RMP's planning processes.

These discussions underscore the ongoing challenges faced by utility companies in balancing operational costs with consumer protection. As the Public Service Commission considers these recommendations, the outcomes could significantly affect energy rates for Utah residents, highlighting the importance of transparency and accountability in utility cost recovery practices.