Rocky Mountain Power's request for deferred accounting order faces opposition from regulatory division

In a recent government meeting held on March 23, 2025, the Utah Public Service Commission discussed Rocky Mountain Power's request for a deferred accounting order (DAO) related to increased insurance costs. The meeting highlighted significant concerns raised by the Division of Public Utilities (DPU) regarding the company's financial strategies and accountability.

The DPU recommended that the Commission deny Rocky Mountain Power's request to recover increased excess liability insurance (ELI) costs retroactively. The division argued that the company had the opportunity to address these costs more effectively by filing a general rate case earlier, a suggestion that Rocky Mountain Power did not pursue. This decision not to act has raised questions about the company's management of its insurance expenses and its responsibility for the increased costs.

Additionally, the DPU opposed Rocky Mountain Power's proposal for a new balancing account, known as the insurance cost adjustment (ICA). This account would allow the company to record ELI costs separately and charge customers outside of the established rates from a general rate case. The DPU expressed concerns that such a mechanism could diminish the company's incentive to find efficient ways to manage rising insurance costs, which are becoming a growing burden for consumers.

The meeting also touched on the company's request to recover an estimated $82 million in allocated ELI costs annually in the future. The DPU's stance suggests a push for greater accountability and transparency in how utility companies manage their financial obligations, particularly in light of rising operational costs.

As discussions continue, the implications of these decisions could significantly affect both Rocky Mountain Power's financial strategies and the rates paid by consumers in Utah. The Commission's forthcoming decisions will be crucial in determining how utility companies balance their financial needs with the interests of their customers.