Mark Ellis urges PSC to reject Rocky Mountain Power's deferred accounting order

During a recent government meeting in Utah, discussions centered on the implications of Rocky Mountain Power's (RMP) rate case, particularly regarding the proposed Deferred Accounting Order (DAO) and insurance cost adjustments. The Office of Consumer Services (OCS) presented a compelling case against RMP's requests, emphasizing the need for transparency and fairness in how costs are allocated to ratepayers.

Mark Ellis, an OCS witness, highlighted potential benefits of self-insurance as a viable alternative to mitigate rising costs associated with the Electric Line Inspection Program (ELIP). He argued that RMP failed to provide sufficient evidence to support their claim that a recent court verdict did not impact ELIP costs, suggesting that the Public Service Commission (PSC) should deny the DAO request. Ellis proposed that if the PSC were to approve the DAO, costs should be shared between ratepayers and shareholders, as both parties benefit from the program.

Ellis also raised concerns about the current method of allocating ELIP costs, stating that the existing allocation based on the System Operations (SO) factor is outdated. He recommended a shift towards a model that considers wildfire risk, which he believes would lead to a more equitable distribution of costs among Utah ratepayers.

In addition to opposing the DAO, Ellis criticized RMP's proposal for an Insurance Cost Adjustment (ICA), labeling it as premature and underdeveloped. He urged the PSC to require RMP to report back on the feasibility of self-insurance within six to nine months, allowing stakeholders to assess the situation before the ELIP renewal in February 2026.

The discussions at this meeting underscore the ongoing debate over how utility costs are managed and the importance of ensuring that ratepayers are not unfairly burdened. As the PSC considers these recommendations, the outcomes will have significant implications for Utah residents, particularly in terms of utility rates and the management of risks associated with electric line inspections.