Utah PSC hears Rocky Mountain Power bid to recover rising excess liability insurance costs; allocation and James verdict disputed

The Utah Public Service Commission heard multi-day testimony this week in the Rocky Mountain Power general rate case (Docket No. 24-035-04) on whether the utility may recover sharply higher excess liability insurance (ELI) premiums and how those costs should be allocated across states.

Why it matters: Rocky Mountain Power told the commission the company faces unprecedented increases in the cost and availability of liability insurance tied to growing wildfire risk, and asked the commission to (1) allow deferred accounting for incremental ELI premiums paid since August 2023 and (2) permit recovery of higher test-year premiums through base rates and a proposed insurance cost adjustment (ICA). The outcome would affect the utility’s 2025 revenue requirement and how much Utah customers pay for insurance costs that the company says protect customers from large third‑party liability losses.

Summary of requests and dollar figures - Rocky Mountain Power told commissioners it seeks deferred accounting for approximately $104,400,000 (Utah‑allocated) in incremental ELI premiums paid since its August 15, 2023 policy period, a figure the company updated in Phase 3 testimony. - For the 2025 test year the company asked to include $185,700,000 (total company) in annual ELI premiums in the revenue requirement; Rocky Mountain Power witness Shelly McCoy described Utah’s portion of the late‑2023 policy period incremental amount as about $49,500,000 and the Utah portion of the later 08/15/2024 policy as about $54,900,000 (the two Utah allocations together underpin the $104.4M deferral the company identified). - The company proposed creating an insurance cost adjustment (ICA) — a rider to separate insurance costs from base rates and to provide a procedural vehicle for later consideration of a new multi‑state insurance mechanism (including possible self‑insurance components).

What company witnesses said - Joelle Stewart (Rocky Mountain Power) summarized…