Utah PSC trims Rocky Mountain Power request, approves $87.2 million revenue increase and raises low‑income credit

The Utah Public Service Commission on April 25 issued an order reducing Rocky Mountain Power’s requested rate increase and approving a $87.2 million change in the company’s revenue requirement. Chair Jerry Phan said the final decision reduced the company’s amended request and limited costs passed to Utah customers.

The order matters because it lowers the prospect of a large jump in household electricity bills while allowing the utility to recover a portion of its proposed investments. The commission said it balanced the company’s need for investment with protections for Utah ratepayers, and it increased the low‑income lifeline credit to provide immediate relief for people on fixed incomes.

In filings and at hearings, Rocky Mountain Power had asked for a large increase that was amended several times; by the time the case reached the commission the company’s amended request had been reduced but still sought substantially more than the commission allowed. Chair Jerry Phan summarized the commission’s decision in the published order, saying the commission approved a revenue increase “of 87,200,000,” and that the order results in a modest residential bill change. Phan read the commission’s calculation that the approved change equates to “a bill increase of $4.31 a month or 4.7%” for an average residential customer using about 700 kilowatt‑hours a month; multifamily customers saw a smaller average dollar and percentage change.

The commission described multiple areas where it reduced the company’s requested recovery. Commissioners declined full recovery of costs tied to wildfire exposures and related insurance that the record showed reflected risks concentrated outside Utah. The commission used Rocky Mountain Power’s actual capital structure for the test year rather than the company’s proposed hypothetical 50/50 equity‑debt mix, in part because the record tied the company’s reduced equity position to payouts and liabilities outside Utah. The order also limited recovery of some out‑of‑state policy costs and certain contract claims and adjusted forecasts for net power costs.

The commission also noted a customer‑facing change: it raised the low‑income lifeline credit from $13.95 to $18 per month to help households on fixed incomes absorb rising bills. Commissioners said the increase can be funded from surplus in the existing lifeline program without a material effect on other customers.

The order is a final written decision of the commission, but commission staff noted regulatory procedures allow parties to seek rehearing under commission rules. The commission said it will continue to scrutinize proposed investments, and it will consider whether proposed wildfire mitigation and capital programs provide cost‑effective reductions in risk versus other mitigation approaches.

The commission said it will further review issues tied to transmission and resource planning in upcoming dockets, including work on advanced transmission technologies and the company’s next integrated resource plan.