SALT LAKE CITY — The Utah Public Service Commission on Jan. 14 admitted into the record a settlement that resolves Phase 2 issues in Rocky Mountain Power’s 2024 general rate case, including rate spread, rate design and new terms for very large customers.

The stipulation, presented by Rocky Mountain Power and supported by the Utah Division of Public Utilities and the Office of Consumer Services, would change how increases are allocated across customer classes, raise the residential customer charge for single-family homes from $10 to $12 and for multifamily units from $6 to $7, and create a consolidated residential time-of-use (TOU) pilot capped at roughly 10,000 participants. Robert Meredith, director of pricing and tariff policy for PacifiCorp (Rocky Mountain Power’s parent), told the commission: “I recommend that the commission approve the phase 2 stipulation.”

The settlement spells out specific class adjustments: Schedule 6 (midsized general service) would receive a price change 1 percentage point below the overall average increase, Schedule 8 (large general service) would receive 0.5 percentage point below the average, certain small general service and irrigation classes would receive 0.4 percentage point below the average, and lighting schedules (7, 11 and 12) would receive 3 percentage points below the average. “All other classes will receive an equal percentage base revenue increase necessary to recover the base revenue requirement approved by the Commission,” the stipulation states.

On residential rate design, the settlement keeps the existing first-to-second block differential in place while raising the customer charge as noted above. The parties also agreed to consolidate the legacy Schedule 2 and the electric vehicle Schedule 2E into a new residential TOU pilot that would take effect Dec. 1, 2025, and would be capped at the first 10,000 enrollees. Meredith said the cap is intended to “minimize the administrative burden” during an initial evaluation period; the company will stop taking enrollment requests once the cap month is reached. After the cap is hit and one year of program evaluation data is available, the company will work with parties to evaluate whether to change the cap.

Division witness Matt Pernickelly told the commission the Division participated in negotiations and concluded the settlement “is just reasonable in result and supported by evidence in the record,” and that it avoids “extensive cost shifting to residential and low load customers.” The Office of Consumer Services also indicated support on the record.

The settlement removes Rocky Mountain Power’s proposal to move base energy balancing account (EBA) rates into tariffed treatment and defers that discussion. It also changes the company’s initial proposal for very large customers: instead of a capacity reservation charge, new and growing customers that reserve 50,000 kVA (50 megawatts at unity power factor) or more would face a minimum demand charge and an excess power charge; customers under 200,000 kVA would be subject to a contract with a term of the load ramp plus five years and a power charge equal to the higher of actual measured on-peak power or 75% of reserve capacity. Prospective very large customers would need sufficient credit or collateral at the company’s election to cover minimum on-peak power charges for at least five years. The stipulation directs that revenues associated with the new charges for very large customers be deferred by the company and proposed for amortization for the benefit of Utah customers in a future proceeding.

The settlement also includes several uncontested, company-proposed items: a higher customer charge for three-phase residential service, elimination of Schedule 22, and expanded applicability of Schedule 300’s underground station fee to qualifying existing customers. Changes to other line-extension rules in Regulation 12 were agreed to be addressed in a separate investigatory docket (Docket No. 24-035-43) focused on very large customer load requests.

Commissioners asked the company to provide two follow-ups: (1) a comprehensive list of issues not spelled out in the stipulation but nonetheless resolved by it, and (2) a rate-spread calculation showing impacts to other classes under an agreed baseline methodology so the commission can see the magnitude of effects on residential and other customers. Company counsel said the firm will circulate both items to parties by the coming Tuesday and file materials with the commission by the end of the week. Chair Fenn said the commission will issue an interim ruling once it has reviewed the follow-up materials.

On the record, Walmart did not sign the stipulation but indicated it does not oppose it. Multiple intervenors signed the settlement package; Rocky Mountain Power said all settling parties except Walmart have signed. The commission noted that if it rejects or conditions approval of the stipulation, parties reserve the right under the stipulation to withdraw and proceed to an evidentiary hearing on Phase 2.

No formal evidentiary vote was recorded in open session beyond the commission’s admission of the stipulation into the docket record and the admission of pre-filed direct, rebuttal and surrebuttal testimony for Phase 2 as stipulated by the parties.

The commission also reminded parties of remaining schedule items in this docket: a public witness hearing scheduled for Jan. 29 at Southern Utah University and Phase 3 of the docket, which will address excess liability insurance and wildfire mitigation issues. The commission aims to issue a final order in this docket on or before April 25, 2025.