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Logan utility staff flags steep Rocky Mountain Power transmission increases; appeals planned
Summary
Utility staff told the council the regional transmission charge passed through by the power grid operator has surged; the city anticipates an additional $860,000 in transmission fees and is pursuing appeals through FERC and coordination with peer utilities to limit rate impacts.
Logan utility staff updated the council on July 16 about sudden, large proposed increases in regional transmission charges from grid operators and Rocky Mountain Power that may raise the city’s wholesale transmission costs significantly.
Mark Montgomery told the council that the city’s joint utility group observed a Pacific Northwest-driven transmission adjustment that, in one recent filing, amounted to a multiyear transmission increase proposal for the regulated utility. He estimated Logan’s obligation in the current year could grow by approximately $860,000 in transmission fees. The city’s usual practice has been to budget modest annual increases (about 2–3%), he said, and staff are trying to absorb near-term increases but could need a customer surcharge if appeals and negotiations do not reduce the final assessment.
Why it matters: Transmission-cost pass-throughs set by utilities and approved by state regulators can materially affect municipal power budgets and, if large, may lead to rate adjustments or temporary surcharges for customers. Montgomery said the utility group has filed an appeal at the Federal Energy Regulatory Commission (FERC) and is coordinating with peer organizations and associations to contest portions of the transmission filings.
Supporting details: Montgomery said Rocky Mountain Power had proposed a large percentage increase to transmission charges that the Public Service Commission would consider; staff clarified filings were under review and the final PSC decision was uncertain. He said the city planned to “pay the bill out of the gate” but pursue refunds if appeals succeed. Council members asked about timeline and potential surcharges; staff said appeals to federal and regional bodies can be slow but they are pursuing legal and advocacy options with other utilities.
Next steps: Staff will continue monitoring filings, pursue appeals and recommend budget adjustments only if necessary. The council asked staff to continue outreach and said they would return if a surcharge or other rate action becomes necessary.
