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Utah PSC hearing: Division, OCS and WRA back Rocky Mountain Power’s Natrium PPA, urging commission approval
Summary
In a hearing on Docket 25-035-55, Division staff, the Office of Consumer Services and Western Resource Advocates told the Utah Public Service Commission they support a settlement that would allow Rocky Mountain Power to enter a PPA for TerraPower’s Natrium Kemmerer Unit 1, subject to confidentiality protections and post‑operation reporting.
The Utah Public Service Commission heard testimony and argument on a settlement stipulation in Docket 25-035-55 recommending approval of Rocky Mountain Power’s power purchase agreement for TerraPower’s Natrium commercial demonstration plant, Kemmerer Unit 1.
Company witness Dan McNeil summarized the deal as a PPA for a 345‑megawatt sodium‑cooled fast reactor paired with a molten salt storage system, saying the configuration enables flexible operation "from 100 to 500 megawatts for up to 5 and a half hours." He told commissioners Pacificorp did not run a standard solicitation because the project is first‑of‑a‑kind and that the contract contains confidential risk‑mitigation and pricing provisions meant to limit exposure to ratepayers.
The Division of Public Utilities’ technical witness David Williams testified that, after review and negotiation, the Division found the settlement "just and reasonable in result" and recommended approval. Williams said the Division initially sought supplemental IRP modeling to compare Natrium with optimized alternatives under Utah admin and statutory rules but that the settlement’s requirements — including commitments to evaluate portfolios both with and without Ku1 in future IRP updates and annual performance reporting after commercial operation — addressed the Division’s concerns.
Cameron Ermes of the Office of Consumer Services told the commission the PPA “qualifies for a waiver” of the solicitation requirement, noted the plant-plus‑storage technical profile the company described, and said the OCS believes the PPA’s pricing structure and protective features provide appropriate safeguards for Utah ratepayers.
Karl Boothman of Western Resource Advocates said WRA had monitored the proposal and, based on the time‑limited opportunity and the PPA’s protective provisions, did not oppose approval.
Commissioner Harvey asked technical questions about a related water‑use arrangement and how the Kemmerer plant’s surplus interconnection would operate with the existing Naughton units; McNeil clarified the arrangement transfers the actual water use while the company retains water rights and explained scheduling and priority provisions in the contract. Commissioners also pressed witnesses on the potential for project delays and how quickly a commission order would need to issue; McNeil said months — not days — would likely be acceptable but reiterated uncertainty for first‑of‑a‑kind projects.
No party objected to admitting the parties’ testimonies and confidential exhibits into the record during the hearing. The settlement filed March 13, 2026, memorializes commitments that the parties say protect customers, including contract features limiting Utah ratepayer liability for construction‑cost overruns, required IRP consideration of portfolios both with and without Ku1, and annual performance reporting beginning after the first full quarter of commercial operation.
The commission did not take a formal vote during the hearing. The chair thanked the parties, said the matter would be processed and an order issued as the commission’s workload allows, and adjourned the proceeding.
