Rocky Mountain Power proposes settlement in Utah rate conflict

SALT LAKE CITY — Rocky Mountain Power last week proposed a settlement with the Utah Public Service Commission to add a 4.2% rate hike on top of the 4.7% increase commissioners approved last year.

The proposal comes on the heels of both public and political outcry surrounding potential electricity rate hikes,

The agreement, which has yet to be reviewed by the commission, aims to reduce customer bills in the near term, supports rate stability through 2028 and includes $2 billion in investments into Utah “to support reliability, resilience and continued economic growth across the state,” according to a release from the company.

“This is a strong and balanced outcome for Utah,” Dick Garlish, president of Rocky Mountain Power, said in a release. “It delivers what our customers consistently tell us they want most — stable and predictable costs, reliable service and continued investment in the communities we serve.”

In 2024, the energy giant proposed a significant rate hike that would’ve increased residential bills by about 30%, before lowering it to 18%.

Still, the proposal drew widespread criticism at the time, with Utah Gov. Spencer Cox calling it “unacceptable.”

“The proposed rate increase from Rocky Mountain Power would be laughable if it wasn’t so dangerous,” Cox said in a social media post. “The audacity and lack of awareness with this request seriously calls into question management at RMP. I will do everything I can to make sure a rate increase of that magnitude never sees the light of day.”

The commission in 2025 eventually approved a 4.7% increase, significantly lower than the proposed 18% increase.

The latest settlement terms “include a $93 million increase in general rates of 4.2% increase, or $3.44 for an average residential customer, effective July 1,” read the release from Rocky Mountain Power.

Also on July 1, customers will see an average 10.6% decrease in energy charges on their bill due to adjustments to the Energy Balancing Account.

Together, these changes will reduce a typical residential customer’s monthly bill by about $11 per month, according to Rocky Mountain Power.

And two years after sharply criticizing rate hike proposals, Cox appears happy with the latest settlement terms, voicing support for it in a social media post where he touted Utah as being home to “some of the lowest electricity rates in the nation.”

“This proposed settlement helps preserve that advantage by providing rate certainty for families and businesses, strengthening accountability, and supporting the investments needed to keep our electric grid reliable,” Cox said. “I’m pleased to see all parties come together after months of hard work to find common ground. The Public Service Commission will now conduct its independent review, but this proposed agreement is an encouraging step for Utah families and businesses.”