SALT LAKE CITY — A war of words is erupting between Rocky Mountain Power and the commission that regulates the utility over a significant proposed rate hike.
Now the Utah Supreme Court is being asked to settle the fight.
Last week, the Public Service Commission once again rejected Rocky Mountain Power’s request for a rate increase. The electric utility sparked controversy and public protest when it proposed a stunning 30% rate hike last year. It lowered the request to 18% but the commission ultimately only granted a 4.7% increase. Rocky Mountain Power filed for a reconsideration.
“The Order denies recovery of a substantial portion of the costs the Company has incurred and must incur to address Utah legislature-directed initiatives, mitigate customer risks, make needed investments, and provide affordable and reliable services to Utah’s growing population,” Rocky Mountain Power said in its filing, adding: “It also appears outcome-driven and frequently reaches conclusions that depart from statute and Commission precedent or that are unsupported or even contradicted by the evidence. Indeed, many conclusions in the Order cite no evidence at all or ignore evidence that was admitted in hearings when it would lead to a different result.”
In its latest order, the Public Service Commission fired back.
“At the outset, the PSC wishes to address the hyperbolic, intemperate, and occasionally disrespectful tone of RMP’s Request,” it said, accusing the utility of flinging “baseless, sweeping accusations.”
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The utility has now appealed to the Utah Supreme Court.
“We believe our request for cost recovery was both prudent and reasonable and consistent with past commission decisions. In good faith, through the rate request, we submitted significant evidence to recover the costs of serving customers in Utah and to position the company to make necessary investments as cost-effectively as possible on behalf of our customers. We work diligently to manage costs and limit the need for rate adjustments. However, we cannot always absorb the rising costs of delivering the reliable service our customers expect without seeking a rate increase,” Rocky Mountain Power said in a statement to FOX 13 News.
The Public Service Commission’s rejection of the reconsideration request was first reported by Utah News Dispatch.
Michele Beck, director of the Utah Office of Consumer Services who acts as the state’s top utility consumer watchdog, told FOX 13 News on Thursday it’s the tone of the filings that is unusual.
“It’s very unusual to come in and make an appeal through attacking the body who will decide whether or not they grant reconsideration,” she said.
Beck has intervened in the case on behalf of ratepayers, siding with the Public Service Commission in not granting such a large rate hike.
“We’re not talking about just any corporation and just any lawsuit. We’re talking about a regulated monopoly utility provider who provides an essential service to the consumers of Utah,” she said. “That’s what’s troubling here. I think that this tone is not helping us get to the right answer, the best way to serve the public and meet the public interest.”
Rocky Mountain Power said its appeal is about protecting customers.
“We intend to exercise our right to pursue the full appeal process in an effort to preserve the health of the utility and protect customers from adverse consequences following the order, which include yesterday’s credit rating downgrade,” it said in the statement to FOX 13 News. “Credit rating downgrades increase costs for customers and severely hinder the company’s ability to make needed energy investments in Utah, a key driver of economic growth.”
The rate hike issue has invoked the wrath of Capitol Hill. Last year, FOX 13 News first reported that House Speaker Mike Schultz, R-Hooper, threatened legislation over it. Since then, Republican leaders in the Utah State Legislature have threatened to break up Pacificorp, which oversees Rocky Mountain Power in Utah, Idaho, Wyoming, Washington, Oregon and California. They have accused the utility of trying to make Utah ratepayers cover policy shifts and wildfire costs in other states. Rocky Mountain Power executives have been summoned to legislative hearings where they have faced grillings as they defended the rate hikes as necessary to deal with factors like inflation, weather, and insurance costs.
“The rate is a significant issue that affects all Utahns. We’re in close communication with the parties involved as we navigate this complex matter,” Senate President J. Stuart Adams, R-Layton, told FOX 13 News in a statement.
Governor Spencer Cox also weighed in on Thursday, signaling his office was watching with interest.
“Protecting Utah ratepayers is one of my top priorities. Affordable, reliable power has long fueled our economy, maintaining a stable and predictable environment for energy investment while keeping costs low for families and businesses. As the courts weigh in, we hope that the result will be to maintain this balanced approach to ensure the maximum benefit for Utah families,” he said in a statement to FOX 13 News.