SALT LAKE CITY — Rocky Mountain Power is offering a settlement in a long-running battle with Utah's Capitol Hill over rate hikes.
On Tuesday, the utility filed a stipulated settlement with the Public Service Commission. RMP claims it will result in a net reduction of customer bills in the short-term, with no new rate hike planed through 2028. It also plans $2 billion in investments in Utah.
The settlement would also include consumer protections like an earnings test to require RMP does not "over-earn" and ends pending litigation.
"This is a strong and balanced outcome for Utah. 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," Rocky Mountain Power President Dick Garlish said in a statement announcing the settlement.
RMP got the wrath of Capitol Hill in 2024 when it proposed a 30% rate increase, then dropped it to 18% after public pushback. The company justified the increases citing infrastructure costs, fuel costs and rising wildfire liability risks. A furious House Speaker Mike Schultz, R-Hooper, threatened legislative action that would break up the utility and lawmakers held hearings where they summoned RMP executives before them to be grilled.
Governor Spencer Cox called RMP's rate hike "laughable if it weren't so dangerous." The Public Service Commission denied the rate hike and the case was before the Utah Supreme Court. But on Tuesday, the settlement was filed.
Under the settlement terms, RMP said customers will see a net decrease in their bills of 6.4% overall for an average residential customer. Speaker Schultz said in a statement to FOX 13 News that he was pleased to see this resolved.
"I appreciate today’s agreement with Rocky Mountain Power. With no general rate increase for at least the next three years, this is a major win for Utahns and aligns with Utah’s commitment to keeping Utah’s energy prices among the lowest in the nation," he said. "Utahns deserve affordable, reliable energy, and we remain committed to keeping energy prices as low as possible while ensuring families and businesses have the dependable service they count on."
The agreement is expected to go into effect on July 1.
