Prices for Rocky Mountain Power increased due to high fuel costs and severe weather in 2023.
“As part of an annual review of these costs, the company requested an average 10.5% price increase for Idaho customers,” a statement from Rocky Mountain Power on Monday said. “A typical residential customer using 783 kilowatt-hours per month would see a 7.6% increase, or $7.39 per month on their electricity bill.”
This increase is set to take place on June 1, unless stated otherwise by the Idaho Public Utilities Commission.
“We recognize that in difficult economic conditions, a price increase is not good news,” said David Eskelsen, spokesman for Rocky Mountain Power. “Despite these difficulties, we remain committed to bringing the best value to our customers for their hard-earned dollars.”
The main reason for this cost adjustment is disruptions in coal supply and inventory, which began in late 2022 and continued in 2023.
“We’ve worked diligently to control the costs we can control,” Eskelsen said. “We are strict with our budgets and continue our work to steadily improve our system to enhance reliability for our 89,163 customers in southeastern Idaho. We know how important reliable service is for businesses and homes alike.”
The historically low coal amount along with high natural gas prices prompted other utilities, including Rocky Mountain Power, to increase costs. This is in hopes that they can replace depleted coal inventories according to the statement.
“The company is working hard to maintain our position as a low-cost energy provider,” Eskelsen said. “The annual adjustment process makes sure Rocky Mountain Power customers always pay a fair price for the energy they need.”
The war in Ukraine only made coal pricing worse, as many U.S. mines, including those in Utah and Colorado, exported coal to Europe.
“Due to overall lower coal resource output, the company had to adjust its overall system operations through increased natural gas power plant output, reduced market sales and increased market purchases,” said Jack Painter, net power cost specialist for the utility. “In 2023, all of PacifiCorp’s Utah coal suppliers and one major Wyoming coal supplier made emergency contract declarations that resulted in significant delivery shortfalls of PacifiCorp’s contracted coal supply. Consequently, the Utah coal mines experienced a 35% decrease in coal production.”
A coal mine fire at American Consolidated Natural Resources’ Lila Canyon mine in central Utah also occurred, causing more challenges. Having produced 25% of Utah’s coal mining production in past years, it was announced that the mine would be closed permanently in November 2023 after over a year of halted production.
Still pending commission approval, here are the estimates for the impact on each rate schedule:
Residential Schedule 1 — 7.6% increase.
Residential Schedule 36 — 8.7% increase.
General Service Schedule 6 — 10.7% increase.
General Service Schedule 9 — 13.1% increase.
Irrigation Service Schedule 10 — 9.5% increase.
General Service Schedule 23 — 9.0% increase.
General Service Schedule 35 — 10.3% increase.
Public Street Lighting — 5.2% increase.
Tariff Contract 400 — 13.5% increase.
The public will be able to comment on this proposal as the commission studies the company’s request, according to the statement. For a copy of the company’s application or for more information go to https://puc.idaho.gov/.
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