An application by Rocky Mountain Power to pass federal tax savings along to its customers in the form of an electricity rate decrease has been approved by the Utah Public Service Commission. The decision means that ratepayers will see an ongoing annual $61 million credit. The rate reduction application reflects a decrease in Rocky Mountain Power’s federal tax liability as a result of federal tax legislation passed by Congress in December. According to the Division of Public Utilities, Rocky Mountain Power (RMP) customers will save 3.45 percent or $32 per year on the average utility bill.
“The Public Service Commission ordered Rocky Mountain Power to start passing on savings to consumers beginning May 1,” said Chris Parker, division director. “Future filings next month are projected to pass on additional annual savings to Utah consumers so this is good news for our state.”
The credit will remain in place until it is included in RMP’s next general rate filing. For the remainder of 2018, the credit will be slightly higher to reflect RMP’s tax savings between Jan. 1 and April 30. RMP will then file an update with the Public Service Commission in June that could result in additional savings for Utah customers. The Division of Public Utilities will continue to advocate that rates reflect the costs of service, allowing customers to receive the benefit of tax changes as soon as RMP does, the division said.