Rocky Mountain Power is asking the Utah Public Service Commission for a $14.6 million rate decrease.
The decrease equates to annual electricity savings of $6.96 for the average customer, using 698 kilowatt-hours a month.
The utility’s Energy Balancing Account (EBA), which primarily consists of the difference between Rocky Mountain Power’s actual and projected fuel costs and electricity purchases, was $6.5 million, or 0.3 percent less than last year. The company also found customers should receive a reduction of about $8.1 million, or a 0.4 percent difference between actual and projected Renewable Energy Credit (REC) revenues.
The commission approves customer prices based on the balance in the EBA caused by the difference between actual and expected costs of fuel and electricity purchases. This year also included costs for closing the Deer Creek Mine. Rates are subsequently adjusted after it is determined whether the actual costs go up or down.
In a similar way, rates are adjusted for the sales of RECs in the REC Balancing Account. The RECs represent the environmental attributes of renewable energy produced by the company. RECs are sold on the open market and revenues are credited to customers to lower their bills.
Last year the company’s filings resulted in a $16.9 million decrease in customer electricity bills.
“Our goal is to provide reliable electricity at the lowest prices possible,” said Joelle Steward, director of rates and regulatory affairs manager for Rocky Mountain Power. “This adjustment is one of the ways we make sure our customers are not overcharged.”
The utility’s application with the commission seeks to have the rate changes for the REC sales begin June 1 and the changes for the energy costs May 1. The company also said it expects to seek another rate decrease for customers later in the year, when the balance from the last EBA has been fully recovered.
Last year, the Legislature passed the Sustainability Transportation and Energy Plan (STEP) Act, which allows the utility to recover all of the fuel and purchase power costs needed to provide electricity to customers, beginning last June 1. As a result of the law, customers are receiving an additional $1 million in lower costs through this filing.
Customers would have saved another $700,000 had the STEP law been in effect for the entire year. Subject to approval of the commission, STEP also provides funding for a renewable energy tariff, electric vehicle charging stations, large-scale battery storage, solar development and other air quality initiatives with a minimal impact to customers.
Rocky Mountain Power serves more than a million customers in Utah, Wyoming and Idaho. The utility is part of PacifiCorp, which has nearly 1.8 customers in six western states.