The Utah Public Service Commission won’t reconsider its decision on Rocky Mountain Power’s rate increase request, with commissioners saying they were offended by how the state’s largest utility worded its review request.
Arguing that Utah ratepayers shouldn’t bear other states’ costs, the commission ordered a 4.7% electricity residential rate increase in April, only about a quarter of the 18.1% Rocky Mountain Power requested last August, and even less than the initial 30% proposal that upset Utah elected officials.
The company requested reconsideration of that decision in May, calling it “shortsighted” and arguing the commission’s order “improperly denies the Company recovery of prudently incurred expenses” and reached conclusions that were unsupported or contradicted by evidence, compromising the utility’s financial stability and its ability to invest in the state.
Describing the tone of Rocky Mountain Power’s request as “hyperbolic, intemperate, and occasionally disrespectful,” the commission rejected the utility’s argument that the April order didn’t cite evidence for many of its conclusions.
In the order issued on Thursday, commissioners also claimed that by using that language, the company “impugns the integrity” of the Public Service Commission, insinuating that the order seemed to be outcome-motivated “‘under the guise’ of controlling costs.”
“This offensive characterization is untrue, unhelpful in what has been a careful deliberative process, and the PSC is disappointed that RMP would stoop to what can be construed as an attack on the impartiality and integrity of the PSC,” the commission wrote.
After the denial, which was partially posted on June 26, the utility filed an appeal petition to the Utah Supreme Court, said David Eskelsen, Rocky Mountain Power spokesperson.
“We intend to avail ourselves of the full appeal process,” Eskelsen said. “We believe that our original request as it was revised in August last year, was prudent and reasonable.”
However, the commissioners believe the tone of the company’s request may be frowned upon by the courts.
Additionally, they say some of the decisions Rocky Mountain Power is contesting, like the commission’s rejection of the company’s wildfire mitigation plan, could have been reviewed in other ways if Rocky Mountain Power had provided meaningful evidence about the cost-effectiveness of the plan.
The state and its regulatory agencies have shared a history of collaboration with Rocky Mountain Power, but that doesn’t “require Utahns to tolerate unfairness,” the commission said. “Utah customers are not RMP’s guarantor of last resort for skyrocketing and imprudent costs that RMP incurs to protect its shareholders from policies and events arising in other states.”
Read the full report at UtahNewsDispatch.com.
