Utah legislators are clashing with Rocky Mountain Power, the state’s largest utility provider, over its rate increases and energy strategy. The tension began this summer when the company proposed a rate hike exceeding 30%, later reduced to 18.1%. Lawmakers responded by requesting a plan for the utility to separate from its Oregon-based parent company, PacifiCorp.
Rocky Mountain Power, a subsidiary of PacifiCorp, serves over 1 million customers in Utah, covering approximately 75% of the state. Its parent company operates in six states, including California, Oregon, and Washington, where energy policies emphasize renewable sources, contrasting with Utah’s coal- and natural gas-friendly stance. Legislators argue these differences lead to volatile rates and reliability concerns.
During a Nov. 20 legislative session, Rocky Mountain Power President Dick Garlish presented a 22-page report outlining potential hurdles for a “corporate realignment,” noting that separation would be complex and costly, with estimates reaching up to $4 billion. He emphasized that such a move requires consensus among PacifiCorp’s six-state partnership and approval from Berkshire Hathaway Energy, PacifiCorp’s owner.
Some lawmakers, including Rep. Carl Albrecht, criticized Rocky Mountain Power’s commitment to renewable energy and the closure of coal plants, accusing the company of abandoning Utah’s coal industry. Albrecht described the situation as feeling “stabbed in the back.”
Despite these frustrations, others, like Republican Sen. Scott Sandall, stressed the need for collaboration across states and political leaders before moving forward with a split. Democrats on the committee cautioned against unintended consequences, highlighting the potential for increased costs to Utah ratepayers if the state pursued separation.
Garlish acknowledged the challenges and expressed a willingness to engage in future discussions, stating that continued collaboration is essential to addressing frustrations on all sides.