Wyoming Approves $85.5 Million Rate Increase for Rocky Mountain Power

Wyoming electricity customers will see higher monthly bills starting in June following a decision by the Wyoming Public Service Commission to approve an $85.5 million rate increase for Rocky Mountain Power, WyoFile reports.

The three-member commission unanimously accepted a settlement agreement between the utility, the Wyoming Office of Consumer Advocate, and a group representing the state’s largest industrial energy consumers. The approved hike is a reduction from the company’s original $123.5 million request, lowering the average rate increase from 14.7% to about 10.2%.

For most residential customers, this translates to an estimated $14 increase in their monthly electric bills. While minor adjustments may still occur when the commission issues its final order in the coming weeks, the decision marks the latest in a series of rate increases tied to market volatility, renewable energy investments, and wildfire-related insurance costs.

Rocky Mountain Power, a subsidiary of PacifiCorp operating across six states, cited a combination of factors contributing to the increase. These include volatile fossil fuel prices, rising insurance premiums tied to wildfire liability, and compliance with federal and regional energy policies—particularly those focused on transitioning to cleaner energy sources.

“Affordability is a challenge — and it’s a challenge across the electric utility sector,” said Commissioner Mary Throne during Tuesday’s meeting.

She added that broader discussions with stakeholders on long-term affordability are needed.

Deputy Chairman Chris Petrie acknowledged concerns about the pressure of ongoing rate increases but emphasized that the utility is attempting to navigate multiple external demands while maintaining reliable service.

“We certainly have to acknowledge that there have been significant rate increases that are welcomed by nobody,” Petrie said.

In addition to the upcoming rate change, customers also experienced a 5.5% increase in January 2024 and two fuel cost adjustment surcharges over the past two years.

Despite the settlement, commissioners indicated that further rate adjustments could be requested in the near future. Before any future proposal, Rocky Mountain Power was encouraged to follow through on its commitment to “workshop” unresolved issues with consumer and industry stakeholders. These discussions would address topics such as wildfire liability costs and how to fairly allocate multi-state infrastructure expenses.

Part of the broader conversation includes PacifiCorp’s potential move away from its long-used “multi-state protocol” method of sharing systemwide costs among its six states. The utility has also floated the idea of a corporate realignment, which could result in changes to how operations are structured in response to differing state-level energy policies.

The commission noted that while the current settlement brings temporary clarity, the utility and regulators must continue to collaborate to address long-term energy planning and cost concerns in Wyoming.