Rocky Mountain Power Says 8.8% Rate Hike Request Not Because Of Data Centers

Rocky Mountain Power is asking Wyoming regulators for an 8.8% general rate increase to take effect next year, the company announced Wednesday. The request comes alongside a separate filing to decrease customers’ bills by an average 6% beginning July 1 due to lower energy costs. Together, the two filings would result in an overall net customer bill increase of approximately 2.8% for Wyoming customers. For residential customers, the net increase would be 3.9% implemented over time.

The company said this and previous rate increase requests have nothing to do with data centers. While ratepayers in some states like Virginia are seeing increases because of large-scale projects, Wyoming consumers are protected by a large load tariff that requires developers to cover 100% of infrastructure costs. “None of the increases that have happened in past years, nor this one, have anything to do with data centers,” spokesman David Eskelsen told Cowboy State Daily. “We’re working really hard to make sure the energy needs of that particular sector does not adversely affect our existing customers.”

If the rate increase takes effect next year, it would be at least the third request in three years for more money. A 2023 request for a 29.2% increase was denied by the Wyoming Public Service Commission and eventually settled at 16.2% overall. Last year, the company was approved for a 10.2% hike, reduced from an initial 14.7% proposal.

Beginning July 1, customers will see an average 6% decrease in monthly bills due to declining fuel and purchased power costs in 2025. That translates to an approximate $4.50 decrease on a monthly bill for a customer using 700 kilowatt hours per month. “We pass savings back to customers when costs decline, manage expenses carefully, and focus every day on delivering dependable power at some of the lowest rates in the country,” said RMP President Dick Garlish.

The general rate request, filed Tuesday, calls for a total increase of $70.5 million to maintain and upgrade RMP’s electrical system, including replacing electrical poles and wires in Wyoming. The request will be reviewed by the Wyoming Public Service Commission and other parties during a 10-month public process. Next year’s proposed rate increase will be offset by RMP’s recent sale of its Washington state assets, which comprised about 8% of the company. That sale cut RMP’s rate request increase by $7.8 million. RMP decided to cease operations in Washington because of sticky regulatory requirements that were causing higher rates across their overall service area.

In April, Rocky Mountain Power announced it is scaling back renewable energy plans in Wyoming after President Donald Trump removed the renewable energy tax credit as part of the Inflation Reduction Act last year. According to its latest integrated resource plan, RMP plans no new wind or solar projects in Wyoming, Utah, or Idaho from 2027 through 2045. However, regulated utilities are required to file a new resource plan every two years, and the plans are frequently updated. “Rising costs across the electric utility industry affect every energy provider,” Garlish said. Both filings will be reviewed by the Wyoming Public Service Commission to ensure rates remain fair, reasonable, and in the best interest of customers.