Draper-area Rocky Mountain Power customers could see a 4.2% rate increase on their electric bills under a proposed settlement now before Utah's Public Service Commission. But because a 10.5% rate reduction already took effect, most households will actually pay less than they did earlier this year.
"An average residential customer will have rates go up by 4.2%. But the truth is, you might not notice that because we just barely got a reduction in rates of 10.5%," Michele Beck, director of the Utah Office of Consumer Services, told Fox 13 News on Friday, July 18.
The net effect: a 6.4% decrease for the average residential customer, according to Rocky Mountain Power. The 4.2% general rate increase amounts to $93 million across RMP's customer base.
What the settlement includes
The PSC held a sworn-testimony hearing Friday, July 18, to weigh the deal, which Rocky Mountain Power filed with the commission on Tuesday, June 30. The settlement was expected to take effect July 1, pending PSC approval.
Under the agreement, RMP commits to freeze any further rate hikes through December 31, 2028, and invest what executives described at the hearing as $2.2 billion in Utah energy infrastructure over that period. The settlement also ends pending litigation, including RMP's appeal to the Utah Supreme Court, and includes an earnings test to prevent the company from over-earning.
The deal resolves a years-long fight. Rocky Mountain Power originally proposed a 30% rate increase in 2024, then dropped it to 18% after public pushback. The Public Service Commission rejected the hike outright, and RMP appealed to the state Supreme Court before filing this settlement.
Who testified
Joelle Steward, RMP's senior vice president of regulation, told the commission the settlement "provides a balanced resolution of contested issues" and reflects compromise among all parties. Joshua Jones, RMP's vice president of business operations, said the investments would be "secured and made here between now and December 31, 2028."
When commissioners pressed RMP executives on whether the infrastructure spending was already planned or tied specifically to the settlement, company officials said there would be spending tied directly to the agreement.
Dr. Logan Mitchell, a climate scientist with the nonprofit Utah Clean Energy, asked the commission to require RMP to engage with stakeholders before year-end and share details on how the infrastructure money will be spent.
Gov. Spencer Cox endorsed the settlement in a post on X on Friday, July 18, saying it ensures Utah's energy rates remain among the lowest in the nation. Senate President J. Stuart Adams, R-Layton, issued a statement the same day calling the agreement a way to "protect Utah consumers while ensuring the dependable energy service our growing state relies on."
What happens next
PSC Chair Jerry Fenn did not set a decision date. He said only that the commission would rule "as soon as possible." No public comment deadline for this specific proceeding was identified in available records. Draper-area residents served by Rocky Mountain Power can track the case through the Utah Public Service Commission at psc.utah.gov.
