Rocky Mtn Power requests WY rate increase
Growing Wyoming customer demand for electricity drives request for rate increase, says company
by Rocky Mountain Power news release
June 29, 2007
(Cheyenne) - Rocky Mountain Power filed an application with the Wyoming Public Service Commission June 29, seeking an increase of $36.1 million in customer rates annually, or an overall increase of 8.4 percent. The request is necessary to recover the costs of providing a safe, reliable and adequate supply of electricity to the company’s nearly 130,000 Wyoming customers.
The requested rate increase will allow for continued investment in electrical facilities needed to meet existing and growing customer demand for electricity in Wyoming and will provide a reasonable opportunity for the company to earn a fair return on its investments made on behalf of Wyoming customers.
“This request seeks to more closely match the cost of serving the electricity needs of our Wyoming customers with the rates we are able to charge,” said Richard Walje, Rocky Mountain Power president. “Even with the increase we are proposing, Rocky Mountain Power’s Wyoming customers will continue to pay among the lowest prices for electricity in the nation.”
Walje said increasing demand for electricity from both new and existing Wyoming customers requires the company to build new assets including power plants, transmission and distribution lines, and substations. The expense of building, operating and maintaining these facilities and other growth-related expenses, together with rising fuel and purchased power costs, make this request for additional Wyoming revenues necessary.
The company is not requesting an increase to its existing authorized return on equity of 10.75 percent.
“We are focused on obtaining the greatest value to customers for every dollar invested in the maintenance and expansion of our electrical system,” said Walje. “A reliable and adequate supply of electricity is essential to the long-term economic vitality in the states and communities we serve. This requires continued investment to meet existing and growing demand for electricity in Wyoming.”
The Wyoming Public Service Commission must first approve any rate changes before they can go into effect. The Public Service Commission will conduct an open and thorough review of the company’s application, which can take up to 10 months to complete from the time the application was filed.
About Rocky Mountain Power
Based in Salt Lake City, Rocky Mountain Power is one of the lowest-cost electricity producers in the United States and provides safe and reliable electric service to more than 957,000 customers in Utah, Wyoming and Idaho. The company and its employees are committed to the communities they serve, helping to build a secure energy future for customers and providing valuable contributions in economic and community development, as well as social needs. More information is available online at www.rockymountainpower.net.