The Utah Public Service Commission held a hearing on July 17, 2026, to consider a settlement stipulation involving multiple dockets appealed by Rocky Mountain Power to the Utah Supreme Court. The settlement addresses various matters, including a general rate case, deferred accounting for insurance costs, the 2023 Wildland Fire Protection Plan, and the 2024 Energy Balancing Account.
Joelle Steward, senior vice president of regulation for Rocky Mountain Power, testified in support of the stipulation. She stated the agreement provides a balanced resolution and a constructive path forward by resolving litigation uncertainty. According to Steward, the stipulation includes a $93 million annual revenue requirement increase in base rates effective July 1, 2026. This increase consists of $34 million for capital structure equity, $15.4 million for return on equity, $34 million for liability insurance, and $9.6 million for prior-period wildland fire mitigation costs.
Steward noted that while the increase represents a 3.8 percent rise over current base rates, customers may see a net bill reduction of approximately $7 per month when accounting for a 12.5 percent reduction in the 2026 Energy Balancing Account. The stipulation also includes a commitment from Rocky Mountain Power to invest approximately $2.2 billion in Utah infrastructure through December 31, 2028. These investments are intended for asset replacement, system reinforcement, reliability upgrades, new connections, facility development, and main grid improvements.
Ryan Weems, PacifiCorp's senior vice president, chief financial officer, and treasurer, testified that the stipulation strengthens the company's financial position and supports access to capital. Weems explained that PacifiCorp has faced liquidity constraints and financial challenges, including a credit rating of BBB- from S&P, which is one notch above junk status. He stated that the settlement helps the company manage debt maturities and fund necessary capital investments.
Joshua Jones, vice president of asset management and business operations for Rocky Mountain Power, detailed the infrastructure investment program. He explained that the $2.2 billion investment is targeted at enabling growth, improving reliability, and maintaining asset conditions. Jones clarified that these investments are for projects located in Utah and include categories such as asset replacement, system reinforcement, reliability upgrades, new connections, Utah facilities, and main grid improvements.
The settlement includes various customer protections, such as a stay-out period where Rocky Mountain Power agrees not to file a general rate case with an effective date before January 1, 2029. During this time, customers are protected by a revenue-sharing mechanism for earnings above a 9.65 percent threshold. Additionally, the Low-Income Lifeline Credit will increase from $18 to $19 per month.
