Utility's ultimatum jolts customers: Groups representing big electricity users protest a threat to curtail service

Utility's ultimatum jolts customers: Groups representing big electricity users protest a threat to curtail service

Sep 10 - McClatchy-Tribune Regional News - Steven Oberbeck The Salt Lake Tribune

Rocky Mountain Power's recent threat that it might curtail its service and let power outages linger longer than necessary is not sitting well with the company's biggest customers.

Two groups representing the state's largest power users- the Utah Association of Energy Users and the Utah Industrial Energy Users -- are taking exception to company statements they say appear designed to cause fear and concern among Utahns and to be critical of state utility regulators.

"We believe the recent order by the Public Service Commission granting [Rocky Mountain Power] a $36 million rate increase was fair and doesn't warrant the kind of dramatic statements they issued," said Gary Dodge, a Utah attorney who represents the Utah Association of Energy Users.

The utility, frustrated that the PSC didn't give in to its demands, last week gave Utahns a shocking and unexpected ultimatum: Give us the money we want or we won't give you the electricity you need.

Officials for Rocky Mountain Power went on to contend that the PSC, by allowing it to raise its rates by only 2.6 percent, was signaling that low electricity rates for consumers was more important than reliable service.

Dodge and Robert Reeder, who serves as counsel for the Utah Industrial Energy Users, represent companies such as Intermountain Health Care, Kennecott Utah Copper and Tesoro Refining. They pointed out the PSC's order was the result of an eight-month process that included dozens of expert witness, hundreds of exhibits and lengthy hearings.

They said the PSC consistently allows the power company to recover the costs it incurs, ensuring that its system can provide reliable service to its customers, as well as allowing it to earn a reasonable profit.

The PSC order allowing Rocky Mountain Power to raise its rates by $36 million will allow the company to continue to do so, they said.

In response, Rocky Mountain Power spokesman Dave Eskelsen said "because we have now filed a petition with the commission for reconsideration, it would not be proper for the company to comment on the release."

Reeder said the utility had a chance to make the case for a bigger rate increase. "But their numbers just didn't pass the credibility test with the regulators. They really shouldn't be upset with them [the PSC] because it didn't believe their numbers."

Dodge noted that the utility has asked the PSC to reconsider its decision. "It has every right to do it and it is the proper way for them to go about contesting the commission's order."

The PSC has 30 days to grant Rocky Mountain Power's request for reconsideration. If it doesn't act, the company can appeal the order to the Utah Supreme Court.

steve@sltrib.com