As if you weren’t already feeling the pinch of inflation, Rocky Mountain Power’s proposed rate increase is just salt in the wound.
Rocky Mountain Power recently proposed a 30% rate increase on electricity, which has now been reduced to 18.1%. This lower number sounds a little more palatable compared to the original request; however, what many people haven’t yet noticed is that Rocky Mountain Power quietly started charging an extra 11.8% on the Energy Balancing Account on recent power bills. It looks like this change took effect on July 1.
According to Rocky Mountain, “The EBA is a price adjustment (either credit or debit) that accounts for differences between actual power costs and the level of power costs that were set in customer rates. Power costs are the variable costs of providing customers with energy, including such things as fuel and the cost to purchase power from other producers.”
In other words, Rocky Mountain Power is saying that its costs have gone up and as a public service provider they aren’t expected to lose money. Most of the electricity in Utah comes from coal and natural gas, and the cost of those commodities has gone up dramatically in the past few years.
The average Utah homeowner pays $156 per month for electricity, according to energysage. The proposed 18.1% increase — along with the 11.8% Energy Balancing Adjustment that already took effect — means the average residential customer will be paying about an additional $550 per year for electricity.
And while that is quite troubling, it is part of a larger problem. Not only are Utahns dealing with the effects of inflation, but they’re also paying nearly double what they were 20 years ago for power. The Utah Public Service Commission reported that the average residential power bill for a customer using 700 kilowatts monthly was just over $604 per year in 2004. Now in 2024, that cost is nearly $1,100.
Additionally, power outages are more frequent than ever. Just a few weeks ago in August KSL.com reported an outage left 21,000 Rocky Mountain Power customers without power. In June, there were more than 60 power outages across the state in a single weekend, affecting nearly 20,000 customers.
Between the inevitable price hikes and frequent power outages, it’s understandable if Utahns have grown anxious about leaving their literal power in the hands of a single company. Thankfully, solar programs and installations are available. Through their program you can go solar for zero down and save a significant amount of money on electricity.
Here are just a few reasons why you’ll want to consider installing solar sooner rather than later.
Solar provides a method to lock in your electricity price
“Somebody who’s paying $150 a month for electricity right now 30 years from now would be paying $538 a month. That’s just using the historical average price increases that are expected to continue. So instead of spending $54,000 with the power company, you would actually spend $109,000 with the power company,” he said.
Instead, consider going solar to help lock in the price of your power. Going solar means your monthly solar payments are set at a fixed rate, and won’t go up — ever. According to Stucki, your payments will likely be similar to or even lower than your current utility bill. As electricity rates increase in the future, your savings will grow exponentially since your payments will remain constant.
Having an emergency backup battery means you always have power
Another reason you’ll want to consider solar is not having to deal with outages. Most solar solutions stop working when a power outage occurs.
As Utah’s electric grids experience growing instability and prolonged outages becoming more frequent and widespread, having a backup power source provides significant benefits — and peace of mind, especially during emergencies. Should disaster strike, you can keep the lights on, the heat going and preserve the Costco rotisserie chickens in your refrigerator.
You will save money on electricity
Saving money is a top priority for a lot of folks these days, and one of the most obvious ways to do that is to lock in a fixed rate for your power.
Get the Lowest Prices on Solar from Green Power Utah
Stop allowing the power company to charge whatever they want, take control of your home and what you can produce yourself with your own solar panels on your home. Between the tax incentives, the savings by having solar on your home, it’s an easy decision to make. There is no upfront cost, we replace your power bill with a lower fixed payment towards an asset that adds equity to your home. Get your free estimate today and see exactly how much you will save.