By REBECCA NEYENHUIS
neyenhuis@newsroom.byu.edu
Utah Power filed a request through the Utah Public Service Commission Monday to increase the price of electricity for the first time in 14 years. If approved, the overall increase of 9.9 percent will create a $67 million difference.
Utah's rapid growth is the driving force behind the cost increase said David Eskelsen, spokesman for Utah Power. From 1991 to 1998, Utah Power's service has increased by 26 percent while services by its parent company PacificCorp in other states have only increased 10 percent, Eskelsen said.
Utah Power has to work harder and with greater costs, such as opening new plants, than other PacifiCorp divisions to keep up with the demand, Eskelsen said.
PacifiCorp serves 1.5 million customers in Utah, Idaho, Wyoming, Oregon and Washington. A price increase has been filed in Wyoming and increases are also expected in Oregon and Washington. However, because of a lower income levels in Idaho, PacifiCorp decided against an increase.
According to a Utah Power news release, several factors contributed to the rate increase. One was the closure of a Glenrock Mine in Wyoming affected coal prices and the company anticipates extra cost as it restructures departments and upgrades technology.
Utah Power officials said some of these issues will position them to help Utah customers better.
The price increase for Utah Power's 622,000 customers will vary depending on residential, commercial and industrial rate schedules across the state.
Since 1985, Utah Power has reduced its rates 16 times, for a total reduction of 30 percent. During that span, inflation increased 55 percent.
In a statement issued to the media, Utah Power estimated that if its rates had followed the economy, the typical residential bill would be $84 instead of $40, according to a Utah Power news release.
'Utah Power has been able to absorb much of this inflation through efficiency and cost cutting. It's a difficult decision to make, but we must now ask the PSC to adjust prices to reflect the higher cost of providing electricity,' said Utah Power Vice President Richard Walje.
Walje said Utah Power has keep its request for funds at a minimum. He said the levels are fair to customers while helping Utah Power meet the needs of a growing economy.
Hearings for Utah Power's request are being scheduled with the PSC. It could take eight months for the request to be evaluated and an order to be issued.
While this rate increase will effect the majority of Utah, a few cities, including Provo, have municipal power companies operated through the city.