Rocky Mountain Power Plans For Growth

Rocky Mountain Power customers can expect to see an annual increase in prices over the next decade as the company seeks to build up its infrastructure.

That’s what Rocky Mountain Power president Richard Walje told community leaders at the company’s annual community meeting in Idaho Falls Wednesday.

This year residential rates will increase 7.8 percent and then another 7.2 percent in 2013. Walje says they will ask for more rate increases in the years to follow.

Growth rates in Idaho may be flat, but Walje says that will not last forever and that’s why the company must invest in capital projects for the future.

“All of the decisions we make that affect our prices in Idaho are made in our view as a benefit to customers in Idaho as a whole and not for other reasons,” Walje said.

For the past 100 years the power company has been in business, coal powered plants have been the primary producer of electricity, but with increased EPA regulations the cost is rising.

“They have been very good for our customers, very cost efficient but we are having to make significant investments in those power plants to keep running them with more stringent rules in place,” Walje said.

Last year 63 percent of Rocky Mountain Power’s electricity was generated by coal plants.

By 2020 coal will only make up 57 percent of electricity as the company moves toward expanding natural gas and wind energy.

“Much of the price increases is a result of the increase in electricity costs and some capital investment we are having to make to stay in compliance with not only environmental requirements but reliability requirements for transmission system,? Walje said. ?Those things we are obligated to do and unfortunately the cost is passed on to our customers.”

In recent years wind generated power has increased as another, cheaper power producer.

“There are places in the west and the Columbia River Gorge where the wind blows more in other places so it’s less expensive to build wind projects in those areas,” Walje said.

Bonneville County Commissioner Lee Staker says while he doesn’t like the increased costs, he says he appreciates the power company’s forward thinking.

“In all reality it is a good buy,? Staker said. ?I’m not happy with it but it’s better than living in new york Los Angeles or San Francisco.”

Although consumers cannot control the rates, Walje says everyone can turn off the lights.

“By paying attention to electricity conservation, energy efficiency and other thing, they [consumers] can be sure to only be paying for electricity that they absolutely need,” Walje said.

Since 2006 Walje says the company has saved more than $100 million in administration costs.

Any other rate increases must be approved by the Idaho Public Utilities Commission.

In 2010 Idaho had the cheapest residential electricity rates in the country, Hawaii had the most expensive.

Rocky Mountain Power plans to invest about $17 billion in capital projects over the next decade.