Momentum behind the push to split up one of the largest utility companies in the country continues to build as Wyoming, Idaho and Utah rally around the idea of forming what they call an “interstate compact for regional energy collaboration” and breaking PacifiCorp into two separate electricity providers.
PacifiCorp is already divided into its subsidiaries — Rocky Mountain Power and Pacific Power. The company reports it has about 2 million customers, with about 1.2 million of those in Rocky Mountain Power’s red states, and another 800,000 in the West Coast states.
Rob Creager, executive director of the Wyoming Energy Authority, told Cowboy State Daily that leaders in politically red Wyoming, Idaho and Utah are talking about formally extending that divide to maximize shared interests between these states.
“I think the goal is to essentially to say, ‘Hey, you know, these power issues and these energy issues are so much bigger than one state that it's really got to be a regional approach to figure it out,’” said Creager, who envisions a future where Wyoming could directly provide more electricity to Idaho and Utah.
“We’ve got plenty of energy and they need it,” said Creager. “So, let's send them some Wyoming energy.”
Last month, the Utah Legislature passed a resolution formally calling for “coordinated strategies to address environmental and regulatory challenges” when it comes to power generation.
During a March 21 press conference, Utah Gov. Spencer Cox called out West Coast states for driving up electricity bills.
“Sadly, we know that Utahns are paying more for their power because of decisions that have been made in coastal states, in places like Oregon and Washington,” said Gov. Cox, offering a point of view shared by Wyoming leaders and framing the debate over PacifiCorp as a red state vs. blue state divide.
Planting Flag
The resolution passed by the Utah Legislature — known as HCR 9 — was a formal way of “sticking a flag in the ground,” said Harry Hansen, deputy director at the Utah Office of Energy Development.
Hansen told Cowboy State Daily the resolution culminated after months of informal talks between leaders in Utah, Idaho and Wyoming.
“Let's actually make this official,” said Hansen. “Let's let's go ahead and put some action behind us and put together a state compact because we do have similar interests and similar constituencies.”
“Oregon, Washington, California obviously they have different priorities than what Utah has,” added Hansen of the social policy divide between the states. “That’s their states’ prerogative and they've aligned pretty well with another on what their values are.”
Unlike Wyoming, Idaho and Utah, the West Coast states enforce renewable energy portfolio standards.
In Oregon, for instance, the portfolio standard “incentivizes the use of new renewable resources like wind and solar over fossil fuel resources like coal and natural gas,” according to the Oregon Department of Energy.
“When you're talking about those other three states, they want to stay away from fossil fuels more often than not,” said Hansen. “But with Utah, Wyoming, Idaho, we share a value to fossil fuels. We’ve got to look out for that. We want to ensure that our energy systems benefit the humans of the state.”
Human Benefit?
Defining what’s beneficial to humans when it comes to energy generation remains a political question.
California policymakers see a human benefit in providing 100% renewable clean energy to its residents by 2045.
Legislative leaders from Utah and Wyoming, who met in California last summer according to state Rep. Jefferson Moss, R-Saratoga Springs, see benefits in decoupling from the clean energy ambitions of West Coast states and charting their own path.
At a conference sponsored by the American Legislative Exchange Council — a nonprofit organization composed of conservative state legislators — Moss said conversations over dinner led to more discussions between Wyoming and Utah leaders.
“Wyoming leadership happened to be at that conference and then that's when we had a good discussion and it was just high-level at the time,” said Moss, who balked at declaring the current debate over power generation as red state-blue state divide.
“If we don't have reliable dispatchable energy, we will be in an energy crisis and so for us yeah there's some politics behind that,” said Moss. “We have to make sure that we're preserving the reliable, affordable dispatchable energy that we currently have and so for us yeah maybe there's some politics there but that's not the primary driver of this.”
Wyoming Perspective
From where the Wyoming Energy Authority stands, the debate about breaking up PacifiCorp into entities that are more responsive to the core customers of Rocky Mountain Power and Pacific Power is mostly about effectively meeting future demands for electricity.
“Understanding the growth of the population and more specifically, what Salt Lake City is kind of expecting over the next decade. They're an importer of electricity. Obviously, we export that,” said the WEA’s Creager.
“You look at the growth of Boise,” added Creager. “Whether Washington state likes it or not, they need their lights to be on there. And their people are going to want that to be as affordable as possible. And that's where you're going to have to look at things like coal and gas. There's really no other option.”
There is nuclear power, and Creager thinks Utah is, “kind of following our footsteps on things like nuclear and advanced nuclear and micro reactors. I know they're looking at that.”
If Wyoming, Utah and Idaho were to join in a formal energy generation and distribution compact, the three states would, “play off each other's strengths,” said Creager.
But is electricity demand in these three states big enough to create an economy of scale that benefits the average ratepayer?
“At the end of the day, everybody wants affordable and reliable power. So, I think that's what we're all in agreement.”
“I think if you were to ask me that pre data center and AI booms, I would say maybe not big enough,” said Creager, referring to the huge energy demands AI and data centers are placing on the nation’s electric grid. “Today, I would say absolutely big enough. When you look at just AI and data centers alone and looking at Utah, looking at Idaho and looking at Wyoming, there are massive loads that those data centers are going to require.”
When data centers go looking for energy friendly places to locate, said Creager, “Obviously, the three states would love to have those sited in their respective states.”
PacifiCorp’s Take
Wyoming represents about 15% of PacifiCorp's electricity sales to retail customers, with 8,579 GWh provided in 2023.
That’s according to a report the Utah Legislature asked PacifiCorp to produce in 2024. Utah is home to PacifiCorp’s largest customer base at 46%.
PacifiCorp spokesperson Jonathan Whitesides emphasized how the utility reaches across six states and strives to benefit all its customers.
“I think that's actually why we've had such low customer rates historically is because we do have a diversified portfolio,” Whitesides told Cowboy State Daily. “You're pulling all of that hydro off of the Pacific Northwest, like the Columbia River.”
“Then when the sun is shining, the wind is blowing and we're getting lots of fairly low-cost renewables,” added Whitesides. “But then when the sun's not shining, the wind's not blowing or we're not getting very much through hydro, then that's when we kick on and ramp up our thermal generation.”
Whitesides said PacifiCorp has not taken a formal stand on Utah’s resolution and call for creating a new energy compact with Wyoming and Idaho.
“We recognize that in recent years, energy policies have diverged in the six states PacifiCorp serves,” added Whitesides. “While PacifiCorp was not involved in HCR 9 in Utah, I would just add that the company remains committed to working constructively with each state to implement energy policy decisions.”
Whitesides also said this idea has surfaced before.
“The last time something similar happened was back in 2016 and ultimately it was not pursued because of the significant cost and the financing challenges,” said Whitesides.
Contact David Madison at david@cowboystatedaily.com
David Madison can be reached at david@cowboystatedaily.com.
