Rocky Mountain Power is asking for an 8.8% general rate increase to take effect next year on the back of a separate request to decrease its customers’ bills by an average 6% because of lower energy costs in July.
The company announced the pair of regulatory requests Wednesday, also saying this — and previous — rate increase request have nothing to do with data centers.
"Together, the two filings would result in an overall net customer bill increase of approximately 2.8% for Wyoming customers," according to a statement shared by RMP. "For residential customers, the net increase would be 3.9% implemented over time and subject to careful and transparent review by state regulators."
If the rate increase takes effect next year, it would be at least the third request in three years for more money.
A 2023 request for a 29.2% increase was denied by the Wyoming Public Service Commission and eventually settled in at 16.2% overall. Last year, the company was approved for another rate hike of 10.2%, reduced from an initial proposal to raise rates 14.7%.
David Eskelsen, a spokesman for Rocky Mountain Power, said the most recent requests are complicated “because of the proximity of the two actions.”
The first is an annual energy cost adjustment, which tracks what energy companies pay for fuel and electricity purchased on the wholesale market.
The other is a general rate request, which the company puts out when it believes it needs to reset its base power rates based on its cost to serve its customers.
“They’re different in nature,” Eskelsen said. “Because of their proximity, we want customers to understand the net impact of both of them.”
Annual Energy Cost Adjustment
Beginning July 1, Rock Mountain Power customers will see an average 6% decrease in their monthly electric bills.
Rocky Mountain Power’s fuel and purchased power costs declined in 2025, which reduced the company’s cost of serving Wyoming customers.
“Now we’re returning those lower costs to customers,” Eskelsen said.
That translates to an approximate $4.50 decrease on a monthly bill for a customer using 700 kilowatt hours per month, he said.
Dick Garlish, president of Rocky Mountain Power, said in a statement that, “We pass savings back to customers when costs decline, manage expenses carefully, and focus every day on delivering dependable power at some of the lowest rates in the country.”
General Rate Request
While rates could be lower starting in July, they could increase again in 2027.
RMP filed a general rate request on Tuesday. Rate requests are filed whenever the company anticipates a change to its cost of providing service to its customers.
“Our costs to provide continuing service go up. That’s the driver for a general rate request,” Eskelsen said.
The rate request calls for a total increase of $70.5 million, or 8.8% total cost increase for RMP to maintain and upgrade its electrical system.
The request will be reviewed by the Wyoming Public Service Commission and other parties during a 10-month public process.
“There is a significant amount of capital investment in that $70.5 million,” Eskelsen said, including upgrading and replacing electrical poles and wires in Wyoming’s RMP service area. Operation and maintenance costs are also part of the proposed increase.
Next year's proposed rate increases will be offset by RMP's recent sale of its Washington state assets, which comprised about 8% of the company, said Eskelsen. That sale cut RMP's rate request increase by $7.8 million.
He said RMP decided to cease its operations in Washington because of sticky regulatory requirements that were causing higher rates across their overall service area, including Wyoming.
"The sale of those assets will provide some additional security that the company can use to stabilize itself," Eskelsen said.
Rate Increase Not Connected To Data Centers
Eskelsen said next year’s potential rate increase has nothing to do with the massive data center buildout taking place in Wyoming.
While ratepayers in some states like Virginia are seeing increases in their bills because of large-scale projects, Wyoming consumers are protected by a large load tariff that requires developers to cover 100% of infrastructure costs to prevent rate hikes for residents.
“None of the increases that have happened in past years, nor this one, have anything to do with data centers,” Eskelsen told Cowboy State Daily. “We’re working really hard to make sure the energy needs of that particular sector does not adversely affect our existing customers.”
Closing Door On Renewable Energy?
In April, Rocky Mountain Power announced it's scaling back renewable energy plans in Wyoming after President Donald Trump removed the renewable energy tax credit as part of the Inflation Reduction Act last year.
The decision represented a dramatic shift from a rapid expansion of wind and solar toward a more concentrated focus on fossil fuels. According to its latest integrated resource plan, RMP plans no new wind or solar projects in Wyoming, Utah or Idaho from 2027 through 2045.
However, that plan could change, as regulated utilities are required to file a new resource plan every two years and the plans are frequently updated.
“Rising costs across the electric utility industry affect every energy provider,” Garlish said.
Both filings will be reviewed by the Wyoming Public Service Commission to ensure rates remain fair, reasonable and in the best interest of customers, according to an RMP statement.
Kate Meadows can be reached at kate@cowboystatedaily.com.
