The governor of Utah has announced that he will prevent Rocky Mountain Power's planned sharp increase in electricity prices. The increase would bring Utah's rock-bottom prices much closer to those in the rest of the country.

On June 28, Rocky Mountain Power officially submitted a proposal to increase its electricity rates for Utah residents.

For many homeowners, the tariff per kilowatt hour would increase by about 30%.

That would cost the average Utah resident $24 more per month and nearly $290 more per year.

This is happening even though Utah residents currently pay the lowest electricity bills in the U.S., according to Wallethub.

According to a survey conducted by the website, people in Utah spend an average of $96 per month on electricity. Utah is the only state in the U.S. where the average resident spends less than $100 per month.

In Hawaii, for example, the average salary is more than $200 a month.

The proposed increase would be implemented in two steps: first an increase of approximately 15% effective February 2025 and then a further increase of 15% in January 2026.

Rocky Mountain Power said the proposed rate increase was due to rising fuel prices, major investments in infrastructure and rising insurance premiums due to the increased risk of wildfires.

“We take our commitment to deliver safe, reliable and affordable energy seriously. We work hard to provide reliable service, make critical investments in much-needed new energy infrastructure and keep prices affordable for our customers,” said Dick Garlish, president of Rocky Mountain Power. “This work is reflected in high-quality service at prices below the national average. Like many companies in these difficult economic conditions, the utility is facing inflationary pressures and rising costs that are beyond its control and that cannot be offset by hard work and business discipline alone, making it necessary to seek a rate increase now.”

Governor Spencer Cox made the following statement on the proposed increase:

Rocky Mountain Power's proposed rate increase would be laughable if it weren't so dangerous. The proposal is completely unacceptable. The audacity and lack of thoughtfulness in this request brings serious questions to RMP's management. I will do everything in my power to ensure that a rate increase of this magnitude never sees the light of day.

According to the Bureau of Labor Statistics, even after the proposed increase, rates for those affected would still be about 18 percent below the U.S. average.

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