Rocky Mountain Power’s 32% Rate Hike – What You Need to Know
I've been saying it would happen for months, and it's finally here. Rocky Mountain Power just announced a price hike, and it's a DOOZY! We're talking about a potential 32.25% increase.
Rocky Mountain requested a 30% increase, with 15% in the first year and 15% in the next year. But do the math. A 15% increase on a $100 bill is $115. Then a 15% increase on a $115 bill is $132.25 (a 32.25% total increase). A utility in Southern Colorado just announced a 17% increase. My utility had a 92% increase in one month last year.
So, what's going on? Why are so many utilities having to increase their prices? And is it likely to stop? Spoiler Alert...unfortunately, no.
Understanding the Price Increase
Rocky Mountain Power says the rate hike is due to a few key factors:
Supply Challenges: The U.S. is facing a big supply-demand imbalance in energy. There just isn't enough juice to supply the demand. The supply is low because of initiatives to clean up energy by shutting down coal-fired power plants. While this does clean up the air, the plants are being replaced by expensive, low-power-output plants (like wind). As demand goes up and supply stays tight, prices rise. Unfortunately, it's that simple.
Demand Challenges: Despite high interest rates, new home construction is still booming across the West. Combine this with electric vehicle trends (which each take a massive amount of power to charge) and emerging Artificial Intelligence, and the math shows that we need way more power than we produce. Like over 50% more! In fact, a recent article quoted Elon Musk saying that we need to increase power capacity in the US by 50% just to cover AI.
Increased Insurance Costs: Utilities across the western U.S., including Rocky Mountain Power, are seeing huge insurance rate hikes. Why? Wildfire lawsuits. Power lines cause wildfires, lawsuits follow, and insurance premiums skyrocket. One premium went from $10M a year to over $125M. These costs get passed on to us, the consumers, in the form of rate hikes. Sadly, 2024 is turning out to be a bad wildfire year in western states like California, Colorado, Utah, Oregon, and Idaho.
Broader Impact on Western Utilities
Rocky Mountain Power isn’t alone. Other utilities in the western U.S. are facing the same issues and raising their rates, too. It’s a systemic problem affecting all of us as the grid's infrastructure continues to age and fail. Some utilities would like to upgrade part of the grid, but the costs to do this are staggering. Unless the government gets involved, there really isn't a way for a utility to cover the cost other than jacking up the electricity rate.
Solar is a Great Solution
But there is some good news, I'd even say great news. You can protect yourself from these rate hikes by going solar. Instead of buying energy from your utility every month, you can own a system that produces all you need from the light the sun is already giving your home. Best of all, when you own your own solar system, you don't give yourself rate hikes. Your system creates energy day in and day out, regardless of who is president or what policies are being invoked or revoked.
Benefits of Solar Energy
Cost Savings: Slash your monthly electricity bills. With rates going up, solar savings are bigger than ever.
Clean, Renewable Energy: Solar is green and helps reduce your carbon footprint.
Consistent Power Supply: Own your system, get reliable power, and say goodbye to rate hikes.
Government Incentives: Tax credits and incentives make switching to solar even more affordable.
No-Money Down Options: Many solar providers offer financing with no money down, making it easier to switch.
Now is the Best Time to Go Solar
With advanced, highly efficient solar panels, 25-year warranties, and current incentives, now's the perfect time to get off the utility rollercoaster and switch. Protect yourself from future rate hikes and enjoy clean, affordable energy.
Curious about how much you could save? Click here to get a FREE custom quote.
Stay tuned for more updates and energy-saving tips from Ask Solar Mike!
