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SALT LAKE CITY (AP) -- Utah Power, which supplies electricity to most Utah residents, is expected to seek a substantial rate increase in March.
It's unclear what the increase would be, but a company spokesman said it could be significant. Any rate change would have to be approved by the state's Public Service Commission.
"There are some substantial rate increases that are going on now," said David Eskelsen, a Utah Power spokesman. "We expect this one in Utah to be substantial as well."
This week, PacifiCorp, which operates Utah Power, asked the Oregon Public Utility Commission for a 13.2 percent rate increase. Several weeks ago, the company also agreed to settle a Wyoming rate case that will see residential customers there paying 9.3 percent more for electricity.
Paul Barber, senior analyst at Salt Lake-based Energy Strategies, which represents some of the state's largest industrial customers, said the increase could be the largest dollar amount the utility has requested. The change would take effect in December.
"Depending on where the pressure is coming to increase rates, the burden could fall more on residential users, commercial users or industrial users," Barber said.
Utah Power has raised its rates four times since 2000, amounting to more than $173.2 million in additional revenues and raising customers' bills on average nearly 19 percent.
Still, Eskelsen said Utah Power's electricity rates are among the lowest in the nation, based on an Edison Electric Institute winter 2005 survey.
"We believe we've done an excellent job of controlling costs in recent years," Eskelsen said. "The fact that electric rates in Utah are trending well behind the general economy is evidence of this."
Leslie Reberg, executive director of the Utah Committee of Consumer Services, said the committee is preparing to review the rate request. The committee serves as the voice for residential and small business utility customers.
Dan Gimble, chief of technical staff for the committee, said PacifiCorp has typically received 25 percent to 50 percent less than what it originally requests.
Also Friday, PacifiCorp announced that all six states in which it operates have approved MidAmerican Energy Holding Co.'s $9.4 billion acquisition of PacifiCorp from Scottish Power.
The purchase already had been approved in California, Utah and Idaho. This week, Oregon and Washington utility regulators signed off on the purchase. Wyoming regulators have given verbal approval and are expected to sign a written order next week.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
