Why have Utah Powers electric rates increased?
Most Utah Power customers saw about a 10% rate increase effective April 1, 2004. Customers with higher usage may see larger percent increases. The increase was needed to cover the utilitys increased cost of serving Utah customers. New electric generation, transmission and distribution plant investment was needed to meet PacifiCorps growing electrical load and to meet reliability requirements. Utah customers are constructing larger homes and are replacing energy efficient evaporative coolers with central air-conditioning units that use more electricity. The companys employee expenses have also increased. Three percent of the increase was to fund Utah Powers demand-side management programs. These programs fund cost-effective investments to reduce peak loads that drive the need for more power. Even with this rate increase, the bill for the average Utah Power residential customer using about 700 kwh per month is lower than it was on April 1, 1988 (16 years ago).
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