Rocky Mountain Power has announced an ambitious new energy plan intended to help reduce emissions, keep coal competitive and strengthen the Utah economy. The Utah Sustainable Transportation and Energy Plan (STEP) includes incentives to reduce the use of fossil-fuel power plants in the Wasatch Front, create the state’s first zero emissions community and put thousands of electric vehicles on Utah roads.
“The electric industry is changing at a rapid pace and Rocky Mountain Power wants to lead with significant changes that will improve our air and add to Utah’s robust economy,” said Cindy A. Crane, Rocky Mountain Power president and CEO. “With the help of many partners we can bring all of these benefits with minimal additional costs to our customers.”
Rocky Mountain Power has been seeking input from the Governor’s Office, legislators, regulators, business leaders and other key stakeholders as it prepares a legislative proposal to make STEP a reality. STEP has been divided into three areas: clean air and energy, economic development and sustainable energy policy. Here are some of the key features of the plan:
Clean Air and Energy
· Air Quality: Establish a voluntary approach to eliminate or reduce emissions from customer-owned or utility-owned power plants along the Wasatch Front.
Electric Vehicles: Provide incentives for electric vehicles and infrastructure. More electric vehicles will reduce emissions and improve Utah’s air.
Innovative Technology and Efficiency: Increase funding on energy efficiency programs, support solar development as part of a net zero community project in coordination with the Utah Office of Energy Development, and identify opportunities for use of utility-scale distributed battery storage on a pilot basis
Keep Coal Competitive: Make investments in clean coal research at Utah power plants that may help the plants operate through their useful lives and meet new environmental regulations.
Accelerate Plant Payments: Increase flexibility for environmental compliance by paying down thermal power plant investments while deferring collection of energy efficiency costs.
Economic Development:
Economic Incentives: Develop energy rate incentives with the Governor’s Office of Economic Development to attract new businesses.
Line Extensions: Reduce line extension costs for commercial developers to support economic growth and help create jobs.
Sustainable Energy Policy
· Cost Recovery: Rocky Mountain Power is seeking an energy policy that allows for a consistent recovery of variable costs of energy production in providing electricity to utility customers.
Energy Savings Incentive: Establish incentives for utility investments in energy efficiency measures that deliver energy savings.
Fixed Costs: Evaluate the need for legislative changes so rates reflect the actual fixed costs for providing electricity to customers.
STEP introduces a broad offering of programs over a defined ten-year period to improve air quality, support economic development and promote energy efficiency. These programs will be funded by consolidating the Customer Efficiency Services charge and the Utah Solar Incentive Program surcharges with minimal impacts to customers.
Rocky Mountain Power will continue working with government and business leaders to implement STEP with the anticipation that several elements in the program would begin later next year.