Utah Office of Consumer Services v. Public Service Commission of UtahAnnotate this Case
The Supreme Court set aside orders from the Public Service Commission in two related cases, holding that the Commission did not have the authority to impose "interim" rates as an element of the energy balancing account procedures described in Utah Code 54-7-13.5.
The Commission issued an order eliminating an "energy balancing account" (EBA) rate processes to PacifiCorp, an electric power provider, and later issued an order adopting the recommendation of the Division of Public Utilities that interim rates be reinstated in the EBA mechanism. After PacifiCorp submitted its 2018 EBA filing that proposed to recover EBA costs in the amount of $28 million on an interim basis the Commission issued an order imposing interim rates. Certain consumer groups challenged the Commission's interim rate orders. The Supreme Court set aside the orders, holding that the interim rates were imposed without a requirement that PacifiCorp prove by substantial evidence that the costs incorporated in the rates were prudently incurred or just and reasonable, which violates the controlling standard set forth in section 54-7-13.5(2)(e)(ii).