LARAMIE — Dick Garlish, who was named president of Rocky Mountain Power (RMP) nearly two weeks ago, said on the sidelines of a Laramie event Tuesday that his utility’s latest request for rate hikes in Wyoming are being driven by inflation, disruptions in its market caused by a Utah coal mine fire and higher coal transportation costs.

RMP wants a Wyoming regulatory agency to permit the utility to raise electricity rates by a combined $116.3 million, or 16.5%, on all of Wyoming’s 144,511 customers. That decision could come as early as this spring.

That’s in addition to an 8.3% increase that went into effect Jan 1. The company had initially requested more than 21%.

Garlish told Cowboy State Daily at Tuesday’s informational workshop to explain to customers why his utility has requested a double-digit rate hike that inflation is the “biggest factor.”

Inflation had hit as high as 9% in June 2022, before falling to 3.4% for the year period ending in April 2024, the Labor Department announced Wednesday.

Other RMP workshops are planned in Rawlins for Wednesday, Riverton on Thursday, Rock Springs on Friday and Cody on May 28.

In the brief interview with Cowboy State Daily, Garlish likened the rate hike request submitted to the Wyoming Public Service Commission in April to what can happen with a mortgage.

“Simply, one way to think about it is a mortgage, where there is an escrow account to hold taxes and insurance, and it goes up and down based on the value of the land,” Garlish said.

The same metaphorical example has happened with electricity costs, as they fluctuated based on factors such as supply and demand of coal, and taking on more expensive coal supply contracts for some power plants because of unexpected mine closures in Utah last year.

It’s All In The Formula

RMP, which is owned by the Berkshire Hathaway-backed PacifiCorp based in Portland, Oregon, has stated that the requested rate increases are calculated as part of their annual true-up of fuel costs.

These true-ups are based on a complicated formula involving what the company pays for fuel to burn in power plants, and what they are permitted by regulators to charge customers. The fuel prices fluctuate on an annual basis, which is why utility bills can rise or fall.

Besides inflation impacting the cost of doing business, Garlish said that the rate hike is attributed to coal and fuel supply chain disruptions.

Historically low coal inventories prompted many utilities, including RMP, to increase natural gas generation and buy more wholesale electricity while restocking depleted coal inventories.

In many coal basins nationally, coal pricing more than doubled in 2022 and remained high into 2023.

This effect on coal pricing was made worse by the war in Ukraine, when many U.S. mines, including those in Utah and Colorado, rushed to take advantage of high coal prices by exporting coal to Europe.

The depleted coal supplies worsened when the Lila Canyon underground mine near Price, Utah, which is operated by Emery County Coal Resources, a unit of American Consolidated Natural Resources, suffered a fire in September 2022, according to Garlish.

The mine, which has been unable to recover from the fire, laid off the workforce earlier this year.

In 2021, Lila Canyon produced nearly 3.5 million tons. Most of the coal was consumed by the Hunter and Huntington power plants in Utah, Garlish said.

Power Savings

Hank Kobulnick, a former pilot with United Airlines who moved from Chicago to Laramie to be closer to family, attended the workshop to see if RMP could offer any electricity savings for his church, United Presbyterian.

“We put in a new furnace and LED lights,” said Kobulnick, who said RMP helped defray some of the costs in making these purchases. “I’m just looking for ways to save on energy costs.

“If rates go up, I understand why, but there are ways to cut down on the bills.”

He’s considering the purchase of motion detectors that turn off lights in the church as another way to save on power bills.

Ronnie Zimmerman, an engineer with RMP’s Wattsmart business program, said churches, small restaurants, schools and hotels are prime targets for his program to save on power bills and avoid rising costs.

“RMP will help with LEDs and subsidies,” said Zimmerman, pointing to customers who receive discounts through bulb purchases at Home Depot and Lowes home improvement stores that RMP helps with.

“People should care about these programs because everyone is feeling pinched,” he said. “To reduce electricity usage means to keep your bill flat.”

RMP’s latest rate hike comes on the heels of a controversial rate case last year when RMP wanted to boost everyone’s power bills by nearly 30%. Through litigation between the PSC and RMP, and following angry public hearings throughout the state, the rate increase was whittled to 8.3%, giving RMP $53.9 million.

The 8.3% increase last year, which went into effect at the beginning of 2024, came in a general rate case — which happens every few years.

The hike request filed in April is the standard energy cost adjustment that RMP does annually.

In this case, RMP wants to raise monthly power bills across the Cowboy State by 12.3%, or about $86.4 million for residential, commercial and industrial customers. The other 4.2% would be realized through a tax benefit.

On average, residential customers will see their monthly bills rise 9.3%, or about $12 per month on their utility bill if the whole increase is approved.

Hidden Costs

There are typically many complicated factors involved in determining electricity bills.

The rate hike RMP announced in April is an annual cost adjustment, which is subject to review by the PSC.

The general rate increase is different than the annual energy cost adjustment that RMP wants to recover from all customer classes beginning in July.

There are other cost pressures hitting the bills of RMP’s customers.

For instance, the 12.3% increase doesn’t include a key tax benefit that effectively lowers a customer’s bill.

That tax benefit for electricity customers contained in the Tax Cut and Jobs Act of 2017 goes away beginning July 1.

Over the past three years, customer bills included the tax benefit totaling nearly $85 million. It’ll have the effect of adding another 4.2%, or $29.9 million, to everyone’s utility bills once the tax benefit goes away.

Between the annual energy cost adjustment and the tax benefit going away, a typical residential customer using 700 kilowatt-hours of electricity per month would see their monthly bill rise $16.

Garlish told Cowboy State Daily that RMP had wanted to spread out the tax benefits for Wyoming customers over a much longer period so that it could minimize the financial disruption caused by the $85 million subsidy over a three-year period.

Before joining PacifiCorp in 2020, Garlish served as senior vice president and general counsel at Peak Reliability, a Washington-based firm that worked on reliability services and markets in the U.S. West.

Earlier in his career, he held several senior positions at Boise-based Idaho Power Co., including senior counsel, director and general manager.

Garlish also served as senior corporate counsel at Sioux Falls, South Dakota-based NorthWestern Energy Group Inc.

Overall, Garlish oversees an RMP territory of more than 1.2 million customers throughout the Cowboy State, Idaho and Utah.

Pat Maio can be reached at pat@cowboystatedaily.com.

Air Force fears lead Wyoming Bitcoin miner operator warning to divest interest due to alleged ties with China, following President Biden’s order in the United States.

Crypto and Bitcoin regulations are evolving in the United States. However, judging from the current administration’s declarations over its years in power, analysts think President Biden opposes cryptocurrencies.

Their position is clear from claiming that Bitcoin mining is a waste and that the United States SEC is cracking down on protocols launching on decentralized networks.

While Bitcoin mining has been said to benefit the national grid and help stabilize the network during surges, an executive order issued on Monday could hint at what lies ahead.

Divest Your Operations: President Biden Orders

Citing national security concerns, President Biden ordered MineOne Partners Limited, a company registered in the British Virgin Islands, to divest their interest in a Bitcoin mining facility, alleging ties to China.

The mining farm in Wyoming is roughly a mile from the Francis E. Warren Air Force Base. State and Federal authorities were reportedly not comfortable with the miner being near such a critical installation managing nuclear-armed intercontinental ballistic missiles. 

Moreover, the committee overseeing foreign investment risks said that besides the proximity, “specialized equipment” was shipped to enable mining.

President Biden is taking action roughly a year after MineOne acquired the data center. The United States government wants its operators to sell their holdings within four months. 

As part of the “insurmountable” risks, the committee said MineOne operators won’t access the site. Moreover, they have three months to remove all physical structures or installations.

In 2022, Microsoft, a United States technology company with a data center in the same area, also raised concern that MineOne could enable intelligence operations near the Air Force base. 

Microsoft reported MineOne to an inter-agency Committee on Foreign Investment in the United States.

DISCOVER: How to Buy Bitcoin ETF in May 2024 – Guide

United States Is A Power House In Bitcoin Mining

Following the ban on crypto mining operators in mainland China in 2021, most operators shifted their gear to the United States. This migration allowed the United States to be the world’s largest source of Bitcoin hash rate.

Leading companies like Riot Blockchain and Marathon Digital continue to operate and expand, even going public. The Foundry USA is also the largest mining pool.

(Hash Rate Distribution)

Even so, amid the boom, there have been concerns.

In February, residents of Granbury, Texas, complained about the noise pollution from the mining farm. The irritating “hum” from the cooling fans needed to keep miners cool, one resident said, is “like sitting on the runway of an airport where jets are taking off, one after another.”

In 2022, New York imposed a moratorium on Bitcoin mining, citing concerns about the overuse of renewable energy resources.

EXPLORE Bounce Bit Price Analysis – Can This New BTC DeFi Token 10x After a 90% Skyrocket?

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital

Chance for rain in many areas of Wyoming on Wednesday, sunny in others. Highs mainly in the upper 50s and the 60s. Lows from the low 30s to the upper 40s. 

Central:  

Casper:  Rain is likely today, mainly before 1 p.m., otherwise skies should gradually clear with a high near 60 and it should be mostly clear overnight with a low near 44.  

Riverton:  Expect it to gradually become sunny today with a high near 67 and be partly cloudy overnight with a low near 41. 

Glenrock:  There’s a chance of rain today, otherwise look for it to gradually become mostly sunny with a high near 60 and be mostly clear overnight with a low near 39.

Southwest:  

Evanston:  It should be sunny today with a high near 62 and mostly clear overnight with a low near 35.

Green River:  There’s a slight chance of rain after 5 p.m. today, otherwise look for it to be mostly sunny with a high near 63 and mostly clear and breezy overnight with a low near 40 and wind gusts as high as 21 mph.

South Pass:  There’s a chance of rain today, otherwise expect it to be partly sunny and breezy with a high near 53 and wind gusts as high as 21 mph. Overnight it should be mostly clear with a low near 38.

Western Wyoming:  

Pinedale:  It should be mostly sunny and breezy today with a high near 60 and wind gusts as high as 23 mph. Overnight it should be partly cloudy with a low near 34 and wind gusts as high as 20 mph.

Alpine:  Expect it to be partly cloudy today with a high near 68 and partly cloudy overnight with a low near 38. 

Big Piney:  Look for it to be mostly sunny and breezy today with a high near 62 and wind gusts as high as 32 mph. Overnight it should be partly cloudy and breezy with a low near 32 and wind gusts as high as 23 mph. 

Northwest:  

Dubois:  There’s a chance of rain mainly after 4 p.m., otherwise it should be partly sunny and breezy today with a high near 61 and wind gusts as high as 28 mph. Overnight it should be partly cloudy and breezy with a low near 37 and wind gusts as high as 21 mph.

Jackson:  Look for it to be sunny today with a high near 67 and partly cloudy overnight with a low near 36.  

Old Faithful in Yellowstone National Park:  Expect it to be mostly sunny today with a high near 59 and partly cloudy overnight with a low near 33.

Bighorn Basin:

Thermopolis:  Look for it to gradually become sunny today with a high near 66 and be partly cloudy overnight with a low near 44.

Cody:  Expect it to be mostly sunny today with a high near 64 and partly cloudy overnight with a low near 49.

Greybull:  It should become sunny today with a high near 70 and be partly cloudy overnight with a low near 47.

North Central:  

Buffalo:  There’s a chance of rain mainly after 3 p.m. today, otherwise it should be partly sunny and breezy with a high near 59 and wind gusts as high as 21 mph. Overnight it should be partly cloudy and breezy with a low near 48 and wind gusts as high as 23 mph.

Sheridan:  Watch for patchy fog before 9 a.m. and there’s a chance of rain mainly after 3 p.m., otherwise expect it to be partly sunny today with a high near 67 and partly cloudy overnight with a low near 43.

Big Horn:  Watch for patchy fog before 9 a.m. and there’s a chance of rain mainly after noon, otherwise look for it to be partly sunny today with a high near 65 and partly cloudy overnight with a low near 45.

Northeast:  

Gillette:  There’s a slight chance of rain, otherwise skies should gradually clear with a high near 62 today and winds could gust as high as 20 mph. Overnight it should be partly cloudy with a low near 44 and wind gusts as high as 16 mph.

Sundance:  There’s a chance of rain today, otherwise look for it to gradually become sunny with a high near 59 and winds could gust as high as 18 mph. Overnight it should be partly cloudy with a low near 42.

Upton:  There’s a chance of rain, otherwise skies should gradually clear today with a high near 63 and it should be partly cloudy overnight with a low near 40.

Eastern Plains:  

Torrington:  There’s a chance of rain after noon, otherwise it should be mostly cloudy today with a high near 64 and mostly clear overnight with a low near 39. 

Douglas:  There’s a chance of rain, otherwise look for it to gradually become mostly sunny today with a high near 61 and it should be mostly clear overnight with a low near 37.

Kaycee:  There’s a chance of rain today, otherwise expect it to gradually become mostly sunny today with a high near 59 and be partly cloudy overnight with a low near 45.

Southeast:  

Cheyenne:  There’s a chance of rain today and tonight before midnight. Otherwise, it should be partly sunny today with a high near 58 and partly cloudy overnight with a low near 36. 

Laramie:  There’s a chance of rain today and tonight before midnight. Otherwise, look for it to be mostly cloudy today with a high near 55 and partly cloudy overnight with a low near 33. 

Medicine Bow:  There’s a chance of rain today and a slight chance before midnight tonight. Otherwise, expect it to gradually become mostly sunny today with a high near 55 and be mostly clear overnight with a low near 33.

South Central:  

Rawlins:  There’s a chance of rain today, otherwise expect it to be partly sunny with a high near 57 and mostly clear overnight with a low near 37.

Encampment:  There’s a chance of rain, otherwise it should be mostly cloudy today with a high near 57 and mostly clear overnight with a low near 34.

Baggs:  There’s a slight chance of rain today, otherwise look for it to be partly sunny with a high near 64 and mostly clear overnight with a low near 35.