The Utah Public Service Commission has declined to open an investigatory docket in response to Utah Clean Energy’s request for swift action to secure clean energy resources while they still qualify for expiring tax credits. However, in its ruling, the Commission made it clear that Rocky Mountain Power (RMP) is expected to pursue low-cost, tax advantaged energy resources when possible, and that actions to do so will be prioritized. In its order, the Commission stated:
“To the extent opportunities exist for RMP to capitalize on time-limited opportunities to fill existing resource needs with projects that can be reasonably expected to qualify for expiring, beneficial tax-treatment, the PSC expects RMP to pursue them. The PSC gives notice that it will expedite its consideration of any applications RMP files to solicit or procure such resources.”
The ruling comes at a critical time. Utah’s energy demand continues to skyrocket, and RMP’s 2025 Integrated Resource Plan calls for building new energy resources to keep pace. But each new investment in energy will ultimately be paid for by utility ratepayers. That means the decisions made today about what kind of energy to invest in will directly impact the monthly bills of Utah families and businesses.
“Expiring federal clean energy tax credits offer a powerful opportunity to bring online new solar, wind, and battery storage projects at record-low prices. The Commission’s response is an important signal of the economic opportunity on the table for Utah ratepayers,” states Dr. Logan Mitchell the Climate Scientist and Energy Analyst at Utah Clean Energy.
According to Utah Clean Energy’s calculations, developing new solar, wind, and battery storage projects that qualify for the federal tax credits are significantly cheaper than any other new electricity resource available today. Building these resources now can bring millions of dollars in savings for the energy Utah needs. The catch is that only projects that are approved and underway within the new IRS guidelines will be able to utilize the credits.
In comments to the Commission, Interwest Energy Alliance which represents clean energy developers, confirmed that there are shovel-ready projects that would likely qualify for the tax credits, but that “obtaining final regulatory approval of projects … is necessary to take affirmative steps to commence and complete construction in time to satisfy IRS guidelines.” In short, there are projects that are ready to be built. It is up to Rocky Mountain Power to take the steps necessary to bring new resources online quickly.
The Commission also noted that while it lacks authority to dictate Rocky Mountain Power’s procurement decisions, the utility’s actions, or inaction, will be scrutinized in future rate proceedings. “The reasonableness of RMP’s actions in evaluating and acting on any time-sensitive opportunities may certainly be a material factor in future rate proceedings,” the order states.
This opportunity comes at a time when Rocky Mountain Power has sought significant increases in rates for Utah customers. Rocky Mountain Power recently made headlines for requesting a hefty rate increase of 30.5% for Utah customers. The Commission pushed back and ultimately only approved a portion of their request, resulting in an approximate 15% electricity bill increase in 2025 Not acting now to secure the most cost-effective resources increases the risk of additional rate increases in the future.
“Failing to act now to leverage zero-fuel-cost energy resources that qualify for federal tax credits will lead to higher costs for Utah families. It is that simple,” states Mitchell.
The Commission further directed Rocky Mountain Power to provide a detailed update in its next Integrated Resource Plan (IRP) Update in spring 2026, outlining how it has responded to the changed federal landscape and the opportunity to secure tax-advantaged resources.
“This is a rare and fleeting opportunity to invest in homegrown, ultra-affordable clean energy,” Mitchell added. “It supports Governor Cox’s Operation Gigawatt goal and ensures Utahns benefit from reliable, low-cost energy for decades to come.”
