Effective Jan. 1, Agrium Inc.’s phosphate fertilizer complex and Monsanto’s elemental phosphorus plant, both in Southeast Idaho’s Caribou County, saw their Rocky Mountain Power electrical rates go up by 9.4 percent and 9.6 percent, respectively.
The rate hikes were approved by the Idaho Public Utilities Commission following a large turnout at two public workshops, a three-day technical hearing and five public hearings, and hundreds of written comments from customers who expressed concerns about rate increases in a variety of categories during an economic downturn.
Rocky Mountain Power serves 70,000 customers in Eastern Idaho. The utility had proposed raising Agrium’s power rate by 14.7 percent and Monsanto’s rate by 18.2 percent. Residential customers will pay a net increase of about 5.5 percent.
“Over the last eight years we have experienced nearly one million dollars in rate increases,” said Paul Poister, an Agrium spokesman. “This most recent increase will add about $570,000 to our rates. Increases from time to time are expected, but we believe this rate hike is excessive and oppose it.”
A final order in the case will not be issued until late February. Issues related to the contract between Rocky Mountain Power and Monsanto, its largest customer, were examined over two months, with a technical hearing scheduled for Feb. 1. The final order will determine what Monsanto should be paid for allowing Rocky Mountain to interrupt service during certain times of the year. Petitions for reconsideration or appeals can be made after the final order is issued in February.
“Electricity is a significant cost of business for Monsanto’s Soda Springs Plant, and we work diligently to keep production costs low for the benefit of our customers,” said Jim Smith, Monsanto power procurement manager. “Monsanto accepted this January rate increase only because it reflected a rising power market at the time. Similarly, we expect to get credit for this increase in general rate proposals coming later this year, and those proposals will reflect more recent market trends.”
Rocky Mountain recently asked for the largest rate hike in its history in Utah a $232.4 million increase of 13.7 percent. The utility warns that Utah customers may see annual price increases of 8-10 percent annually for the next decade due to increasing demand and use.