Rocky Mountain Power wants to cut $375 million in energy charges for Utah customers, a proposal that could lower bills in Cottonwood Heights and Holladay.

The utility filed the decrease through its annual Energy Balancing Account (EBA), a mechanism that adjusts rates based on the actual cost of supplying electricity. The EBA is separate from base rates, which cover fixed costs like infrastructure and maintenance. The filing would reduce variable energy charges by $375 million compared to the prior year, resulting in a net EBA charge of about $191 million, as first reported by the Deseret News.

The proposal is not final. The Utah Division of Public Utilities is reviewing the filing through Nov. 5.

Rocky Mountain Power presented the pending EBA filing at a Sept. 16 Utah legislative interim committee meeting. Company representatives said cheaper natural gas, lower wholesale market prices and improved domestic coal supplies are driving the decrease.

Utah Office of Energy Development Director Emmy Lesofski told the same committee that Utah remains among the most affordable states for electricity. "We're consistently in the top five most affordable rates in the country," Lesofski said.

Utah's average residential electricity rate is about 13.37 cents per kilowatt-hour as of September 2026. That is roughly 22% below the national average of 18.34 cents, according to ElectricChoice.com. Rocky Mountain Power serves about 1 million customers statewide.

The EBA has swung sharply in recent years. In 2021, Rocky Mountain Power requested a $90.6 million EBA. By 2024, that figure jumped to $472 million. The proposed $375 million decrease marks a reversal.

Behind the shift is a changing energy mix. Utah generated 94% of its power from coal in 2000. As of 2025, the mix had shifted to roughly 48% coal, 31% natural gas and 15% solar, while producing about the same total amount of electricity. Utah coal production rose about 15% between 2024 and 2025, climbing from 7.4 million short tons to 8.5 million, according to a University of Utah study. That increase came as Biden-era coal regulations began to roll back.

The EBA filing comes on the heels of a separate July 2026 rate settlement. That deal, reported by Utah News Dispatch, added a 4.2% general rate increase but paired it with a 10.6% decrease in energy charges. Rocky Mountain Power said the net effect would reduce a typical residential customer's monthly bill by about $11.

For Holladay residents, the picture includes one additional factor. The Holladay City Council voted 5-1 in July 2026 to join Utah's Community Clean Energy Program, which will add $4 per month to residential bills starting in early 2027.

The Division of Public Utilities is expected to rule on the EBA filing around Nov. 6.