Wyoming farmers and ranchers are facing a significant rate hike from Rocky Mountain Power, the state’s largest regulated electric utility. The proposed $71 million rate hike would result in a 37.7% increase for agricultural irrigation customers, including Tim Teichert and Jason Thornock, who irrigate alfalfa fields in the Cokeville area.

Impact on Agricultural Industry

The rate hike would have a devastating impact on the agricultural industry in Wyoming, according to Jim Magagna, Executive Vice President of the Wyoming Stock Growers Association. Magagna stated that the increase would make it difficult for farmers to afford the cost of irrigation, which is already high due to drought conditions.

Teichert and Thornock, who have been shifting from flood irrigation to pump-and-pivot irrigation to make more efficient use of limited water resources, are concerned about the impact of the rate hike on their businesses. They have been advocating for an increase in the net metering cap, which would allow them to generate their own electricity and offset their power demand.

Rate Hike Proposal

Rocky Mountain Power has proposed a rate design that would allocate costs among different customer classes based on their demand and energy usage. The company claims that the rate hike is necessary to ensure a 7.56% rate of return and to cover the costs of new capital projects, higher operations and maintenance costs, and inflationary pressures.

However, Teichert and Thornock are skeptical about the need for the rate hike, citing the company’s history of rate hikes and the lack of transparency in the proposal. They are also concerned about the reliability of the service, citing instances of “dirty power” that have caused their irrigation pumps to malfunction.

Original reporting: Oil City News (Casper WY) — read the source article.