Utah Utility Clean Energy Fees to Begin in January
Nonresidential customers in 16 communities will face new surcharges unless they opt out of the automatic enrollment program.
Updated on Oct. 21, 2026 in Utilities
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Beginning in January 2027, Rocky Mountain Power will launch a new clean energy program for 16 Utah communities, featuring automatic enrollment for residents and businesses. The program aims to integrate up to 500 megawatts of renewable energy into the grid, significantly impacting utility costs for subscribers.
Why it matters
The program represents a structural change to utility billing for businesses in participating communities, shifting the default cost model to include new per-kWh charges for renewable energy. Operators must monitor their overhead, as the auto-enrollment feature requires proactive opt-out decisions to avoid these additional monthly expenses.
The program covers 16 communities and is expected to contribute 500 megawatts of new clean energy, with nonresidential users facing a new $0.00609 per kWh rate and a $0.12 monthly surcharge. Residential customers will pay an additional $4 per month unless they opt out or qualify for assistance.
The players
Rocky Mountain Power
An electric utility company providing power to customers across the Intermountain West.
Utah Public Service Commission
The state regulatory agency responsible for overseeing utility rates and industry compliance.
Utah Renewable Communities
A coalition of 16 local jurisdictions collaborating on renewable energy solutions.
The details
The program utilizes an automatic enrollment structure, meaning businesses in the 16 participating areas will be enrolled by default unless they submit an opt-out request. Charges for nonresidential customers are tiered by usage through a variable rate per kWh, while standard residential customers see a flat monthly fee. Net metering participants are ineligible for this program, and all participants have until May 1, 2027, to cancel their enrollment without incurring potential fees.
Timeline
March 2026: Utah Public Service Commission approved the program.
November 2026: Rocky Mountain Power distributes enrollment notices.
January 2027: Program participation takes effect.
May 1, 2027: The fee-free cancellation period ends.
Market Landscape
This program follows the regulatory framework established by the Utah Public Service Commission to manage utility-led renewable energy transitions. It marks a shift from voluntary green power programs to community-wide models that utilize automatic enrollment to scale clean energy capacity.
Business operators in the 16 participating communities should review their upcoming utility billing notices to determine if the additional $0.00609 per kWh surcharge impacts their operating margins. Companies that prefer to maintain current energy procurement terms must confirm their opt-out status with Rocky Mountain Power before the program takes effect.
The takeaway
The transition to a community-wide renewable model requires immediate attention to default utility billing structures. Operators should flag May 1, 2027, as a key date to finalize their participation status before the fee-free cancellation window closes.
Further reading
For more information on the evolving utility landscape, visit our guide on Utilities.
Source note: This article includes information reported by Park Record.
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