Kent O. from Nampa, Idaho. I'm working on a large commercial account analysis for Rocky Mountain Power and trying to understand all the fees and taxes that get added on top of the base rates. I see references to franchise fees and gross receipts taxes in their tariff but it's not clear how these are calculated. Anyone familiar with RMP's fee structure in Idaho?
Hidden fees in Rocky Mountain Power tariffs - franchise fees and gross receipts taxes
Connie A. in Salt Lake City. Kent, Rocky Mountain Power's franchise fees vary by city - each municipality negotiates their own rate. In Salt Lake City it's 3.5% of the total bill. Gross receipts tax is statewide in Utah at 0.5% but I'm not sure about Idaho's structure. The tariff usually has a schedule showing fees by service territory.
Tom L. in Boise here. Idaho doesn't have a statewide gross receipts tax on utilities like Utah does. The franchise fees depend on the specific city. Boise charges 5% on electric bills, Nampa is 4%. These should show up as separate line items on the customer's bill, not buried in the energy rates.
Thanks Tom, that helps explain why I wasn't seeing gross receipts tax in the Idaho tariffs. The franchise fee structure makes sense now. So for accurate total cost analysis, I need to add the local franchise fee percentage to whatever the tariff rates calculate to. Are there any other hidden fees I should watch for?
Randy Dawson here. Kent, beyond franchise fees you should also account for the universal system benefits charge, energy efficiency rider, and any applicable transmission cost recovery mechanisms. RMP has several riders that adjust monthly or quarterly. Also check for economic development incentives - some Idaho cities offer electric rate discounts for qualifying businesses that effectively offset franchise fees. The complete fee picture can add 6-8% to the base tariff rates depending on location.
Randy, excellent point about the economic development incentives. I hadn't considered that angle. This client is a manufacturing facility that might qualify. Do you know if those incentives are administered through RMP directly or through the local economic development authority?
Kent, economic development incentives are usually handled at the city or county level, not through RMP. Contact your local economic development office. Nampa has some good programs for manufacturers - they might offer property tax abatements along with utility incentives.
Perfect, thanks Tom. I'll reach out to Nampa's economic development office this week. This thread has been incredibly helpful for understanding the complete cost picture beyond just the published tariff rates.