PacifiCorp Abandons Renewable Energy Expansion in Multi-State Strategy
In a significant policy reversal, PacifiCorp—the parent company of Rocky Mountain Power—has officially halted all plans for new wind and solar energy projects across its six-state service area, including Wyoming, Utah, Idaho, and California. The decision, documented in the utility's updated long-range planning document from March, marks a stark departure from previous commitments to expand renewable generation through 2045.
Policy Repeal Drives Strategic Shift
The company attributes this dramatic change primarily to the July 4, 2025, repeal of major portions of the Inflation Reduction Act, enacted through the "One Big, Beautiful Bill Act." This legislation phases out or eliminates crucial tax benefits that had previously reduced the cost of wind and solar projects by approximately 30%. PacifiCorp notes that under the new phase-out schedule, projects would need to begin construction within the next year to qualify for remaining credits, a timeline that has rendered many planned developments economically unfeasible.
"Changes in this update are largely driven by the July 4, 2025, repeal of major portions of the Inflation Reduction Act," the company stated. "The repeal was enacted through the ('One Big, Beautiful Bill Act'), which, significantly, phases out or eliminates highly impactful tax benefits, primarily for renewable solar and wind generation resources."
Coal Gains Competitiveness as Emissions Trajectory Rises
Concurrently, the utility has delayed retirement dates for several coal power plants in recent years, including facilities in Wyoming. PacifiCorp's new long-term outlook explicitly notes that its greenhouse gas emissions trajectory, which had been declining, will now increase. The company suggests that Trump administration rollbacks of fossil fuel regulations "may make coal a more competitive fuel source" in the current policy environment.
Emma Jones, Organizer for the Sierra Club Wyoming Chapter, expressed concern about the implications. "The update does not look good at all for renewable energy," Jones told WyoFile. She emphasized that such integrated resource plans continually change, as regulated utilities like PacifiCorp are required to file new plans every two years and frequently update them between filings.
Renewable Energy's Past Role in Mitigating Costs
This strategic shift comes amid a series of rate hikes that have increased Wyoming customers' bills by about 20% since 2020. Utility officials have previously testified that renewable energy additions were not responsible for these increases but actually helped prevent even steeper rises. Former Rocky Mountain Power President and CEO Gary Hoogeveen testified in 2023 that "It is the company's investment in these renewable resources that have mitigated the increase in net-power costs. Without the company's investment in these resources, the increase in net-power costs would have risen an additional $85.4 million or 65% in Wyoming."
Immediate Projects and Long-Term Uncertainty
Despite halting future renewable installations, PacifiCorp still has several projects nearing completion. Rocky Mountain Power spokesman David Eskelsen confirmed that "The preferred portfolio includes about 1,200 megawatts of new solar located in Utah, over 400 megawatts of new wind located in Idaho and 26 megawatts of new wind located in Wyoming." Some of these facilities will generate power dedicated to PacifiCorp customers in Oregon and Washington.
PacifiCorp currently accounts for approximately 35% of Wyoming's 3,700 megawatts of installed wind-generated electrical capacity, according to the U.S. Energy Information Administration. One megawatt can power about 750 homes. The utility's retreat from renewable development creates uncertainty for the industry, as PacifiCorp has historically driven much wind energy development in Wyoming through requests for proposals and power purchase agreements.
Industry Speculation and Future Possibilities
Some industry observers speculate that Wyoming cooperatives might step in to develop renewable projects for their own needs, while data centers could become a significant driver for wind energy development. Jones of the Sierra Club maintains that wind and solar energy have gained sufficient efficiencies to potentially overcome the loss of federal tax credits. She suggests other utilities, responding to ratepayer demand for low-cost electricity, may continue adding renewable energy to their portfolios.
"I think the problem is that, even if (PacifiCorp officials) decide down the road, 'We're going to invest in renewables again,' the delay that they're creating is ultimately going to cost customers money that would have been saved by putting cheaper renewable energy online sooner," Jones said. She added that the general utility industry sentiment holds that building today is cheaper than building years later, meaning delays in infrastructure development will likely increase long-term costs for consumers.
PacifiCorp, part of Warren Buffett's Berkshire Hathaway energy conglomerate, notes that it is not obligated to follow its 20-year planning document, which serves as a guideline rather than a binding commitment. However, Jones points out that such plans create "signals" that solidify electrical generation investments in the short term, potentially discouraging renewable energy developers who rely on utility commitments to justify their investments.
