Utah’s residential energy prices are the lowest in the nation, even as coal increasingly takes a backseat, according to a report released Thursday.
Utahns pay 11.33 cents per kilowatt hour on average, or about one-third lower than the cost of the nationwide average of 16.43 cents, a new research brief on the state’s energy sector from the University of Utah’s Kem C. Gardner Policy Institute and the Utah Geological Survey says.
(Christopher Cherrington | The Salt Lake Tribune)
The state’s investment in relatively cheaper electricity sources like coal, natural gas and solar has helped keep residential costs lower, even as Utahns are using more electricity than ever.
Electricity consumption in Utah reached a record high in 2024. But Utah’s electricity generation has yet to rebound to 2021 levels after hitting a 27-year low in 2023, the brief says, due to Utah’s coal-fired power plants not producing as much electricity as they used to.
In 2024, coal only made up 46% of the state’s total electricity generation, with only five coal mines operating — the fewest active mines in 150 years. Coal’s presence in Utah’s electricity mix has been on the downhill for years; electricity generated from Utah’s coal-fired power plants has decreased almost 60% since 2008.
Emy Lesofski, director of the state’s office of energy development, said at a media roundtable Thursday that she is “excited about the resources we have in the state,” which include renewables, fossil fuels and a potential nuclear program.
“We’ve got coal plants that have provided and powered … people’s lives for decades, and we anticipate that will continue as we continue to develop other resources,” Lesofski said.
“The demands for power right now are so high, and you’ve seen a change from coal being proposed to be shut down to, not anymore, because we need the power…and our coal plants provide that reliable power that we need,” she continued.
(Christopher Cherrington | The Salt Lake Tribune)
Coal-fired plants provide “baseload” power, meaning power that is always available, as opposed to energy sources like solar and wind that depend on the weather. But burning coal emits greenhouse gases like carbon dioxide, which contributes to global warming, and other pollutants that dirty the air.
Coal’s decline persists despite the Utah Legislature’s attempts to help the industry. Last year, lawmakers passed a bill making Rocky Mountain Power’s coal plants the state’s preferred power source. Rocky Mountain Power, the state’s largest electricity provider, then announced that it will keep its Emery County coal plants open for longer than previously planned.
Lower coal production levels in recent years, the report says, were the result of indefinite idling at the Lila Canyon and Coal Hollow coal mines. The mines have still not resumed operation, and as a result, Utah has imported more coal from other states than ever before, said Michael Vanden Berg, energy and minerals program manager for the Utah Geological Survey.
But Utah also saw its first new coal mine in 10 years open in September of last year with help from the Utah Inland Port Authority. The Fossil Rock mine, owned by Wolverine Fuels, will not reach full-scale operations until 2026, the report said. The Skyline and Sufco mines, also owned by Wolverine Fuels, made up 81% of the state’s coal production in 2024.
Power from solar and natural gas have picked up coal’s slack.
Natural gas production in Utah increased for the third year in a row, a byproduct of record-high oil production in the Uinta Basin in 2024. Last year, natural gas accounted for over a third of the state’s electricity generation.
The coal-fired Intermountain Power Project is also planning for a shift to natural gas and hydrogen, which will further reduce demand for coal and boost natural gas.
“The largest change in Utah’s electricity sector,” according to the brief, is solar power’s contribution to the energy mix. Solar, in 2024, made up 14% of the state’s electricity production.
Despite coal’s decline, Utah continues to be an energy exporter, meaning the state is producing more energy than needs. The excess is exported to other states and countries. The state slipped to energy importer status between 2020 and 2022, but returned to exporting in 2023 due to increases in oil and natural gas production.