Unfortunately they almost always are. The utilities are in the enviable position of buying wholesale power from renewable generators on 20 to 25 year fixed price, flat contracts. Of course they would never agree to sell power to the customers on the same terms - which is why it is great being a utility!

No its not. If prices fall utilities lose vast amounts of money. And they do a lot of hedging too.

I can only speak to California utilities, but in CA, by law, utilities are permitted to earn 11% return on capital. As there is no customer choice when it comes to electric power (you only have one provider running a wire to your home), the utilities simply get the rate approved that they need to generate the allowable return. So prices don't "fall", because the utility is constantly investing in new assets (generation, transmission, smart meters, new power purchase agreements) raising their capital base and thus either sustaining or raising the rates (price) to consumers.