Utah Power Says New Plant Won't Stop Black Outs

By Steven Oberbeck, The Salt Lake Tribune -- Mar. 3

Even if Utah Power gets Public Service Commission approval to start building its Currant Creek power plant in time to complete construction by midsummer 2005, the utility still fears it will be unable to prevent blackouts from rolling across the state.

PacifiCorp, the Oregon-based utility that operates in Utah as Utah Power, projects it will need to find about 580 megawatts of electricity if Currant Creek isn't built and 250 megawatts if the plant's natural gas-fired generators go on line to produce power for the expected high summer demand 18 months from now.

"Currant Creek was never intended to solve all of the company's load imbalance," said Mark Tallman, managing director of trading and origination at PacifiCorp.

Tallman told the PSC during the final day of hearings on the controversial $345 million project Utah Power wants to build near Mona in Juab County that the company looked everywhere for power available for delivery in 2005. "And so far we have only been able to come up with 50 megawatts."

A megawatt is enough electricity to power approximately 750 homes.

Utah Power's Currant Creek plant came under fire last year after the company requested bids for power resources, reviewed dozens of proposals, then chose to build a plant itself.

Utah Power contends it can build Currant Creek for $350 million, nearly $320 million less over the life of the plant than the next-lowest cost alternative.

Utah utilities attorney Gary Dodge, who represents the Utah Association of Energy Users, accused the company of "blackout blackmail" as it tried to get quick approval for construction.

Dodge said Monday he hopes regulators will hold off approving the project so a process can be established that will ensure the bidding process is fair so consumers can feel comfortable PacifiCorp selects the best deals in the future.

"We need to get through the summer [without blackouts], and there are ways to do it," Dodge said. "There is plenty of power available but the price and terms have to be right and the parties have to be motivated."

Kenneth Morris, PacifiCorp's director of transmission planning, said there is an advantage to building a plant. "It is more reliable, particularly when it frees up transmission capacity so we can bring in additional purchased power when needed."

The PSC took under advisement PacifiCorp's request that it be granted permission to proceed with development of Currant Creek.