Cities ask voters to invest in Utah coal plant

 

By Jennifer Sandmann
Times-News correspondent

 

BURLEY — A ballot proposal local voters will decide in November is about power bills and how to keep them stable, but it’s also tied to a growing Western environmental issue.

Voters who live within Burley, Heyburn and Rupert city limits will be asked to invest in a 900-megawatt coal-fired power plant to be built near Delta, Utah, about 350 miles south of the Mini-Cassia area.

Planners feeling pressed to secure a stable electric supply say the Utah plant gives the community room to grow and rate stability.

“This is like having adequate sewer and water,” Burley Mayor Jon Anderson said.

“In our estimation this is a really important thing for the future growth of our city, because we would hate to have someone come in and say, ‘You can’t put lights on in our building, so we have to go somewhere else.’“

Each city needs two-thirds voter approval to issue bonds for the amount of power they want to reserve. The debt will be repaid through electrical rates.

Cost will be about $2.3 million per megawatt to finance the nearly $2.1 billion plant.

For Heyburn that is 1 megawatt at $2.3 million; for Rupert it’s 3 megawatts at $6.9 million; and for Burley it’s 10 megawatts at $23 million.

The debt is to be repaid over 30 years through electric rates that will commence once the plant is completed in 2012. When the debts are repaid, the utilities will be part owners in the plant.

Local utilities see more stability investing in the plant than turning to the wholesale power market to meet electricity needs.

“Everyone who is participating believes it will be lower price than market when it comes on line,” said Jackie Coombs, customer service administrator with Utah Associated Municipal Power Systems based in Salt Lake City.

The organization has 48 members in six Western states. It secures additional power resources for public utilities. The Delta plant is one such project.

The upcoming ballot vote follows Magic Valley residents’ successful campaign earlier this year to stop construction of a coal-fired power plant near Jerome. The state has since barred coal plant construction.

Idahoans already consume coal power — just not any generated within Idaho’s borders. Coal power generated in other states and transmitted here through the power grid along with electricity from other sources — including natural gas and some renewable energy — make up deficits in the Columbia River Basin hydropower system. More than 150 new coal-fired plants are in planning stages around the country, according to the U.S. Department of Energy.

Environmental policy groups such as Western Resource Advocates and others are gearing up to take on the issue.

They advocate that if coal is needed, the industry should use a cleaner technology that involves gasification of coal and less water. It costs more, and developing it may require federal incentives.

The Utah plant, called the Intermountain Power Plant Unit 3, already has secured an air permit and must operate with current clean air requirements. It will be built next to two existing 900 megawatt coal plants.

Environmental issues are a concern, said Ralph Williams, general manager of United Electric Co-op in Heyburn.

United Electric serves customers in Minidoka and Cassia counties and is joining the three local cities and Idaho Falls in considering buying into the Delta plant.

United Electric’s board has the discretion to make the decision, so voters served by United will not see the proposal on the ballot. United is looking at reserving 5 megawatts at a cost of $11.5 million.

“It all comes down to what is the most stable, reliable and affordable power source,” Williams said.

Conservation along with renewable energy such as wind and solar power are important components of the company’s portfolio, but the sun doesn’t always shine and the wind doesn’t always blow, Williams said.

Renewable power is a fuel-saver to be used when available, but it is not a stable main power source, he said.

Planners agree conservation is vital to the region. BPA says its programs have captured savings equivalent to a large nuclear power plant.

Jennifer Sandmann can be reached at local_mcnews@

hotmail.com.
Copyright © 2006, Lee Publications Inc.
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