Logan utilities chief seeks contract for coal-fueled power from Delta

LOGAN – The city’s utility chief is recommending a long-term contract for coal-fired power from a central Utah plant.

Other communities, especially in California, are backing out, searching instead for electricity made from a cleaner source. But the director of Logan City Power and Light said his utility needs power and could save millions over three decades by investing now.

”Whether or not Logan participates or does not participate at all will not change the fact that it’s going to be built,” Jay Larsen said.

”Does Logan want to take advantage of the many years of investments we’ve made in that plant or not? That’s really the bottom line,” he said.

Intermountain Power Agency plans to build a 900-megawatt power plant, its third, in Delta and will pay for it by signing long-term contracts with cities across the West. Thirty-three have signed up, Larsen said.

Logan would pay about $58 million to help build the new plant. In return, the city gets access to 20 megawatts of electricity, enough to light about 14,000 homes.

Logan already buys 44 megawatts of power from the power agency. By 2012, Larsen said he anticipates demand will jump to about 120 megawatts from 90 megawatts.

It’s unknown when the Municipal Council will vote on the issue.

If a cleaner, renewable power source can be found, the

city could sell a portion of its coal-fired electricity to other communities, Larsen said.

In November, Pasadena, Anaheim and other California cities said they would not be renewing contracts with Intermountain Power when they expire in 2027. A state law there requires utilities to get 20 percent of their power from renewable energy by 2010.

The new power plant is scheduled to be ready by 2011.

Source: www.sltrib.com