In a recent government meeting, officials discussed the approval of two significant natural gas power projects in collaboration with the Utah Associated Municipal Power Systems (UAMPS). The Millard County Power Project and a related power sales contract were presented as essential steps to meet the growing energy demands of the city.
The projects include a peaking plant with a capacity of approximately 200 megawatts and a base load facility with a capacity of around 360 megawatts. Both plants are designed to utilize natural gas and have the potential to incorporate hydrogen fuel in the future. The peaking facility will be located west of Fillmore, while the base load plant is planned for Power County, Idaho.
City officials emphasized the urgency of moving forward with these projects to secure a spot in the transmission study queue with Rocky Mountain Power, which has a deadline of January 2025. Missing this deadline could delay the projects by a year or more. The anticipated costs for the peaking plant are projected at $112 per megawatt-hour, while the base load facility is estimated at $69 per megawatt-hour, both of which are competitive compared to current market rates.
The council highlighted the importance of these projects in addressing the city's future energy needs, particularly as existing contracts expire and demand continues to rise. A subscription level of 85% is required for both projects to proceed, with the council planning to vote on the resolutions separately in the coming weeks.
Officials also noted that the projects underwent a thorough site selection process, ensuring proximity to natural gas sources and transmission substations to minimize interconnection costs. The timeline for the peaking plant is set for completion by the end of 2029, while the base load facility is expected to be operational by 2031.
As the city prepares for these developments, officials remain committed to balancing immediate energy needs with long-term sustainability goals, ensuring that the community is well-equipped to handle future growth.