Brigham City Council approves $24M power generation project with Wheeler

The Brigham City Council convened on May 15, 2025, to discuss significant developments regarding a proposed $24 million power generation project. The meeting focused on the project's financial implications, engineering considerations, and the necessary air permit required to proceed.

The council began by addressing the project's estimated cost of $24 million, which includes contingencies for potential increases due to inflation and other variables. Council members noted that the original cost projected in 2017 was significantly lower, highlighting the impact of inflation on project expenses. Preliminary geotechnical surveys have been conducted, although the results are still pending, which may influence the building design.

A key point of discussion was the decision to move forward with the project despite uncertainties surrounding the air permit. The contractor, Wheeler, has expressed willingness to begin engineering work at their own risk, which would mitigate financial exposure for the city if the permit is not granted. If the air permit is acquired, the city would be committed to advancing the project.

The council also discussed the financial structure of the project, including a proposed bond payment of approximately $1.8 million annually over 20 years. This payment will necessitate a review of future electrical rates, as staff indicated that a rate increase would likely be recommended to cover the bond obligations. The council acknowledged the need for a rate study to assess the impact on residents.

In terms of project timeline, completion is estimated to take between 18 to 20 months from the start date, contingent upon securing the necessary permits and finalizing engineering designs. The council emphasized the importance of controlling power generation to mitigate exposure to fluctuating market prices, particularly given recent spikes in electricity costs.

The meeting concluded with a motion to approve the resolution authorizing the capacity purchase agreement between Brigham City and UAMS, along with related agreements. The council's decision reflects a commitment to enhancing local power generation capabilities while navigating the complexities of financing and regulatory requirements.