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State officials say Intermountain Power Station will be kept operational as ownership options advance
Summary
State officials told the Public Utilities, Energy and Technology Committee that the Intermountain Power Plant will remain operational while the state evaluates an option to acquire and repurpose the facility.
SALT LAKE CITY — State officials told the Public Utilities, Energy and Technology Committee that the Intermountain Power Plant in Millard County will remain operational while the state examines options to acquire and repurpose the facility. Joel Ferry, executive director at the Utah Department of Natural Resources, and Bryce Byrd, director of the Division of Air Quality, described ongoing negotiations, a two‑year option agreement and an air‑permit review tied to future fuel conversions.
Ferry said the state and Intermountain Power Authority have an option agreement in place and that ‘‘during this 2 year period of option, IPP has agreed to maintain the units,’’ meaning the coal units remain functional and produce power now being delivered to California. He said the state’s Energy Council, managed through the Office of Energy Development, is working on strategic oversight should the state acquire the plant and that HB 70 establishes part of the statutory framework for the option and acquisition process.
Why it matters: the plant supplies large amounts of generation, supports jobs in rural Millard County and is being considered as a bridge source while Utah develops alternative generation, storage and transmission to meet growing electricity demand from data centers, electrification and other load growth.
Byrd described the air‑permit process for the plant. He said Intermountain Power Authority submitted a revised permit application in April and that the division completed technical review in June and issued a proposed permit for public comment in July, closing Aug. 18. ‘‘We’re now reviewing those comments,’’ Byrd said, adding the Division of Air Quality and the attorney general’s office are preparing responses and that the division expects to issue the final permit in the near term under its existing authority and the federal Clean Air Act. Byrd also noted that, as with other permitting actions, an administrative appeal is possible and agency staff are preparing the administrative record to support any review.
Committee chairs said the state remains in negotiations over contract terms and asked committee members to direct detailed questions to the agency leadership outside the hearing because of the ‘‘sensitive nature’’ of those negotiations. Committee leadership also emphasized the plant’s economic role in Millard County and the goal of preserving roughly 1,900 megawatts of capacity ‘‘as a bridge to the future,’’ Ferry said.
During the hearing members described other opportunities around the site and region — including hydrogen storage in existing salt caverns, geothermal potential and interest in nuclear and other advanced technologies — but committee members and agency representatives distinguished those as separate development conversations that would require additional approvals, financing and permitting.
No formal committee action was taken on IPP at this hearing; members were briefed and invited to seek follow‑up briefings from agency officials.
Looking ahead: Agency officials said the permit decision and any subsequent appeals will determine the near‑term regulatory path for continued operation and for future conversion of units. Ferry said interested private parties may continue to contact the Office of Energy Development and the Department of Natural Resources as the state evaluates operations and procurement options.
