Toquerville council tables vote on developer-backed plan to create municipal power area

The Toquerville City Council on May 20 heard a detailed presentation from a developer and the developer’s attorney about a plan to establish a municipal power area tied to the Boulder Ridge development and a proposed solar facility, then voted to table Resolution 2025 to allow more time for legal and financial review.

The proposal presented by Jerry, the project developer, and Adam, the developer’s attorney, would create a separate retail electric service area for the portion of the city that includes the Boulder Ridge annex and allow the developer’s solar generation to supply power onsite and, when available, sell surplus power to the city or on a secondary market. “We were able to create that and create a additional revenue stream for the city,” Jerry said, describing developer-paid infrastructure and an arrangement in which the developer initially bears construction costs.

Why it matters: creating a municipal power department would move a portion of retail electric service out of Rocky Mountain Power’s regulated framework and into city control for the specified area. That shift could affect who sets rates, how wholesale power is sourced, and what infrastructure or legal work the city must authorize. Council members repeatedly pressed the presenters on costs, liability, and what responsibilities would fall to the city if the project later transitioned from developer-managed infrastructure to city-run service.

Developers and attorneys described a phased, hybrid approach: Rocky Mountain Power would continue serving most customers, while the new municipal power area would take retail responsibility for the Boulder Ridge parcels and buy wholesale power from a mix of sources — the developer’s solar generation, joint action agencies such as UAMPS, or the open wholesale market. “The city has to buy power from somewhere,” Adam said, explaining how municipal power entities operate differently from investor-owned utilities and often participate in joint-action agencies for wholesale supply.

Council members asked about who would carry the cost and risk for infrastructure, meter reading, billing and emergency repair. Jerry said the developer expects to build infrastructure as part of the development agreement and initially bear costs, and that maintenance and repairs would be contracted to local electrical contractors. “If the city wants us to become the power department, we’ll set up billing and operations. The residents out in the commercial part of Boulder Ridge right now is gonna cover the cost of operating and maintenance of that power part,” he said.

City staff and council repeatedly requested written documentation. Councilman Gary and others asked to see a copy of the development agreement referenced by the presenters and to receive a formal cost and reimbursement schedule in writing. Several council members said they need an explicit guarantee that the city would not carry unanticipated costs for ordinance changes, consultant time or legal review unless the developer reimburses the city in writing.

Outcome: Mayor moved to table Resolution 2025 to allow the council, city attorney and city manager to review the developer’s documents, request a draft memorandum of understanding and a cost-reimbursement schedule, and hold a follow-up meeting with the developer and legal counsel. The motion to table carried by voice vote. No substantive change was adopted at tonight’s meeting.

What’s next: Council members and the developer agreed to schedule a separate, focused meeting with the city manager and the developer’s counsel to review the development agreement, draft MOU language and a detailed cost breakdown before the council takes any formal vote.