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Council asks Dixie Power to remove long‑term performance assurance from proposed power‑line sale
Summary
The council reviewed a draft sale to Dixie Power for an overhead electric line and directed staff to return a version that removes a decade‑long performance assurance requirement and related bond language; the town attorney had recommended redacting the clause before moving forward.
Kanosh Town Council members reviewed a proposed purchase agreement from Dixie Power for an overhead power line running north of town. The draft contract included a performance‑assurance provision that would have required the town to post a substantial warranty or bond amount for an extended period; council members and counsel said they considered that unnecessary and asked Dixie Power to remove the clause.
Town counsel reviewed the contract language with the council and said he had crossed the performance‑assurance paragraph out in his working draft and would return a revised contract requesting a quitclaim or bill of sale (not a full warranty deed) and no long‑term town financial guarantees. Counsel also flagged other liability language the town asked Dixie Power to delete or rewrite.
Council members said the power line is long‑standing infrastructure along the main road and that the utility’s stated selling point — removing liability from the town — would be undermined if the town retained a long‑term financial assurance obligation. The council asked staff to send the contract back to Dixie Power with the requested redactions and to bring a revised draft to the council when returned. No final sale or payment was approved at the meeting.
