House OKs transfer and transition plan for Intermountain Power Project assets

The Utah House on Feb. 27 passed second-substitute House Bill 70, a measure that transfers the two coal-fired generating units at the Intermountain Power Project in Delta from the Intermountain Power Agency (IPA) to a state entity referred to in floor remarks as the Utah Energy Council and establishes conditions for contracting third parties to operate, maintain and reinvest in the facility.

Representative Walter, speaking to the measure, described IPA as an interlocal agency established in 1977 by 23 Utah municipalities to provide power (historically much of the output to Southern California purchasers). He said California purchasers have moved to replace some of the coal capacity with new gas units and that HB 70 ensures that the remaining coal units and shared infrastructure are managed in a way that preserves power supply to Utah municipalities while enabling transition activities. The bill also sunsets the Decommissioned Asset Disposition Authority (DATA) created last year to study disposition options.

Supporters emphasized intergovernmental coordination and preserving reliable, affordable baseline power during a longer transition. Representative Dominguez voiced support, noting municipal investments. Representative Walter said the measure followed long negotiations with municipalities and stakeholders. The House adopted the second substitute and passed the bill by recorded vote: 69 yes, 1 no. The bill will be transmitted to the Senate.