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Utah PSC hears extensions for Kennecott power purchase agreements; Division recommends approval

November 27, 2025 | Utah Public Service Commission, Utah Subcommittees, Commissions and Task Forces, Utah Legislative Branch, Utah


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Utah PSC hears extensions for Kennecott power purchase agreements; Division recommends approval
The Utah Public Service Commission heard requests from Rocky Mountain Power to approve sixth amendments to two qualifying-facility power purchase agreements with Kennecott Utah Copper LLC covering a refinery and a smelter. The company and the Division of Public Utilities both recommended that the commission approve extensions of the contracts through Dec. 31, 2026.

Catherine Smith, counsel for Rocky Mountain Power, introduced company witness Ivar Smeltrace, who said the refinery agreement (originally filed Oct. 10, 2019, and approved Dec. 20, 2019 in Docket No. 19-035-37) covers up to 7.54 megawatts from a waste-heat-fired cogeneration facility near Magna, Utah, and that the amendment the company seeks would extend that agreement for 12 months beginning Jan. 1, 2026. "I present today for commission approval of amendments to the qualifying facility power purchase agreements between Kennecott Utah Copper LLC Refinery and Smelter and Pacificorp," Smeltrace said in his summary.

Smeltrace gave the same overview for the smelter agreement (originally filed Oct. 10, 2019 and approved Dec. 20, 2019 in Docket No. 19-035-36) and said it covers up to 31.8 megawatts from the same facility. He said the amendments use the commission's previously approved avoided-energy-cost methodology (referencing Docket Nos. 03-035-14 and 12-035-100) and requested, if possible, that the commission issue its order by Dec. 31, 2025 so there would be no lapse between contract terms.

Company counsel moved to admit the company's applications and work papers for both dockets (with portions of Work Papers 3 and 4 marked confidential); the hearing officer admitted those materials into evidence.

The Division of Public Utilities presented utility analyst Annette Orton as its witness. Orton confirmed the Division's review of Rocky Mountain Power's filings and stated that the Division filed action-request responses on Nov. 4, 2025 supporting commission approval. "The division recommends the commission approve the amendments to the nonfirm power purchase agreements between Rocky Mountain Power and Kennecott Utah Copper LLC," Orton told the commission, adding that the Division found the contracts consistent with prior agreements and commission guidelines and that the amendments are "just, reasonable, and in the public interest."

The Division moved to admit its action-request responses into evidence; the hearing officer admitted those filings. There was no cross-examination of either witness by opposing counsel and no contested testimony during the hearing.

No final order was issued during the hearing. The hearing record now includes the company's application and work papers (some confidential) and the Division's filings; the parties asked the commission to issue an order by Dec. 31, 2025 to avoid a lapse between contract terms. The hearing was then adjourned.

Next steps: the commission will consider the evidence and filings in Docket Nos. 25-035-56 and 25-035-57 and, if it follows the Division's recommendation, could issue an order extending the two agreements through Dec. 31, 2026.

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