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Senate advances bill aimed at protecting Intermountain Power Project customers and jobs
Summary
Senators advanced SB 94, which defines "replacement project capacity" and relaxes certain state-offer requirements if Intermountain Power converts from coal to another fuel; sponsor stressed the measure would protect customers and coal-industry jobs and include 120-day notice requirements. The bill passed on a 27-1 roll call and moves to third reading.
Senator Bramble presented Senate Bill 94, which would add the concept of "replacement project capacity" and exempt Intermountain Power Agency (IPA) from an obligation to offer Utah entities at least 50% of replacement-project power if the facility converts from coal to another fuel source. The sponsor framed the bill as a response to changing market and contract realities that could otherwise leave the Intermountain Power Project without sufficient customers.
"This bill addresses the issue of converting, from coal to natural gas," Bramble said, explaining the bill aims to preserve the project—s economic viability and the related coal-industry jobs in Utah. The sponsor referenced letters from IPA and the Los Angeles Department of Water and Power that outline commitments and consequences: IPA—s materials state that, if SB 94 is enacted, Los Angeles DWP would proceed with negotiations that would secure IPP power through 2077 and not immediately seek replacement sources; if not enacted, DWP indicated it might issue RFPs to replace the power.
Senators asked about and the sponsor committed to circulating legislative intent language on third reading that would express a desire for continued use of Utah coal where feasible. Bramble stressed the proposal includes a 120-day notification requirement before IPA would enter any agreement to replace coal with another fuel.
A roll call recorded 27 yeas and 1 nay; the bill passed and was placed at the bottom of the third reading calendar.
