UMPA official explains joint-action structure, $195 million bond and what it means for Levan rates

Lane Birmingham, introduced to the Levan Town Council as president of the Utah Municipal Power Agency, laid out how UMPA pools resources for member cities, how member contracts work and why a bond sale is under way.

“我们的债券交易将在星期二登上华尔街，” Birmingham said, noting the bond issue that staff have been preparing for was valued at $195,000,000. He described three ways municipalities obtain electricity—investor‑owned utilities, public power owned by a city, or cooperatives—and said UMPA exists to give municipal utilities economies of scale for generation, transmission, scheduling and market participation.

Birmingham emphasized UMPA’s contractual framework: S‑1 (supply) agreements that he described as a postage‑stamp approach where every member pays the same rate for capacity and energy. He said that, under those agreements, members are billed for actual costs and board‑approved reserves and that certain decisions (budget approval, new power resources, bond issuance, and transactions above $5,000,000) can trigger weighted votes.

For Levan specifically, Birmingham highlighted the long-term benefit of having local hydro units that are now debt‑free. He said Levan’s historical share of the hydro debt was small—about $6,219 toward a larger debt paid by the agency—and that once bonds are retired the average cost of hydro power dropped substantially compared with when the units carried debt service. Birmingham gave specific examples of recent capital work covered from a hydro capital fund (a $265,000 control upgrade at Pigeon Creek and a $25,007.68 bearing repair at Cobble Rock) to show how costs were handled and passed through UMPA’s portfolio.

Council members asked about net metering, whether rooftop solar turns meters backward and how cities credit customers. Birmingham replied that each city sets its own net‑metering policy: some pay a tariff, some provide credits and some reset balances at the end of a year. On the structure of governance, he noted every director has one vote and decisions are by majority unless a weighted vote is specifically required.

Why it matters: Birmingham said joint action gives smaller members direct local control and typically lower rates than investor‑owned utilities, while shared resources and marketing revenue can reduce overall portfolio costs. He encouraged council members to call UMPA staff with questions and provided contact information.

The presentation concluded with council members thanking Birmingham and noting the agency’s role in protecting members from volatility in the wholesale energy market.