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Midvale Council approves joining Community Renewable Energy Agency, pays $11,000 initial fee

Midvale City Council · August 20, 2024
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Summary

The Midvale City Council voted to join the Community Renewable Energy Agency (CREA), approving a required $11,000 initial payment and a low-income assistance plan; council discussion focused on long-term obligations, opt-out rules for customers, and projected $2–$7 monthly cost increases for participating customers.

Midvale City Council voted August 20 to join the Community Renewable Energy Agency, a regional interlocal program created under HB411 (Utah Code Ann. § 54-17-901) that coordinates with Rocky Mountain Power to provide net-100% renewable electricity to participating communities.

Erin Summers presented the program structure, saying the interlocal agreement has a 50-year term and that participating customers could see an added charge of roughly "$2 to $7 extra in their monthly energy bills" unless they enroll in the Low-Income Lifeline Program (LILP), which would offset the increase for eligible customers. She also explained that customers may opt out of participation and that the Agency itself will not own generation assets; procurement must be competitively solicited and Rocky Mountain Power would have options regarding ownership or purchase of assets.

Council members pressed staff on the long-term commitments and what happens if not enough cities join. Christopher Thomas, Sr. Energy and Climate Program Manager for Salt Lake City, told the council there is "currently no way for a city to join after the application is submitted to the Utah Public Service Commission," and explained that the board would seek to secure a resource and raise a reserve fund to cover costs if customers opt out. City Attorney Garrett Wilcox noted financial risk to participating customers if participation drops and said historical practices indicate the agreement will be binding on cities that sign.

Council Member Dustin Gettel moved to adopt Resolution 2024-R-41, authorizing the mayor to sign the interlocal and program agreements, approving Midvale's low-income assistance plan, making the $11,000 payment due August 31, 2024, and appointing city representatives to the Agency board. The roll-call vote recorded Bonnie Billings Aye; Paul Glover Nay; Heidi Robinson Aye; Bryant Brown Aye; Dustin Gettel Aye. The motion passed and the council authorized the staff to proceed with the steps required by the interlocal agreement.

The staff presentation included additional clarifications: Midvale would owe a second $11,000 fee by August 31, 2025 if it remains in the program; any future price adjustments would be subject to a cap and approval process (presenters described a 10% cap mechanism), and the city must later pass an ordinance containing program details if it moves to implementation.

The council's approval sends Midvale into the due-diligence phase of program participation; staff and council members noted the city can still decide against full implementation when the final program terms and ordinance are considered.