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Council hears UAMPS updates: rate-stabilization fund, transmission rates and geothermal prospects
Summary
Councilmember Larsen reported that UAMPS will implement a Rate Stabilization Fund with $0.75 per megawatt-hour of power sales set aside, noted a recent 40% PacificCorp transmission rate spike, and highlighted a Millard County geothermal project that could produce up to 50 megawatts.
Councilmember Eugene R. Larsen updated the council on power-related items, including UAMPS programs and local energy prospects.
Larsen said, "A Rate Stabilization Fund (RSF) will be implemented by UAMPS to help municipalities recover from some of the problems that arose from coal production prices. $0.75 per megawatt hour of power sales will be placed in the fund." He also noted that PacificCorp recently increased transmission rates by 40% before dropping back somewhat and cautioned that transmission costs can vary significantly. Larsen reported UAMPS involvement in a geothermal operation in Millard County that could produce up to 50 megawatts of power and mentioned consideration of prepaid energy models that would treat purchased but unused power as collateral for financing.
Why it matters: electric system costs and interconnection/transmission rates influence municipal utility budgets and customer rates. City officials may need to consider gradual rate adjustments and monitor UAMPS discussions affecting Fillmore’s allocations and debt/credit standing.
