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Payson signs 5-year agreement to buy hydro power from Strawberry Water Users Association
Summary
Council approved a five-year purchase agreement for hydroelectric power from Strawberry Water Users Association, adding renewable generation to Payson's portfolio; staff opted for five years rather than 10 because of uncertainty about possible future federal allocation changes.
Payson City authorized a five-year purchase agreement to buy hydroelectric output from Strawberry Water Users Association, a move staff said would add a seasonal renewable source (mostly spring/early summer) to the city's power portfolio. Staff explained that while a 10-year deal was preferred, uncertainty about Strawberry's possible change in allocation (if it becomes a Bonneville unit) made a shorter 5-year term more prudent (staff presentation, SEG 3446'3553).
Staff pointed to transmission advantages in the local SUVPs system that made the bid competitive and noted the purchase could represent roughly 8% of the city's power in a good water year. Council approved the agreement after discussion of term length and portfolio fit; staff emphasized the fuel-free and inflation-resistant nature of hydro power and the strategic value of securing additional renewable resources (motion and vote: SEG 3553'3570).
