Utah Cities bracing for power crunch

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Deseret News, Saturday, January 27, 2001

Cities bracing for power crunch

Cities raise rates, urge conservation

By Brady Snyder Deseret News staff writer

As the power crisis grips the West, many of the 37 Utah cities that operate their own power companies are raising prices and begging for conservation.

This month alone, at least four northern Utah cities have raised rates to battle soaring electric prices.

In Bountiful, the City Council raised prices 10 percent, with another 15 percent hike planned for July. Kaysville raised rates 9 percent this week, and Logan boosted bills 24.2 percent.

"Everybody's out right now trying to line up power for this summer," Bountiful City Manager Tom Hardy said. "We've had some success, but if we don't have sufficient power, we'll have to institute rolling blackouts like they're doing in California."

Even in spots where hikes haven't been announced, city officials are worried.

"We haven't raised prices yet, and if we can find some more power we won't have to," Lehi Power Superintendent Dennis Ashton said.

But as everyone searches for the same power, it is a big "if" for Ashton.

"I've got a few calls out, and I've got the names of some people who say they have some block power for sale, but we'll see," he said.

In the meantime, city leaders are preparing a newsletter for residents that urges conservation.

It's a newsletter Hyrum City Administrator Brent Jensen has already mailed.

In his small Cache County town, Jensen has instituted a uniquely proactive approach to managing increasing

power costs.

Daily, the town shuts off half the lights on Main Street. The city also turns off a portion of the lights in all public buildings.

City leaders have even enlisted the help of elementary-school children. The child who develops the best energy conservation suggestion wins a $50 prize, with second and third place gaining smaller awards.

In the city's newsletter, Jensen implores residents to conserve and reduce power use during peak hours when demand is greatest.

"If we could cut our consumption back by 15 percent, that would help us tremendously," Jensen said.

Despite the proactive effort, Hyrum residents find themselves in an all-too-common boat.

The City Council raised power rates 14 percent in December and in late January converted to a pay scale that punishes households for using excess power. The first 500 megawatts are regular price, but above that the cost goes up incrementally based on use.

Jensen said the inverted pay scale was needed to save the city from its ever-rising $200,000 power debt.

"Even our current rates will not cover our costs," Jensen said. "We can't continue to lose money as we've done in the past six months."

Jensen notes that Hyrum purchases 15 percent of its energy on the open market. That 15 percent, however, represented 49 percent of the city's total power costs between July and November of last year.

And while costs are high throughout the West, the outlook is a bit rosier along the southern Wasatch Front.

None of the seven Utah County cities that provide their own power have raised rates this year.

In Murray — the only Salt Lake County city that doesn't contract with Utah Power — city leaders haven't raised rates since 1984 and have no plans for future hikes.

Earlier this month the city allocated funds to purchase two new power-generating turbines, with a third generator set to come online this summer. The three new generators would create enough energy that Murray could actually sell some power on the open market.

"We could help out other cities that might not have enough generation," Murray Power assistant general manager Blaine Haacke said. "We could even sell some on the open market to say, who knows, California."

E-MAIL: bsnyder@desnews.com

http://deseretnews.com/dn/view/0,1249,250007128,00.html?

-- Martin Thompson (mthom1927@aol.com), January 27, 2001


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