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Show Utah Press Association 467 E, 300 So. SLC, UT 84111 TV Listing Inside The Voice of MT. PLEASANT, UTAH Volume Ninety 84647 - December Sanpete County Number Fifty 9, 1982 UPMj customers pay rates West Editors note: This is the second in a series of articles undertaken by The Pyramid to inform our readers of the reasons behind their higher and higher electric bills.) expensive coal reserves with much cheaper hydroelectricity available from the Northwest. In 1975, for example, UP&L generated only 73 percent of its MT. PLEASANT Ten years ago, resident, il customers of Utah Power Light ?o. paid the third lowest electricity prices in the Mountain & Region. Only seven years later, in 1979, they shared with Arizona the highest electric rates in the mountain region (Utah, Arizona, New Mexico, Nevada, Colorado, Montana, Wyoming and Idaho.) What happened? According to Sylvia M. Siegel, a utility expert from ilifornia who made a study of U Ls captive coal operation and an evaluation of the cost impacts on customers, its because there is no more cheap hydroelectric power available. To cut power costs, UP&L historically has taken advantage of its favorable location between two by obtaining pools power hydropower from the Northwest, she states. This practice has enabled the utility to displace its own high-costeam generation fueled by its more st requirements because large amounts of low-cohydropower were purchased. Displaced steam st generation and surplus hydro- generation above what could be used by the company were sold to neighboring utilities. This practice of making economy lowered company purchases operating costs and resulted in substantial savings benefiting both customers and stockholders, the Siegel report notes. The days of cheap and plentiful surplus Northwest hydropower are over, the utility expert contends, and UP&L will have to rely on its own high-costeam generation, fueled by coal from the companys three captive mines in Emery Wilberg, and Deer st County-Des-Bee-D- Creek. "It also means UP&L will have to rely more heavily on its older plants (Hale, Gadsby and Carbon) which have high heat rates and much higher production costs, Ms. Siegel contends. Without cheap Northwest power to dilute the companys high generation costs, UP&L customers, its own deep-mine-d than coal was much cheaper includes and that many purchasing if from outside supmunicipalities, will be hit with much pliers. There is an abundance of readily higher costs, she predicts. One alternative available evidence which indicates One alternative which should be the utility could purchase coal on the explored to mitigate power costs is market at lower prices than it can the availability and access to cheap mine it. In April, 1980, for example, power from Wyoming and Montana, the study concludes. Nevada Power Co. purchased In June, 1980, the Centralia, coal from 165,000 tons of Wash., and Jim Bridger, Wyo., coal Carbon County for its Reid Gardner plants were operating at 1.5 and 18 plant in Southern Nevada at a price percent capacity because they had of $1.32 per million BTU. The UP&L no place to send their power. Hunter plant paid $1.59 per million Construction of new tran- BTU for 98,000 tons of the company's smission lines or upgrading of older own contract coal. lines to states exporting cheaper The most striking figure is a power may offer important energy purchase made by Nevada Power in savings and cost benefits to UP&L October, 1979. Ms. Siegel suggests. While UP&Ls Gadsby Plant was customers, To supply its six power plants, buying 37,000 tons of UP&L coal for UP&L pays coal prices which are $1.38 to $2.23 per million BTU, and among the highest in the Mountain the companys Hunter Plant was region. In 1973, the average buying it for $1.46, Nevada Power delivered contract price of coal paid was able to purchase 55,000 tons of d coal at the spot by UP&L was 34.2 cents per million Utah BTU, compared to an average of 23 market price of $1.28 - $1.33, the cents paid by the rest of the study notes. Mountain Region. The number of plants purchasing In 1979, UP&Ls average coal coal at prices lower than those paid costs rose to $1.03 per million BTU by UP&L are too numerous to list while the average Mountain Region here, the report states. coal cost was only 67.2 cents per The impact of UP&Ls policy to milliom BTU. ...supply substantially all of its coal UP&L draws almost all the coal needs from company-ownemines for its plants from the companys on costs of power generation and own coal reserves. Its policy of ultimately electric rates should be of preferring its captive coal to coal paramount concern to the Utah purchased on the free market stems Public Service Commission, which from its apparent belief that ...the "Sis primary responsibility for incost of the coal obtained from its suring that UP&Ls customers are mines is lower than the cost of coal paying the most reasonable cost for that could be supplied under1 long- the electric service, the Siegel study term contract from outside sup- contends. pliers, the study quotes. Dean Bryner of UP&L testified We have been unable to uncover Jan. 11, 1980 before the Utah Public any study or report made by either Service Commission and argued UP&L or the Utah Public Service there was no way a study could be Commission which either supports made to determine whether UP&L or refutes UP&Ls management was purchasing the cheapest coal decision to rely exclusive on its possible. captive coal operation from the At the same time, he vigorously standpoint of cost effectiveness, insisted that the companys practice Ms. Siegel's report concludes. of purchasing deep-mine- d deep-mine- d Smiles for Santa Claus and shared secret wishes are signs of the season in Sanpete County. This youngster was one of hundreds who visited Saturday with Santa when the d gentleman set up headquarters in Ml. Pleasant. white-bearde- Manti Council votes to ignore petition By Carolyn Swenson MANTI The Manti City Council has decided to go ahead with its plans for the city sewer system, ignoring the initiative petition against the sewer signed by 301 of the 1156 registered voters in Manti. This action taken in the Dec. 1 meeting opens the council to the possibility of a law suit, according to backers of the petition, but it is the opinion of City Attorney Paul Frischknecht that the courts have uniformly held that, although a legislative issue must be put before the people for a vote, an administrative issue need not be taken to the people. Subdividers dominate commission agenda 1 By Ida O. Donaldson MANTI The Sanpete County Mayor Cox asked about having the old ambulance kept in Fairview and also to have the county carry the insurance on it. Other costs for equipping the old ambulance were Morris Cook of Moroni, general chairman of the Sanpete Valley Hospital Fund drive, updates the billboard in front of the present structure to indicate the new pledge total this week. Funds pledged now stand at $201,000 toward the $450,000 needed to build the new $2.6 million facility. Volunteers are calling on local residents for the pledges to be paid over a period of from three to five years. Commission met all day Tuesday and cleared the agenda of a variety Spring City hears trailer park pitch Mayor Cox and the commissioners discussed working together on the road leading to the Fairview removal at Whispering Pines Elementary School and it was Subdivision, discussed taxes on a decided that the county would do Mt. Pleasant subdivision, met with what they could as soon as the representatives of the American weather will permit. Legion and the Veterans of Foreign Wars regarding a veterans DWR land purchase monument, met with the State Fire Don Christensen from the Division Warden, heard a request to take out a bridge southwest of Fayette, and of Wildlife Resources met with the put off action to approve Indian commissioners to report that they are purchasing some land in the Ridge plats. Commissioners Ned Madsen, Mayfield area. It is a requirement Newton Donaldson, and Willis that they notify the commission Candland met with Willard Smith, when they purchase any land. auditor, and reviewed the tentative Del Taylor of Indianola asked budget for 1983. The Commissioners about the the of and Smith set an additional meeting taxes on possibility y lowering the Valley for the following day to do further Subdivision. The commissioners work on the budget. pointed out that when property goes Hearing Tuesday under a subdivision, the land is will A public hearing on the budget taken out of agriculture and be held on Tuesday, December 14, at therefore the assessments increase. House. 10 a.m. in the County Court In further business, Dexter Knight New jail and Fairview Mayor Eddie Cox met of Architect John Evans with the commissioners regarding Richardson and Associates an ambulance for the West side of representatives of the Manti City the county. They reported an am- Council met and discussed the new bulance has been purchased from jail facility and what the county radio plans are for the Sandy City and also a two-wa- y building and which will be placed in the am- parking area, handling prisoners, bulance. This ambulance will be etc. in Fountain Mr. Green. Knight kept Dean Baker and Les Bell met with and Mayor Cox asked that the County carry the insurance on this the commissioners asking for final ambulance. The title would be approval on the Axtell Estates transferred to Sanpete County so Subdivision. The Commissioners that the insurance could come under approved the project subject to the the county policy. The com- County Attorney reviewing and missioners agreed to do this. approving it. of matters. The 1983 tentative budget, was reviewed and commissioners heard representatives regarding the West Side ambulance, discussed individual gave final approval on the Axtell Rancho Estates, heard a request regarding snow discussed. association equipment. The will buy tax-relie- By Rickell James Irish SPRING CIT- Y- The Spring City Council at its December 1 meeting heard a brief report from Doug Heiden, Mt. Pleasant realtor, concerning a proposed trailer park within the city limits in the northeast section of town and the costs involved in developing the Vk acre space facility. City The city will check up on state regulations concerning septic tanks and notified Heiden he would be responsible for any unpaid power and water bills, as per city regulations. Heiden stated that restrictions would be placed on renters regarding skirting of trailers and the number of animals allowed. The council took no action on the proposal for the park. Mayor Craig Paulsen reported he had made an appeal to the Police Acfademy to pay the training fee for Brent Pyper and that this appeal was turned down. The Academy said when Pyper finishes his G.E.D. requirement for high school diploma credits, that he and the mayor should approach the Academy again with request for payment. 1 The proposed state sales tax increase was reviewed by the council and a motion was made to support this tax legislation which would increase sales tax by V percent and would distribute the revenues with a larger portion going to small cities. This would help Spring City with its small tax base. The council also passed a motion to support the new North Sanpete hospital to be located in Mt. Pleasant. Application has been made by the National Guard to clean up the city streets and a project to remove junk vehicles from the streets will be held in conjunction with this project. Council members have volunteered to operate the snow plow to clear snow from sidewalks on Main Street and around the school yard. The council passed a motion to change the citys contract with Intermountain Power Assoc, to receive an additional 400 units of power from the Intermountain Power Plant. This power will not cost the city any more and the city can use the power only when needed. The Fire Department reported a very successful pheasant hunt and breakfast which raised approximately $625. The department is planning a training course for volunteers. Hide-A-Wa- ambulance the needed Silvio Fassio of Whispering Pines Subdivision asked about fixing a at the place for a subdivision so that the school bus and also other people traveling the turn-aroun- d road can turn around. Com- missioner Candland and County Road Supervisor Gene Bardsley will go with Mr. Doug Heiden to look at the situation and come to a decision. Taxes high Jerry Stansfield asked about reducing taxes on a subdivision in Mt. Pleasant. He feels like they are too high considering the type of land it is and since the development has not been completed. No action was taken but Stansfield was told that his request would be considered. Robert Allred, Lyle Klotz, and Gene Williams met with the commissioners regarding setting up a memorial to service men and women of Sanpete County. If was decided to call a public meeting after the first of the year and inviting the public to help work out a suitable memorial. Plats reviewed Don Cornell and Clyde Naylor met with the commissioners for final approval of plats S through Z" of the Indian Ridge Subdivision in Indianola. After reviewing the plats, it was decided further information should be furnished the County Attorney and they will meet with the commissioners on December 14th for further action. Clyde Dorius and others met with the commissioners regarding an old county bridge southwest of Fayette. The group requested that the bridge be taken out. Debris is piling up in the stream and causing flooding on agricultural ground in the area. It was decided to remove the bridge. Randy Thorpe, State Fire Warden, met and discussed state fire protection in the county. The It is my opinion, Frischknecht that the sewer is an adsaid, ministrative issue since a revised code of ordinances adopted by Manti City Council in 1979, included a sewer ordinance. A motion made by Morlin Cox to take no action on the petition, reject it as filed and proceed with the business of the sewer project, was adopted unanimously. of recommendation The Frischknecht to take no action or ignore the petition means the vote must automatically be included on the ballot of the next regular election in November, at which time the sewer is expected to be completed. Since the petition does not have a retroactive clause it would have no effect on action taken to that point. However, a vote against the sewer would affect maintenance needs. Pay engineers Dave Thurgood of Thurgood Engineering, the firm working on the sewer project, was present asking for payment of $14,000 for preliminary work done to Oct. 31 including aerial photography, site approval and plans. Jay Cluff moved, and the council of $4,000 approved, the from the $92,000 interest-fre- e money already in the bank, to cover the request for payment and authorized Mayor Bob Bessey to sign the check. Thurgood also inquired as to when the council would be ready to sign a contract to proceed with con- struction of the sewer. Mayor Bessey was concerned that the council not be obligated to Thurgood in the event the city was stopped from preceeding with the sewer by court action, and he asked that a clause be written into the contract to cover such a probability before he was prepared to sign it. New hydro plants? Another major move for Manti was proposed to the city council by Jordan Walker, city electrician, who has been negotiating with James Montgomery and Associates a Salt Lake City based company, on a project to upgrade the Manti Creek hydropower plants. The plants would replace, at a cost of approximately $1.6 million, the upper and lower stations built in 1912 and 1936. The project is expected to make Manti almost completely in- dependent from UP&L and generate enough power to pay for itself in four to five years. It would be built to last 40 years and be practically maintenance-free for years. Walker said the preliminary study could begin Dec. 2 and be ready to submit for approval by Dec. 21. The $5,400 for the preliminary study is being sought from a loan Adfrom Home Farmers ministration which has indicated the money is available. There is also hydroproject money available in Manti city acts quickly enough to try to receive it. Mayor Bessey was authorized by the council to enter into a contract with the Salt Lake firm for the hydro project, by a motion from Lionel commissioners signed the fire King and the,unanaimous support of the council. contract with the State for 1983. 25-3- 0 |