OCR Text |
Show Moon Lake Electric rate increase delayed The recent increase of 10.87 mills per KWH for Moon Lake Electric Association, that was proposed and approved after a public hearing on May 28, will not go into effect as previously approved, stated officials this week. The increase that was approved to become effective June 1 was due to an anticipated change of wholesale power suppliers. Approximately 65 percent of the Association's power has been provided by Utah Power & Light Company. Due to a June 17, 1979 decision by the Utah Public Service Commission, it was necessary for the Association to seek an alternative power supply. Through Deseret Generation and Transmission of Sandy, the cooperative formed by Moon Lake and other purchasers pur-chasers of Utah Power & Light wholesale power, the Association has been actively pursuing an opportunity to procure approximately 49 percent of the power from the new Utah Power & Light Hunter II generation plant located in Emery County. The result of this anticipated procurement would have increased the wholesale power cost to the Association, which would have been passed through to the consumers con-sumers in the form of a 10.87 mill per KWH increase. Moon Lake Electric has been aware of problems confronting this procurement of power from the Hunter II Plant and was notified June 4, of the decision to sever negotiations with the lenders. Deseret Generation & Transmission Tran-smission will continue to pursue negotiations to purchase the power from the Hunter II Plant; however, the new lender to be approached will be the Rural Electrification Administration. "We wish the members to be aware that, although the increase will not be effective on June 1, this is only a delay until completion of the purchase of the Hunter II Plant," stated Steve A. Glaim, General Manager of the Association. "It is still imperative that we seek this alternative power supply, but due to the current problems with 'negotiations, which would have resulted in higher costs and possible future liabilities for our members, the decision was made to pursue an alternative money source. The earliest date a power cost pass through can be expected is by early September 1980," continued Glaim. |