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Show Paro wan signs for Hunter Power PAROWAN - The. council will sign an agreement with the Intermountain Consumers Con-sumers Power Associaton to purchase 2.039 megawatts from the Hunter II plant according to Mayor James Robinson. The city is now waiting to receive a copy of the contract by mail. Robinson explained that power from the plant will come on line June 1, 1980 and that Utah Power and Light will also own an interest in the plant. He said that the costs of power from the plant will be less than either Moon Lake or IPP and that equity participation was handled through leverage lease financing arrangements. According to Dave Porter, ICPA engineer who recently met with the council, 49 percent , of the plant will be owned by the equity participants par-ticipants and will be leased back to ICPA through Deseret G & T. He said that this type of financing versus Rural Electrification Ad- ministration (REA) will save approximately $122 ' million in costs in financing. The contract period would be for a period of 32 years. Parowan resident Earl Bunn said that if the city had decided ; not to participate in Hunter II that additional power required for residents would have had to be negotiated individually with UP&L and that the price would have been higher than through the association. Bunn also said that the power will take the city a long way down the road to provide all the power which it needs. According to Porter, Parowan . will only be charged for the power it uses and the' power in its allocation not used can be sold elsewhere. Bunn said that during the winter months that Panpwan would use all of the power and that only half fould be used in summer. B" |