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Show REAs underway with power source Under an agreement with UP&L and financial institutions, Deseret G&T contracted for the full 39.69 percent share of the plant. A portion of this will in turn be sold to municipal interests, through an organization now being formed. Funds for the cooperative share of the purchase were supplied through a guaranteed loan issued by Federal Financing Bank, with the backing of the Rural Electrification Association. The municipal portion was financed on an interim in-terim basis by National Rural Electric Cooperative Finance Corporation, until the municipal organization can issue bonding to retire this loan. Deseret G&T was formed in 1978 as an entity charged with the responsibility of providing a source of power generation for Utah's cooperatives. Six REA cooperatives, serving in Utah and neighboring states, joined in organizing the G&T, and offered backing in the form of loan guarantees for development capital. Cooperatives involved include Bridger Valley Electric Association, Mountain View, Wyo., Dixie-Escalante Rural Electric Association, Beryl, Ut., Flowell Electric Association, Inc., Fillmore, Ut; Garkane Power Association, Richfield, Ut.; Moon Lake Electric Association, Roosevelt; and Mt. Wheeler Power, Inc., Ely, Nev. The twenty-one municipalities who will be participating in the Hunter transaction, are Beaver City, Fairview City, Hurricane City, Kaysville, City, Town of Meadow, Morgan City, Murray City, Spring City, Enterprise City, Fillmore City, Heber Light and Power, Hyrum City, Lehi City, Monroe City, Mt. Pleasant City, Town of Oak City, Ephraim City, Town of Holden, Town of Kanosh, Logan City and Parowan City. Leon Bowler, of Dixie-Kscalanlc Rural Electric Association, standing at left, was one of the hoard members of Deseret Generation & Transmission Co-operative, witnessing the signing of papers completing the purchase of an interest in Utah Power and Light's Hunter II Plant. The documents are being signed by Harry Fieldsted, president of Deseret G&T, left, and Ralph Robinson, secretary-treasurer, right. Six Rural Electric Cooperatives serving in Utah and adjoining states, as well as 21 Utah municipalities with electrical distribution systems, began taking power from Deseret Generation & Transmission Tran-smission Cooperative at 10 a.m. Friday. At that particular hour meters were read and money transferred consumating negotiations that have been conducted for more than a year between Utah Power and Light and Deseret Generation & Transmission Tran-smission Cooperative, granting Deseret a 39.69 percent ownership interest in-terest in UP&L's Hunter II plant near Castle Dale, Utah. Total sale price was $115,317,668.60. The purchase of an interest in the Hunter plant is a joint project by the cooperatives and municipalities. The cooperatives, through Deseret G&T will realize a generating capacity of approximately 101 megawatts and the municipalities' share will total about 58 megawatts. |