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Show llkadh Agffeeiimeflai JPF Hamt Sefe -Dowmslamg Approval. By GARY R. BLODGETT News Editor BOUNTIFUL - After several sev-eral weeks of negotiations, Bountiful and Utah Power and Light Company have reached an agreement and a contract was signed allowing the downsizing down-sizing of the proposed Inter-mountain Inter-mountain Power Project (IPP). "WE'RE GLAD it's over and hopefully everything agreed to will be for the best interest of all parties concerned," con-cerned," responded Mayor Dean S. Stahle and Harry Blundell, president of UP&L. (See picture of contract signing and full mayor's report on page 2.) BOUNTIFUL, UP&L and IPP officials met in a brief (20 minute) special Bountiful City Council meeting last Friday morning to sign five docu ments which would culminate the long-awaited decision. The documents included: --A POWER sales contract with Utah Power and Light to purchase (from UP&L) 1.375 percent - or 20.63 megawatts of power - annually. --An agreement between Bountiful and other subscribers subscri-bers (owners) of IPP to amend the original contract and allow for reduction of power produced pro-duced by IPP from 3,000 to 1,500 megawatts. At the same time, it was agreed that another plant - not to exceed 1,500 megawatts -- could be constructed by IPP as a separate sepa-rate facility at a later date. --BOUNTIFUL may "layoff its allotment of power pow-er from IPP through UP&L. -Amendment to allow some surplus power owned by Bountiful to be sold through UP&L to subscribers in southern south-ern California. -A RESOLUTION that would bring together all other agreements, contracts and amendments between the three entities. Utah Power and Light Company Com-pany holds shares amounting to 25 percent of the IPP. However, all but four percent of this amount is re-sold to Bountiful and other UP&L subscribers. "DESPITE WHAT much of the public might think, Bountiful Bounti-ful has made every attempt to resolve any questions or misunderstandings," mis-understandings," said Mayor Stahle. "We have been sensa-tive sensa-tive to the needs of UP&L as well as our desires during the entire time of negotiations. "Bountiful has every intent and desire to see the Inter-mountain Inter-mountain Power Project a suc cess, not only as a two-unit, but as a four-unit facility." THE DELAY for Bountiful signing the IPP agreements stems primarily from economic econo-mic concessions that Bountiful officials felt were deserving. These included requests that (I) UP&L transmit power to Bountiful from all power sources built by Bountiful or from which Bountiful had invested in-vested interest; (2) that UP&L agree to allow Bountiful to sell excess (surplus) electricity purchased from UP&L to other customers, especially in southern California; and (3) that UP&L withdraw existing protests and complaints from prior business transactions. Downsizing of the IPP plant near Delta will result in a finan- Bountiful, UP&L Reach Agreement Continued from front page ciai ouraen to ait participants, it was explained earlier. But a complete study of the project has shown that it would be economically eco-nomically impossible to construct con-struct and operate the plant at the original size of four generating gener-ating units. ORIGINAL cost of the plant's construction -- based on four units - was between $11 and $12 billion. Estimated cost of the revised (downsized) facility (two units) is between $6 and $7 billion, according to IPP officials. "We didn't get all that we had hoped for, but there were some concessions by both sides," said Mayor Stahle. "We have constantly been aware of the absolute deadline UP&L was facing and have attempted to resolve this matter mat-ter as quickly as possible." MR. BLUNDELL agreed that there had been good cooperation between the parties par-ties involved -- that each was attempting to obtain, or retain what they felt was justified. "There were many differences differ-ences of opinions but in the end we feel that the best has been accomplished for all parties par-ties involved including UP&L customers - and there are no hard feelings," he said. MAYOR STAHLE commended com-mended all those who had "worked so long and diligently to reach this decision. It has been an interesting experience and we hope there will be no more misunderstandings about ab-out Bountiful's position regarding re-garding the IPP or its dealings with UP&L." |