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On our front page this week

  • Nephi and Levan Power customers are in good shape on rate increases

By Myrna Trauntvein
Times-News Correspondent

As a result, not all Utahns are feeling the impact of escalating energy bills. Approximately 40,000 customers, of which Levan and Nephi are two, are receiving electric power from nine cooperatives located throughout the state.

"We're in a good situation," said Mike Peterson, a spokesman for the Utah Rural Electric Association, which represents Utah's rural electric cooperatives. "Our customers won't be exposed to the huge rate increases experienced in other areas."

The co-ops' ownership of the 460-megawatt Bonanza Power Plant near Vernal is one of the reasons members are somewhat protected from rapidly increasing power rates.

The plant's capacity has even allowed the facility to generate electricity for sale to the Utah Associated Municipal Power Systems and the Utah Municipal Power Agency, which supply electricity to several municipalities, such as Nephi and Levan, in the Utah.

UMPA also has an ownership stake in the plant.

"Bonanza has more capacity than what our systems can use at the present time," Peterson said.

Six of the nine co-ops, who are served by the power source, worked to build the plant and a large transmission line from the plant to Mona. The beneficiaries of the project, all under the Deseret Generation and Transmission umbrella, receive power from the source.

Bonanza's power generation has made it so the co-ops do not need to venture onto the high-priced open market.

"They've been able to keep prices stable and will be able to continue that price stability unless there is a problem with the power plant," Peterson said. "The co-ops are just blessed right now that they're able to keep prices stable."

Regions the co-ops cover include northeastern Utah, spilling into northwestern Colorado and southwestern Wyoming; the central portion of Utah's western border spilling broadly into Nevada, and south-central Utah extending into northwestern Arizona.

Just a few years ago, co-op customer were envious of bills paid by others in the state whose utilities were able to get market prices that were low at the time.

"That's flipped," said Peterson.