By Myrna Trauntvein
Times-News Correspondent
Dallas-based Panda Energy International Inc. is
still considering a power plant to be built near
Mona.
The company, in July 2002, announced plans for a
gas-fired plant at the Mona location that could generate
1,100-megawatts.
One megawatt is enough electricity to power about
500 homes, so the proposed plant is a large scale power
producer.
A major obstacle to the proposal has been the
national economy.
"The development of merchant plants in the U.S. has
slowed down as the economy has slowed down," said Harold
Green, Panda director of corporate communications. "No
one wants to build a plant and have it online when the
demand for electricity is less."
Another obstacle is the sale of power in the
state.
The proposed Utah plant's power generation would
primarily be sold for use in Utah and the company is
calculating its opportunities for power sales. It is
transmission limitations that would, at present, dictate
Panda's power be used inside Utah.
Green said the project had not be scrapped and was
still moving forward. However, the plant is in a holding
pattern at present.
"We're looking at power sale agreements, things
like that."
One threat to the project, aside from the economy,
is the commitments Utah power purchasers have made to
obtain electricity from existing plants or projects
further along in development.
"One thing we're doing now is looking to see what
the market is out there," Green said.
He said that, in the past, merchant plants have
been built without power sales lined up.
"With the present situation in financing, more
companies want to have it, if not totally booked up, at
least substantially booked up."
Panda has no specific time frame for developing any
Utah facility, he said.
In July 2002, officials said a $20 million tax
break was needed for the project to be viable. Equipment
for the $600 million plant would cost $300 million to
$350 million, company officials estimated.
It was also estimated that it would take at least
16 months to obtain various government permits to build
the plant and another 18 months for actual construction,
during which the project would employ 1,000 workers.
Non-regulated Panda is privately held and is
involved in five plants in the United States&emdash;three
in Texas and one each in Maryland and North Carolina. The
company also has power plants in Nepal and China.
In total, those have a total of 3,703 megawatts of
capacity.
Under development are 5,640 megawatts: a
2,260-megawatt plant in Arkansas, a 2,300-megawatt plant
in Arizona and a smaller facility in Oklahoma.
The company also has 5,500 megawatts in what it
calls advanced development.
"We believe Utah is a good place to build a plant,
and we hope to be there someday," said Green.
