The Utah Municipal Power Agency and Western Area Power Administration officials have signed a contract that will allow UMPA to receive electrical power generated from the Provo River Project.
The Provo River Project is a small water-development project consisting of two 2.5 megawatt generators at Deer Creek Dam.UMPA and the Intermountain Consumer Power Association will receive the power. The contract is effective through Sept. 30, 2008.
"UMPA and its member cities have been interested in acquiring the surplus generation from the Provo River Project (Deer Creek) for some time," said UMPA General Manager G. Richard Judd. "Western Area Power Administration's help was an essential element for the project to come to fruition."
Levan, Manti, Nephi, Provo, Salem and Spanish Fork are the member cities of UMPA. UMPA serves as a purchasing agent of federal power for the cities, said Judd.
"The contract provides for the sale of power and energy to UMPA on behalf of its members. UMPA members will receive approximately 70 percent of output from the project," said Judd.
Contract terms include the payment of all annual power plan expenses of the project, including an amount to assist the Provo River Water Users Association repayment of the U.S. original investment in the project.
"The Utah Municipal Power Agency is looking forward to this long-term relationship between Western and the Provo River Water Users Association for this mutually beneficial arrangement," said Judd.
Western will market the output of the Provo River Project as a separate marketing contract from its Salt Lake City Area/Integrated Projects power plants.
"We are extremely pleased that we were able to help provide this relatively inexpensive resource to UMPA," said Kenneth Maxey, Western's Salt Lake Area manager. "We hope there will be similar opportunities in the future to assist UMPA and its members to meet their resource needs."
The signing of the contract, according to Judd, "Will bring a clean renewable resource without any negative environmental effects. We appreciate the hard work and perseverance it took to develop this contract."
Western is a power marketing administration within the Department of Energy that markets and delivers electrical power generated by federal dams in 15 Western states. Western's Salt Lake office markets and delivers power to some 180 wholesale organizations in Utah, Arizona, Colorado, New Mexico, Nevada and Wyoming.