'Major' breakdown cripples IPP for 6 months

Published: Friday, Feb. 17 2012 8:00 p.m. MST

Officials in other Utah municipalities predicted only a minimal impact or no impact at all on their budgets. That's because California cities buy most of the power from IPP and Utah towns buy theirs from multiple sources.

"We're diversified enough that it doesn't matter," said Hyrum Mayor Dean Howard. "It doesn't affect us at all.

"All of our power is laid off to California," said Von Mellor, director of Parowan's power department. "They pick up the power, and they'll pick up the cost."

Contributing: Jared Page

INTERMOUNTAIN POWER PROJECT

Groundbreaking: 1981

First Unit Startup: 1986

Location: Millard County, Utah, near Delta.

Owner: Intermountain Power Agency (nonprofit)

Participants: 23 municipalities in Utah, 6 in California

Generates electricity for 1.5 million homes

Operating Revenues in 2011: $667.17 million

Debt: $2.33 billion

Largest buyer: Los Angeles Department of Water & Power

More than 80 percent of power goes to Southern California

Consequences of Unit No. 1 Failure:

• Higher cost for electricity from Unit No. 2

• Some participants may see cost increases

• Daily electricity sales reduced by half

• Coal burning reduced by half

• 88 coal truck drivers laid off in Salina

E-mail: hollenhorst@desnews.com

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