Deseret Generation & Transmission Co-operative has signed letters of intent to sell surplus capacity to Nevada Power Co. and the Los Angeles Department of Water and Power.

The sale of 125 megawatts to Nevada Power and 200 megawatts to LADWP will take place after final contracts and regulatory approval are obtained and when additional transmission capacity to the Nevada border becomes available.DG&T anticipates transmission arrangements to be completed in three to four years, a spokesman said.

The agreement with LADWP provides for up to 100 megawatts sold before completion of transmission, he said. LADWP also has the option of converting its 200 MW purchase into ownership interest in DG&T's Bonanza power plant, located about 28 miles southeast of Vernal.