Some important questions need to be answered before Utah State University ends its longtime contract with Utah Power & Light Co. and begins contracting power from Logan city, UP&L spokesman John Ward said.
Mayor Newell Daines announced Thursday that negotiations have been completed to enable Logan to start supplying power to USU on April 17."We need to know if USU is actually going to pay less for power and, if not, is it legal for a state institution to award a contract to a higher bidder. We also need to know if the school went through proper bidding procedures," Ward said Friday.
He said the utility offered USU a 10-year agreement at a lower price than the current contract but "all we got was a short letter saying our services would be terminated April 17."
Daines has said the university would be paying "a fair cost plus a multiplier of 15 percent."
Ward said Daines has previously criticized the utility for getting a 12 percent return from ratepayers. Daines has also said the contract includes an agreement whereby if USU needs more power than the city can provide, the school can contract on its own for additional power.
Ward said once USU is out of the UP&L service area, the utility would not be legally obligated to supply power and "any other company would probably have to wheel it through our lines."
The city and UP&L will meet in Logan's 1st District Court on April 4 when Logan will make a motion that would require UP&L to conduct a "peaceable and cooperative transition of power," Daines said.
He said the city will make the same request before the Public Service Commission on April 5.