The city began selling electrical power to Utah State University at midnight Sunday when the school's contract with Utah Power & Light Co. expired, a city power department dispatcher confirmed Monday.
That was allowed on Friday when 1st District Judge VeNoy Christoffersen rescinded an April 12th order that would have kept Logan from selling electricity to USU until the city reimbursed UP&L for its poles and lines.The judge said the amount to be reimbursed to UP&L will be decided in court later if the two sides cannot agree.
After issuing the new ruling, Christoffersen said in an interview that he based his April 12th decision on the assumption that Logan was subject to general laws under the annexation statute.
The statute says a municipality must reimburse the previous power company for equipment before the city can begin providing power.
Christoffersen said he was convinced after further study of the statute that USU did not fall under the law because it already was within the city limits.
Logan also will have to reimburse UP&L later for the equipment it uses when the city begins serving 55 residential customers recently annexed and now served by UP&L.
Although UP&L has provided power to USU for more than 50 years, Logan recently upgraded its electrical system and the city negotiated a contract with USU last October.
The utility has argued in court that the university did not follow its own procurement procedures in awarding the contract to the city. However, Christoffersen ruled last week that under the Utah Constitution, the city has a right to serve all entities within its boundaries.
The Utah Public Service Commission, however, has scheduled a hearing next week to examine whether the courts or PSC has jurisdiction in the matter.