Officials hope to have a city-owned power company operating within the next two weeks.
Councilman Guy Bird said Utah Power & Light Co. should complete a by-pass modification before the end of January allowing the city to take over the power operation. Bird said a city-owned substation is nearing completion and financing to complete purchase of all UP&L facilities within Santa Clara is expected to be in place within the next few days.In December, the Utah Public Service Commission approved an agreement finalizing Santa Clara's option to purchase UP&L owned facilities for nearly $9.9 million.
The city has borrowed $1.4 million from MRG Leasing to finance the project. The city will repay the loan over a 10-year period.
Bird said the city opted to create a city-owned power company to try and reduce the cost of electric energy to city residents. About 600 customers will be served. Bird said the power company revenues will be used to operate and maintain the city system and to repay the loan for the first 10 years. Once the loan is repaid, the city hopes to use excess revenue to lower or stabilize property taxes.