The City Council has approved the settlement in a suit challenging the Western Area Power Administration's method of running dams.
Midvale was among 155 cities that joined Utah Power & Light Co. in suing to prevent municipal power companies from getting first share of electricity produced from federally owned dams.Rural electric cooperatives and publicly owned power systems, such as in Bountiful, Logan, Murray and Provo, are preferential customers under WAPA's rules.
Utah federal Judge J. Thomas Greene last year ruled the agency was within its rights to give preference. But Green said Congress must decide unresolved issues within the battle over preferential treatment.
The net effect of the settlement between WAPA and the Colorado River Energy Distributors Association, a regional organization of publicly owned power systems, is UP&L will receive non-preferential contracts that should allow it to reduce rates by up to $8 million over the next five years.
That savings will be spread among its 500,000 customers.
Midvale, as other communities that joined the suit, must approve the settlement. The OK came Tuesday night with a unanimous vote.